It is projected that FDI and remittance inflows to Vietnam would also weaken this year due to the global economic slowdown, providing less support to VND.

Vietnam's continued trade surplus helps strengthen its forex position.

With nearly US$83 billion of foreign exchange reserves, the State Bank of Vietnam has more than enough reserves to comfortably meet redemptions.

Vietnam central bank is ready to intervene in the foreign exchange market in case of necessity.

Any currency weakness is likely to be mild so as to avoid possible sanctions from the US given Vietnam's inclusion in the US Treasury’s currency manipulator watch list.