Q37 (IAS/2022) Geography › World Human & Economic Geography › World economic profiles Official Key

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 ?

Result

Your answer: — · Correct: C

Explanation

The correct answer is Option 3 (1, 3 and 4). The explanation for the validity of these statements is as follows:

Statement 1 is correct: Vietnam has consistently ranked among the world's fastest-growing economies, maintaining high GDP growth rates driven by industrialization and foreign investment.
Statement 3 is correct: Vietnam’s "Doi Moi" reforms shifted the country toward a market-oriented economy. Its growth is deeply rooted in global supply chain integration through numerous Free Trade Agreements (FTAs) and a robust export-oriented manufacturing sector.
Statement 4 is correct: Competitive low labor costs and a relatively stable exchange rate policy have made Vietnam a primary destination for global manufacturers looking to diversify away from China (the "China Plus One" strategy).

Why other statements are incorrect: Statement 2 is false because Vietnam is a one-party socialist republic led by the Communist Party of Vietnam. Statement 5 is incorrect as there is no empirical data to suggest Vietnam has the most productive e-service sector in the Indo-Pacific, a region dominated by more advanced digital economies like Singapore or South Korea.

How others answered

Each bar shows the % of students who chose that option. Green bar = correct answer, blue outline = your choice.

Community Performance

Out of everyone who attempted this question.

89%

got it right

Web / Current Affairs

Online pages / news items supporting the statement

Web source

Presence: 5/5

"Since 1990, it has been among the world’s fastest growing economies, steadily narrowing the income gap with more developed parts of the world."

Why this source?

Directly states Vietnam's growth status since 1990 as being among the world's fastest.
Links that rapid growth to narrowing the income gap and inclusive development, indicating sustained recent performance.

Web source

Presence: 5/5

"Its spec-tacular growth since then, one of the fastest in the world, has all but eliminated extreme deprivation and lifted tens of millions of people out of poverty."

Why this source?

Explicitly describes Vietnam's growth as 'one of the fastest in the world'.
Connects that rapid growth to major social improvements (eliminating extreme deprivation, lifting millions out of poverty), implying substantial recent economic expansion.

Web source

Presence: 4/5

"labor—the country’s exports have expanded at an average of about 12 percent per year, transforming the country into one of the most open economies in the world (in terms of the ratio of trade to GDP) and creating millions of productive jobs for the fast-growing population."

Why this source?

Provides quantitative support for rapid growth via export expansion averaging about 12% per year.
Shows exports driving rapid and inclusive growth across decades (1990s–2010s), corroborating Vietnam's status as a fast-growing economy.

Indirect textbook clues (5)

How books hint at the answer

Contemporary World Politics, Textbook in political science for Class XII (NCERT 2025 ed.) > Chapter 2: Contemporary Centres of Power > 20 Contemporary World Politics > p. 20

Strength: 5/5

“Unlike the EU there is little desire in ASEAN for supranational structures and institutions. ASEAN countries have celebrated what has become known as the 'ASEAN Way', a form of interaction that is informal, non-confrontationist and cooperative. The respect for national sovereignty is critical to the functioning of ASEAN. With some of the fastest growing economies in the world, ASEAN broadened its objectives beyond the economic and social spheres. In 2003, ASEAN moved along the path of the EU by agreeing to establish an ASEAN Community comprising three pillars, namely, the ASEAN Security Community, the ASEAN Economic Community and the ASEAN Socio-Cultural Community.”

Why relevant

Says ASEAN contains 'some of the fastest growing economies in the world', giving a regional pattern that members of ASEAN can be among fastest growers.

How to extend

A student could note that Vietnam is an ASEAN member (basic fact) and therefore plausibly part of that group, then check recent GDP growth rankings to test the claim.

Contemporary World Politics, Textbook in political science for Class XII (NCERT 2025 ed.) > Chapter 2: Contemporary Centres of Power > The Rise of the Chinese Economy > p. 22

Strength: 4/5

“Let us now turn to the third major alternative centre of power and our immediate neighbour, China. The cartoon on the following page sums up the current mood all over the world about the rise of China as an economic power. China's economic success since 1978 has been linked to its rise as a great power. China has been the fastest growing economy since the reforms first began there. It is projected to overtake the US as the world's largest economy by 2040. Its economic integration into the region makes it the driver of East Asian growth, thereby giving it enormous influence in regional affairs.”

Why relevant

Describes China as the fastest growing economy since reforms and as the driver of East Asian growth, suggesting regional spillovers of growth within East/Southeast Asia.

How to extend

Use a world map or knowledge of regional trade/investment links to infer Vietnam might benefit from East Asian growth and then verify Vietnam's recent growth rates.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 16: India–Political Aspects > INDIA'S ROLE IN WORLD AFFAIRS > p. 58

Strength: 3/5

“The Republic of India, the second most populous country and one of the fastest growing economies in the world, is considered as a major power and a potential superpower. It is India's growing international influence that gives it a prominent voice in global affairs. India has a long history of collaboration with several countries and is considered as a leader of the developing world. India was one of the founding members of the United Nations and the Non-Aligned Movement and is an active member of several international organisations, most notably the WTO, ADB, SAARC, G8+5, East Asian Summit, and G20.”

Why relevant

Labels India as 'one of the fastest growing economies in the world', showing that being a large developing economy in Asia can coincide with very high growth — a pattern applicable to other Asian economies.

How to extend

Compare Asia-wide growth patterns and recent country-by-country GDP growth data to see whether Vietnam fits the same pattern.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 1: Fundamentals of Macro Economy > The household sector now decides to spend only Rs. 70 for its consumption purpose and save Rs. 30 out of the total Rs. 100 earned. > p. 12

Strength: 3/5

“When India got independence, our economy was producing 95% consumption goods and 5% capital goods i.e., savings was only 5%. At that time, we wanted to increase the output of the economy to serve millions of starving populations and hence we started saving more. More savings led to an increase in production of capital goods in the economy which further increased the production of goods and services. In 2019-20, India's savings was around 28% of the GDP which means India was producing around 72% consumption goods and 28% capital good i.e., investment. China has consistently been able to produce more than 40% capital goods out of the total output (GDP) of their economy which has propelled China into the fastest growing economies of the world.”

Why relevant

Explains that high capital goods production (investment) propelled China into the fastest growing economies, illustrating a mechanism (high investment share) associated with rapid growth.

How to extend

A student could check whether Vietnam has experienced rising investment/industrialization (basic economic facts) to judge if similar mechanisms might have produced fast growth.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 7: Indian Economy after 2014 > 7.2 Manufacturing > p. 228

Strength: 2/5

“After India liberalized its economy in 1991, the services sector was among the fastest growing part of the economy, contributing significantly to GDP, economic growth, international trade and investment. Manufacturing contributes just 16 percent to India's GDP, compared to a 54 percent contribution by services. But the services sector employs fairly skilled people and India's most abundant resource is unskilled labour, that is why”

Why relevant

Notes that the services sector can be 'one of the fastest growing parts of the economy', highlighting sectoral sources of rapid growth.

How to extend

Check whether Vietnam's recent growth has been driven by services, manufacturing, or investment to assess if it matches patterns of other fast-growing economies.

Consider the following statements about colonial economy of Vietnam (Indo-China): 1. The colonial economy in Vietnam was primarily based on rice cultivation and rubber plantations. 2. All the rubber plantations in Vietnam were owned and controlled by a small Vietnamese elite. 3. Indentured Vietnamese labour was widely used in the rubber planta- tions. 4. Indentured labourers worked on the basis of contracts that did not specify any rights of labourers but gave immense power to the employers. Which of the statements given above is/are coiTect ?

Consider the following statements regarding Indias advocacy for a permanent seat in the United Nations Security Council : 1. India is the largest democracy in the world. 2. India is among the top five largest growing economies in the world. 3. India has been the largest contributor to the United Nations Peacekeeping Forces. 4. India is one of the top ten contributors of the United Nations Budget. Which of the statements given above is/are correct?

In the context of Indian economy, consider the following statements : 1. The growth rate of GDP has steadily increased in the last five years. 2. The growth rate in per capita income has steadily increased in the last five years. Which of the statements given above is/ are correct?

Consider the following statements : 1. Employment growth in India in the second half of the first decade of 21st century was relatively modest. 2. There was lower labour force participation rate across all ages during the period. Which of the statements given above is/are correct?

Consider the following statements: 1. India ranks first in the world in fruit production. 2. India ranks second in the world in the export of tobacco. Which of these statements is/are correct?

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Explanation

PROVENANCE & STUDY PATTERN

SIMILAR QUESTIONS

In the context of Indian economy, consider the following statements : 1. The growth rate of GDP has steadily increased in the last five years. 2. The growth rate in per capita income has steadily increased in the last five years. Which of the statements given above is/ are correct?

Consider the following statements : 1. Employment growth in India in the second half of the first decade of 21st century was relatively modest. 2. There was lower labour force participation rate across all ages during the period. Which of the statements given above is/are correct?

Consider the following statements: 1. India ranks first in the world in fruit production. 2. India ranks second in the world in the export of tobacco. Which of these statements is/are correct?