Vietnam forex reserve has recently continued to grow, hitting a record high, mainly driven by strong export revenues, stable foreign direct investment (FDI) inflows, and increased remittance income.

The increase in forex reserves provides the SBV with sufficient ammunition to intervene in the forex market and stabilize the dong exchange rate. Adequate reserves also enhance international investor confidence in Vietnam economy, helping to attract more long-term capital inflows.

However, it should be noted that reserve growth also brings certain inflationary pressure and currency issuance pressure. The SBV needs to find a balance between reserve accumulation and inflation control, while optimizing reserve asset structure.