Consider the following statements: 1. Vietnam has been one of the fa

Consider the following statements:

  • 1. Vietnam has been one of the fastest growing economies in the world in the recent years.
  • 2. Vietnam is led by a multi-party political system.
  • 3. Vietnam’s economic growth is linked to its integration with global supply chains and focus on exports.
  • 4. For a long time Vietnam’s low labour costs and stable exchange rates have attracted global manufacturers.
  • 5. Vietnam has the most productive e-service sector in the Indo-Pacific region.

Which of the statements given above are correct ?

2 and 4
3 and 5
1, 3 and 4
1 and 2
This question was previously asked in
UPSC IAS – 2022
Statements 1, 3, and 4 regarding Vietnam’s economy are correct, while statements 2 and 5 are incorrect.
– Statement 1: Vietnam has indeed been one of the fastest-growing economies globally in recent decades, driven by reforms and integration into the global economy.
– Statement 2: Vietnam is a socialist republic with a single-party system led by the Communist Party of Vietnam, not a multi-party system.
– Statement 3: Vietnam’s economic growth is strongly linked to its integration into global supply chains, particularly in manufacturing, and a focus on exports.
– Statement 4: Low labour costs and a stable exchange rate have been significant factors attracting foreign direct investment and global manufacturers to Vietnam for a long time.
– Statement 5: While Vietnam’s e-service sector is growing rapidly, claiming it is the “most productive” in the entire Indo-Pacific region is a very strong and likely inaccurate claim compared to more developed economies like South Korea, Singapore, or even parts of India.
Vietnam underwent significant economic reforms (Doi Moi) starting in the late 1980s, transitioning from a centrally planned economy to a socialist-oriented market economy. Its strategic location, young population, and trade agreements have further boosted its economic trajectory.
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