Issue: Số 7 - Tháng 3 - 2025Tài chính - Ngân hàng - Bảo hiểm
Inflation, real exchange rate, and trade balance: A case study of Vietnam - Japan
Published: July 25, 2026
Abstract
This study investigates the relationship between Japan’s inflation, the real exchange rate (JPY/VND), and the trade balance between Vietnam and Japan. The findings indicate that, in the long term, rising inflation in Japan leads to a depreciation of the real exchange rate (JPY/VND). In the short term, Japanese inflation negatively affects the bilateral trade balance, whereas the real exchange rate exerts a positive influence on Vietnam–Japan trade performance. Based on these results, the study offers several policy recommendations aimed at improving exchange rate management and restructuring Vietnam's export portfolio to enhance trade outcomes with Japan.
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