UPSC Prelims 2022 Q67: Current Affairs – Business & 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?
- (a) 2 and 4
- (b) 3 and 5
- (c) 1, 3 and 4
- (d) 1 and 2
Answer: (c) 1, 3 and 4
Explanation
Vietnam's economic story
| Statement | Verdict | Fact |
|---|---|---|
| 1. One of the world's fastest-growing economies recently | Correct | Growth of 6-7% a year for much of the last decade |
| 2. Led by a multi-party system | Incorrect | Vietnam is a one-party State led by the Communist Party of Vietnam |
| 3. Growth linked to global supply chains and exports | Correct | A major hub for electronics (Samsung), textiles and footwear |
| 4. Low labour costs and stable exchange rates attract manufacturers | Correct | A key reason for the 'China plus one' shift |
| 5. Has the most productive e-service sector in the Indo-Pacific | Incorrect | No such ranking supports this; Singapore, Japan and South Korea lead in services |
Vietnam's Doi Moi reforms of 1986 opened its economy to markets and foreign investment.
Answer: (c) 1, 3 and 4.
Why each option is right or wrong
- (a) Incorrect. Statement 2 is false; Vietnam is a one-party Communist State.
- (b) Incorrect. Statement 5 is an unsupported superlative about e-services.
- (c) CORRECT. Fast growth, export-led supply chains and low labour costs describe Vietnam well.
- (d) Incorrect. Vietnam has no multi-party system, so statement 2 fails.
Key point
Vietnam: one-party Communist State; fast export-led growth since the 1986 Doi Moi reforms; low labour costs and a 'China plus one' magnet.
Remember
Vietnam: one-party, export-led, low-cost manufacturing hub.
Common mistakes
- Assuming a fast-growing market economy must have multi-party democracy.
- Accepting superlatives like 'most productive' without evidence.
- Forgetting the Doi Moi reforms as the start of Vietnam's growth.
Exam tip
Superlatives ('most', 'only', 'best') in UPSC statements are usually false unless they are well-known facts.
Sources
- The World Bank — Vietnam: country page (Overview)
- IMF — Vietnam Article IV Consultation (2022)