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. [2022]

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?

2 and 4
3 and 5
1, 3 and 4
1 and 2

Explanation

Statements 1 and 3 are correct

Vietnam’s economic success is largely due to its open economic policies and integration into global supply chains. The country’s focus on export-led growth and global engagement has driven significant economic expansion and poverty reduction. Between 2002 and 2021, Vietnam’s GDP per capita increased by 3.6 times, reaching nearly $3,700. Concurrently, poverty rates ($1.9 per day) fell dramatically from over 32 percent in 2011 to below 2 percent today. Vietnam’s output growth surged after it opened its economy to market forces. Since 1996, GDP has risen by 344%. Vietnam’s GDP growth has outpaced that of the Asia-Pacific region (260%) and Frontier Markets (193%).

Map showing Southeast Asia region including countries Myanmar, Laos, Thailand, Cambodia, and Vietnam with major cities labeled such as Naypyidaw, Vientiane, Bangkok, Phnom Penh, and Ho Chi Minh City. Key geographical features like Gulf of Tonkin, South China Sea, and Spratly Islands are highlighted with color-coded country borders and water bodies in blue.

Statement 2 is incorrect

Vietnam, a one-party Communist state and has been a unified country since 1975, when the armed forces of the Communist north seized the south.

Statement 4 is correct

The availability of low-wage labor has driven the robust growth of Vietnam’s manufacturing sector over the past decade, making it an appealing option for industries looking for cost-effective and stable manufacturing solutions.

Statement 5 is incorrect

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

India – Vietnam Relations

Historical Ties: Mahatma Gandhi and President Ho Chi Minh exchanged messages during their countries’ independence struggles.
Strategic Partnership: India-Vietnam relations were elevated to a “Comprehensive Strategic Partnership” in 2016 and both countries have shared security concerns, including border issues with China.
International groupings: High-level interactions include meetings at the G7 Plus Summit, India-ASEAN Summit, and the UNFCCC.
Trade and Economic Cooperation: Bilateral trade reached USD 14.82 billion in 2023-2024.
Exports: Engineering goods, agricultural products, and pharmaceuticals.
Imports: Electronics, machinery, footwear, and garments.
Development assistance: India supports Vietnam through training, capacity building, and socio-economic development projects. For example, Quick Impact Projects under the Mekong Ganga Cooperation framework.
Defense and Security Cooperation: The VINBAX exercise is a joint military exercise between India and Vietnam, gifting the missile corvette INS Kirpan to Vietnam and joint military exercises.
Capacity building: India provides training programs and scholarships to Vietnam, contributing to Vietnam’s socio-economic development.
Indian diaspora: Around 8,500 Indians live in Vietnam and are employed in various sectors, and Indian businesses have a presence in Vietnam.

Answer: (c) 1, 3 and 4; Difficulty Level: Medium

2022, PYQs