Thang Nguyen, Anh Nguyen Ngoc, Nhat Nguyen Duc & Duc Nguyen Cao, 2008, "Deficits in the Current Accounts - Causes and Solution", No. 363, 8-2008, Economic Studies, Vietnam Institute of Economics - Vietnam Academy of Social Sciences.

Keywords: deficits, current Accounts, Vietnam, GDP

Abstract:

The deficit of current accounts is normal in the market economy and international economic integration, however, the deficit in current accounts can only be regarded as being safe when the deficit make up for less than 5 per cent of GDP.

Vietnam’s deficit of the current accounts was around 11 per cent or went beyond that limit, leading to the high inflation in 2008 and other consequences which has threatened the economic successes recorded during “Doi moi” period.

The writers analyze the causes of the deficit and proposes solutions to the problem so that it will not fall into crisis as it happened to Thailand before.

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