_1633097962 1633097962 Andhika Rafi Hananto andhikarh90@gmail.com Bright Institute International Journal for Applied Information Management Int. J. Appl. Inf. Syst. 2776-8007 09 13 2021 2 1 10.47738/ijaim.v2i1 http://ijaim.net/journal/index.php/ijaim/issue/view/5 Trung-Thanh To This paper investigates the determinants of trade balance in Vietnam during 1997-2015, basedon the restricted VECM model. The result suggests that in the long run, the openness has negative impacton trade balance. The initial level of NFA is negatively associated with trade balance. The moredeveloped financial system can improve trade balance meanwhile higher income can worsen it. REERcould have no close relationship with trade balance. Increasing FDI can contribute to trade deficitmeanwhile capital mobility could improve trade balance. The trade balance also has a self-adjustingmechanism towards long-run equilibrium after the shocks to explanatory variables. 09 14 2021 13 25 https://creativecommons.org/licenses/by-sa/4.0 10.47738/ijaim.v2i1.23 http://ijaim.net/journal/index.php/ijaim/article/view/23 http://ijaim.net/journal/index.php/ijaim/article/download/23/27 http://ijaim.net/journal/index.php/ijaim/article/download/23/27