Abstract:
In the context of the changing world market in which while oil gas price is increasing, house market’s booming out in the US, in Vietnam, inflation is becoming higher, real estate is freezed, the stock market slowdown with the VNindex’s continuous decrease to a low record, trade deficit and current account deficit in 2007 became higher and early 2008 the situation tended to be worse, raising the concerns of many policy makers and economists that trade deficit and current account deficit are dangerous and unsustainable, and can cause economics crisis.
Recently, local and international press and foreign organizations have provided negative reports on instability of Vietnam macro-economy. Report of the Prime Minister Nguyen Tan Dung discussed at National Assembly on 31 May 2008 said that trade deficit can cause unbalance of payment and affect macro-economy. As in international experience and economics theory, when current account deficit is high for a long time without any necessary solutions ( such as increase in interest rate, devaluation of the price of the Dong, decrease in governmental expense), the economy may face with monetary crisis. One popular example is monetary crisis in Thailand in 1997 when current account deficit in Thailand was too high and short-term debt without payment ability cannot keep the price the Thais and foreign reserve is out of
Language: Vietnamese
Current account deficit: reason and solution