Title: Exchange rate volatility and Vietnam’s green product exports: does financial liberalisation in partner countries matter?

Authors: Nguyen Thi Thu Huong

Addresses: Department of Foreign Trade Economics, Faculty of Economics, Vietnam Maritime University, Hai Phong City, Vietnam

Abstract: This study examines the relationship between exchange rate volatility and green product exports of Vietnam using a panel dataset covering Vietnam's green exports to 178 partners over 2002-2022. Adopting the Poisson pseudo-maximum likelihood (PPML) estimations to a gravity model, this study shows that fluctuations in real exchange rates between Vietnam dong and partners' currencies hinder Vietnam's green exports. Therefore, keeping exchange rates stable is essential for promoting Vietnamese green trade. Moreover, this study discovers that increased financial liberalisation in Vietnam's partners effectively lowers the adverse effects of exchange rate instability on trade flows. Thus, even with the significant volatility in the foreign exchange market due to global economic turmoil, there are still various chances for Vietnam to boost its green exports to countries with fewer restrictions in financial markets. This outcome provides a crucial implication for identifying potential partners to enhance Vietnam's green trade performance.

Keywords: exchange rate volatility; financial liberalisation; green product exports; Vietnam.

DOI: 10.1504/GBER.2026.154024

Global Business and Economics Review, 2026 Vol.34 No.4, pp.461 - 478

Received: 22 Aug 2024
Accepted: 17 Jan 2025
Published online: 10 Jun 2026 *

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