"Vietnam has been one of the fastest growing economies…." UPSC pre 2022

 

 This was a Tough question, in Exam like situation it is difficult to solve but if you are following economic survey of the last 5 years' strategy then you might have solved the question.

 

But practically going through the last 5-year Economic survey is difficult.

 

you should not worry about these type of questions because they do not test your knowledge rather they test whether under pressure can you take the decision of leaving the question which is essential for anyone to clear the prelim.

 

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 ?

(a) 2 and 4

(b  3 and 5

(c) 1, 3 and 4

(d) 1 and 2

 

Solution- C

 

 

Statement 1. Vietnam has been one of the fastest growing economies in the world in the recent years.

 

Statement 2. Vietnam is led by a multi-party political system.

 

False because Vietnam is a one-party communist state. --- It could be guessed if you knew the basics of US-Vietnam war which is very famous especially if you have watched Hollywood war based movie.

 

Interesting fact - not much important for Exam

The conventional view remains that the United States lost the Vietnam War[1955-75] because the US opponent, North Vietnam, conquered the side they backed, South Vietnam, which surrendered in April 1975.

 

Why did the US go to war in Vietnam?

 

China had become communist in 1949 and communists were in control of North Vietnam.

 

The USA was afraid that communism would spread to South Vietnam and then the rest of Asia. It decided to send money, supplies and military advisers to help the South Vietnamese Government.

 

Statement 3. Vietnam’s economic growth is linked to its integration with global supply chains and focus on exports.

 

This statement is taken from economic survey.

 

What we can learn from Vietnam Economy?---Use it mains as fact

 

Vietnam’s open economic policy of recent years integrating into global supply chains has made the growth success story possible in recent years.

 

Vietnam's export-led growth strategy and global integration are among the key

factors behind the country's remarkable achievements in growth and poverty reduction.

 

Between 2002 and 2021, GDP per capita increased 3.6 times, reaching almost US$3,700 and Poverty rates declined sharply from over 32 percent in 2011 to below 2 percent today.----Do not try to remember these figures these are just for reference

 

Its economy has proven resilient through different crises, the latest being COVID-19.

 

 Interesting Fact

 

Government of India still uses the Tendulkar committee’s findings (21.9 per cent) as the official estimate of the number of Indians who are below the poverty line.

 

 

Why has India not revised its poverty estimates?

 

Experts believes one reason is the transition post-2014, when the Planning Commission was scrapped.

 

India GDP per capita for 2021 was $2,257.[around 1.8 lakhs[with 1$=80rupees]]

 

 

4. For a long time Vietnam’s low labour costs and stable exchange rates have attracted global manufacturers.

 

This statement is taken from an Economic survey can be guessed also because most of the ASEAN nation have cheap labour.

 

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.

Remember - Stable Exchange rate and Policy measure attract FDI and Global manufacturer --- It can be a possible question in UPSC pre.

 

 

5. Vietnam has the most productive e-service sector in the Indo-Pacific region.

 

By logic of Extreme word statement it is wrong.

 

What is indo-pacific region?

 

Indo-Pacific which, for India, stretches over a vast, predominantly maritime expanse from the eastern shore of Africa to the western shore of the Americas.

 

It have giant like Singapore in terms of productivity.

 

According to Asian Development Bank Report, e-services including digital financial services are at a very nascent stage in Vietnam.

 

Now let's revise the concept using the question