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?
Answer & explanation
Answer: (c) 1, 3 and 4
Statements 1, 3 and 4 are correct. Vietnam's growth has been rapid and export-led, but it is a one-party state led by the Communist Party, not a multi-party system, and its strength lies in manufacturing rather than services.
- ✓ 1. The World Bank describes four decades of rapid growth in Viet Nam since the Doi Moi reforms of 1986.
- ✗ 2. Article 4 of Vietnam's Constitution makes the Communist Party of Vietnam the force leading the State and society; it is a one-party system.
- ✓ 3. Growth was amplified by strategic integration into global trade and investment flows, as the World Bank notes.
- ✓ 4. The OECD lists competitive labour costs (with proximity, trade agreements and infrastructure) among the reasons manufacturers relocate to Viet Nam. UPSC's official key counts the statement as correct; we could not confirm the exchange-rate detail from an official source, so we do not explain it here.
- ✗ 5. UPSC's key treats this as incorrect. Vietnam's growth story is built on manufacturing exports; nothing in the sources supports a claim of regional leadership in e-services.
Remember · Vietnam: Doi Moi (1986), export-led growth in global supply chains, one-party Communist state.
Sources
- World Bank: Viet Nam Overview ↗ “a milestone in four decades of rapid growth that began with economic reforms launched under Đổi Mới in 1986. Strategic integration into global trade and investment flows amplified this momentum”
- Constitution of the Socialist Republic of Vietnam (official English text, as hosted by the Asian Development Bank), Article 4 ↗ · reference work “is the force leading the State and society.”
- OECD, FDI Qualities Review of Viet Nam (2026) ↗ “Viet Nam’s geographic proximity, competitive labour costs, expanding network of free trade agreements, and improving infrastructure have made it one of the primary destinations for these relocations”
Question and answer: UPSC's official GS Paper I (2022, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 1 Oct 2026 (how we verify). ·