Factors affect the trade relationship of Vietnam with Asian countries: A Gravity model approach research

Abstract

This paper applies the Gravity Model to examine factors that affect the trade relationship between Vietnam and Asian countries. Through estimation techniques for panel data in the period 2000 - 2011, we found that the geographical distance, the exchange rate, the national production, the population of Vietnam and the Asian countries have affected on international trade of Vietnam and even more impactful after the WTO joinning of Vietnam. Particularly, the export and import activities between Vietnam and the Southeast Asia and East Asia countries are strongly impacted by these factors