Q. Consider the following statements:
1. Vietnam has been one of the fastest-growing economies in the world in 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 labor 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?
a) 2 and 4
b) 3 and 5
c) 1, 3 and 4
d) 1 and 2
Correct Answer: c) 1, 3 and 4
Question from UPSC Prelims 2022 GS Paper
Explanation :
Vietnam’s Economic Growth
Vietnam has been one of the fastest-growing economies in the world in recent years. The country has experienced rapid economic growth over the past few decades, being recognized for its significant economic expansion, with GDP growth rates consistently among the highest in the world.
Global Supply Chain Integration and Export Focus
Vietnam’s economic growth is closely linked to its integration with global supply chains and a strong focus on exports. The country has become a crucial manufacturing hub for electronics, textiles, and other goods, driving its economic growth.
Attracting Global Manufacturers
For an extended period, Vietnam’s low labor costs and stable exchange rates have attracted global manufacturers. These factors have been key in enabling the country to attract foreign direct investment and integrate into global supply chains.
Political System and E-Service Sector
Contrary to a multi-party political system, Vietnam is led by a single-party state, with the Communist Party of Vietnam being the only legal party. Additionally, while Vietnam’s e-service sector is growing, it is not the most productive in the Indo-Pacific region when compared to countries like Australia, Japan, and South Korea.
