Deficits in the current accounts - causes and solutions

Abstract

The deficit of current accounts is normal in the market economy and international economic ontegration, however, the deficits in current accounts can only be regarded  as being safe when the decifit make up for less than 5 per cent of GDP. Vietnam's decifit of the current accounts was around 11 per cent or wnet beyond that limit, leading to the high inflation in 2008 and other consequences which has threatened the economic successes recorded during renovation period

The writers analyze the causes of the decifit and proposes solutions to the problem so that it with not fall into crisis as it happened to Thailand before. The main contents of the article include:

1. Background

2. The status of trade decifits and current account decifits in Vietnam

3. Danger of crisis stemming from current account decifits

4. Causes and solution to current account decifits