Vietnam is in a favorable condition to take advantage of free trade agreements (FTA) that the country is a part of, as well as growing global demand in the late-year shopping season.

Vietnam’s trade outlook for the remainder of the year is projected to have intertwined challenges and opportunities, with the country’s efforts to contain the pandemic the most important factor.

It is likely that the trade balance would return to positive in the coming months as exports normally go up in the final months of the year.

Prospect of possible trade deficit in upcoming months and the impacts from current Covid-19 pandemic in Vietnam would pose pressure on the USD/VND exchange rate.

Vietnam recorded a trade surplus of US$1.63 billion in the four-month period.

There could be a shift in trade movement as Vietnam’s trading advantage against China is diminished given the presence of the RCEP.

Vietnam's trade turnover is expected to reach US$74 billion in the January – February period, up 2.4% year-on-year.