The balance of payments in the first half of 2024 showed a deficit of nearly US$7.44 billion, a significant reversal from the surplus of nearly US$4.58 billion during the same period last year. What caused this shift? Sharp deficit in Q2 According to updated figures from the State Bank of Vietnam, the balance of payments in Q2 2024 recorded a deficit of nearly US$6.07 billionómore than 4.4 times the deficit seen in Q1. This represents a marked shift from the surplus of nearly US$3.4 billion in Q2 last year. The fact that both Q1 and Q2 this year saw deficits indicates a concerning trend, particularly as this contrasts sharply with last yearís surpluses in the same periods. Cumulatively, the balance of payments in the first six months of 2024 resulted in a deficit of nearly US$7.44 billion, a stark contrast to the surplus of nearly US$4.58 billion during the same period in 2023. While trade surpluses and foreign direct investment (FDI) remained robust, they were insufficient to offset the growing deficit, as several contributing factors persisted. Specifically, the current account balance in Q2 posted a surplus of US$4.51 billion, but this was only 45% of the surplus recorded in the […]
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