“High budget overspending is expected to last during the coming years because the government continues to apply a loosened fiscal policy to support the economic growth” A soaring trade deficit and budget overspending will continue fuelling the country’s macroeconomic instability. Many National Assembly deputies said continued big trade deficit and budget overspending were the two direct major causes of macroeconomic instability in 2010 and during the following years. “The country’s macroeconomy is continuing to be unstable and is exposing more risks,” said National Assembly Economic Committee vice chairman Vu Viet Ngoan. The government reported that Vietnam’s total export and import turnovers were estimated to be $68 billion and $81.5 billion, respectively, in 2010. The trade deficit of $13.5 billion was estimated to be equivalent to 19 per cent of total export turnover. This came in line with the government’s goal to curb the trade deficit at below 20 per cent of export turnover. “The government has recently targeted to reduce the trade deficit to 14 per cent of export turnover by 2015. But, whether this target can be achieved depends on many factors, because the government has failed to make breakthroughs in its policies,” said Bac Lieu province deputy Vo Thi Hong Thoai. Vietnam has suffered a trade deficit for 19 years and was $14 billion in 2007, $18 billion in 2008 and $12.8 billion in 2009. Huynh The Du, lecturer of the Fullbright Economic Programme in Vietnam, said Vietnam’s population was 87 million people and India’s 1.3 billion people….