UPSC Prelims 2022 · Question 67 of 98

UPSC Prelims 2022 question on Vietnam Economy

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?

  1. 2 and 4
  2. 3 and 5
  3. 1, 3 and 4
  4. 1 and 2
Show answer

Answer: C. 1, 3 and 4

Verdict

Correct statements: 1, 3 and 4 → Option (c) 1, 3 and 4.

Statement by statement

Statement 1 – CORRECT: Vietnam has been one of the fastest-growing economies in the world in recent years. Between 2002 and 2021, GDP per capita increased 3.6 times, reaching almost US$3,700.

Statement 2 – INCORRECT: Vietnam is a one-party communist state, not a multi-party parliamentary democracy. Hence statement 2 is not correct.

Statement 3 – CORRECT: Vietnam's export-led growth strategy and global integration are among the key factors behind its remarkable economic achievements. The economy has proven resilient through different crises including COVID-19.

Statement 4 – CORRECT: Vietnam's low labour costs and stable exchange rates have lured global manufacturers as wages rose in the rest of East Asia. Hence statement 4 is correct.

Statement 5 – INCORRECT: According to the Asian Development Bank Report, e-services including digital financial services are at a very nascent stage in Vietnam. Countries like Philippines, Singapore and Indonesia are the forefront in e-commerce productivity. Hence statement 5 is not correct.

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