This has helped the central bank to stabilize foreign exchange rates.

According to a macroeconomic report by the Banking University of Ho Chi Minh City, foreign direct investment (FDI) flows annually poured into Vietnam are important resources for the nation’s foreign currency reserves.

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The report also pointed out challenges facing Vietnam in the coming time, including the US-China trade war which causes impact on global economic activities.

Vietnam’s export growth in the first half of this year expanded only 7.3 percent, 10.5 percent lower than that of the same period last year.

Trade deficit was at USD 37 million in the period, while the country enjoyed a trade surplus of USD 4.12 billion a year before.

Export turnover of the domestic economic sector increased by 10.8 percent. Meanwhile, that from the FDI area, which plays a crucial role in offsetting trade deficit from the domestic economic sector, rose by only 5.9 percent in the reviewed period.

Source: VNA