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?
Explanation
Statements 1 and 3 are correct. Vietnam's open economic policy of recent years integrating into global supply chains has made the growth success story possible. Vietnam's export-led growth strategy and global integration are among the key factors behind the country's remarkable achievements in growth and poverty. Vietnam was one among the few countries to post GDP growth rate figures 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 2 is not correct. Vietnam is a one-party communist state, not a multi-party parliamentary democracy.
Statement 4 is correct. Thanks to an abundance of low-wage labour, 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 labour costs and stable exchange rate. Hence,
Statement 5 is not correct. According to the Asian Development Bank Report, e-services including digital financial services are at a very nascent stage in Vietnam.