Abstract
This study examines the impact of foreign exchange rate fluctuations on the financial performance of export companies, focusing on key financial indicators such as profits, revenue, costs, and liquidity. It aims to assess how exchange rate volatility affects these indicators and provides recommendations for mitigating associated risks. The study employs quantitative methods, including multivariate linear regression, to analyze the relationship between exchange rate movements and financial performance. Additionally, qualitative approaches, such as expert interviews and surveys of financial managers, offer deeper insights. The study focuses on large export companies in Vietnam over the past five years. Findings reveal that exchange rate fluctuations significantly influence profits and revenues, with import-dependent companies experiencing greater negative impacts due to their reliance on foreign currencies. Conversely, export companies may benefit from domestic currency depreciation, although the extent of this advantage depends on financial management practices and the use of hedging strategies. The study also highlights that exchange rate risks contribute to rising operational costs, particularly through increased foreign currency interest expenses and raw material import costs.
