After remaining stable for more than two years, the dong’s depreciation has accelerated recently due to both global and domestic factors, including the strong rally of the greenback, the recent tumble of the yuan, the trade deficit, foreign net selling in the stock market and the gap between USD and VND interbank interest rates, which favor the USD. However, the depreciation of the dong (1.0% YTD) is much smaller than other currencies, especially EM currencies. We believe solid FDI disbursement,