Our paper examines the long run relationship in Vietnam between economic growth and the current
account balance equilibrium by relying on the BoP constrained growth model. We find that
Vietnam grew less than the rate predicted when the period 1985 to 2010 as a whole is considered,
but with different behavior for the 1998-2010 sub-period. The relative price effect is neutral,
allowing the volume effects to dominate in setting the BoP constraint. The high income elasticities
of exports enable growth in the advanced countries to have a multiplier effect on the Vietnamese
economy. However, this effect is hindered by a high’ appetite’ for imports coming from Asia. We
also assess the impact of the current crisis on Vietnam’s growth for the period 2011 to 2017.