The study was conducted with the objective of examining the impact of real effective exchange rate volatility on trade balance in Vietnam during the period of 2002 - 2019 at the quarterly frequency. The VAR model was used to achieve the proposed research objective. The volatility of real effective exchange rate (vol_reer) is calculated through the GARCH (1,1) model based on the quarterly data on real effective exchange rate (reer) of the Vietnamese currency with 143 major trading partners of Vietnam. |