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 ✓ UPSC's answer
- (d) 1 and 2
Why the answer is (c)
• Statement 1 is correct: Vietnam has grown at 6–7% a year for much of the past two decades, among the fastest in the world.
• Statement 3 is correct: its growth rests on integration into global supply chains and export manufacturing (electronics, garments, footwear), with exports exceeding GDP.
• Statement 4 is correct: low labour costs and a managed, stable dong exchange rate have drawn Samsung, Intel, Nike and, more recently, Apple's suppliers.
• Statement 2 is wrong: Vietnam is a one-party state ruled by the Communist Party; statement 5 is an unsupported superlative — Vietnam is not the region's most productive e-service sector.
• Hence 1, 3 and 4, option (c).
Why the other options are wrong
- (a) 2 and 4
- Statement 2 is wrong: Vietnam is a one-party state.
- (b) 3 and 5
- Statement 5 is unsupported; statements 1 and 4 are correct.
- (d) 1 and 2
- Statement 2 is wrong: Vietnam has no multi-party system.
Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2022, held on 5 June 2022. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.