Here is Question No. 67 a part of our series on UPSC Prelims 2022.
Q67. Consider the following statements:
- Vietnam has been one of the fastest-growing economies in the world in recent years.
- Vietnam is led by a multi-party political system.
- Vietnam’s economic growth is linked to its integration with global supply chains and focus on exports.
- For a long time, Vietnam’s low labor costs and stable exchange rates have attracted global
manufacturers. - 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
Answer – C
- Statement 1 is correct: According to a forecast by PricewaterhouseCoopers in February 2017, Vietnam may be the fastest-growing of the world’s economies, with a potential annual GDP growth rate of about 5.1%, which would make its economy the 10th-largest in the world by 2050.
- Statement 2 is incorrect: Vietnam is a Marxist–Leninist one-party state based on democratic centralism. Vietnam is a one-party communist state, not a multi-party parliamentary democracy.
- Statement 3 is correct: Vietnam’s economic growth is linked to its integration with global supply chains and focus on exports. Poverty rates declined sharply from over 32 percent in 2011 to below 2 percent today. Thanks to its solid foundations, the economy has proven resilient through different crises, the latest being COVID-19. Vietnam was one of only a few countries to post GDP growth in 2020 when the pandemic hit. Vietnam is projected to be the fastest-growing internet economy in Southeast Asia in the next 10 years.
- Statement 4 is correct: Thanks to an abundance of low-wage labor, Vietnam’s manufacturing sector grew at a compound annual growth in the last decade. As the rest of East Asia developed and wages there rose, global manufacturers were lured by Vietnam’s low labor costs and stable exchange rate. Vietnam has low labor costs and stable exchange rates which attract global investments.
- Statement 5 is Incorrect: According to the Asian Development Bank Report, e-services including digital financial services are at a very nascent stage in Vietnam. Vietnamese fintech companies raised a total of US$375 million in the first nine months of 2021, putting the country at the 3rd position in fintech investment amount across ASEAN, is behind only Singapore and Indonesia. Countries like the Philippines, Singapore and Indonesia are the forefront in e-commerce productivity.
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