Write an essay about 300-400 words about The external sector: analysis of the ba

Question

Write an essay about 300-400 words about The external sector: analysis of the balance of trade and the financial flows between domestic and foreign entities. Imports and exports vital to Viet Nam’s GDP will be examined.

Data : Population: 89.7 million GDP (PPP): $359.8 billion 5.4% growth 5.7% 5-year compound annual growth $4,012 per capita Unemployment: 1.9% Inflation (CPI): 6.6% FDI Inflow: $8.9 billion.

Note: Please, I want a honest answer, do not copy or plagiarize directly from any sources . Thank you.

Explanation / Answer

Vietnam is the country that is traditionally ruled by governments with socialist orientation. It has caused Vietnam to develop as a planned economy in the past. In recent years, government of Vietnam has made the policy change and gradually shifted to the mixed economy or socialist market economy through reforms. These initiatives has helped Vietnam to join the mainstream of global economy.

Vietnam has been agriculture based country whose strength lies in export of products like coffee, coconuts, Brazil nuts and crude petroleum. Though, top export items are broadcasting Equipments, crude petroleum and coffee that earn maximum export revenue. Total export done by Vietnam is valued at $79.3 Billion.

Contrary to this, Vietnam imports refined petroleum, IC circuits and telephones among the others. Total value of import is $101 Billion. Data figure of import and export not only shows that import is higher than the export but also it reflects the lack technological advancement in Vietnam economy. For example, export of crude oil and import of refined petroleum reflects the lack of petroleum refineries that could reduce the burden of import. Such issues can be resolved through FDI. At present, it is $8.9 Billion that needs to increase.

An FDI friendly policy is required to put in by the Vietnam government. It can be done through opening up the sectors and / or increasing the investment cap in industries. A population of 89.7 million will better serve through cost effective labor market and it is an attractive option for the MNCs willing to come in Vietnam.

Further, foreign investment will also increase the real output and new employment opportunities will be created. It will reduce the current unemployment level of 1.9%. Vietnam should also build ties with developed nations with respect to technology sharing and infrastructure development. It is the real test of Vietnam government that how do they curb their socialist ideologies and ask for the support from western nations.

A strategic shift in government approach will cause the further boost to the external sector of Vietnam that deals with the export and import of the product and services. It will also reduce the trade deficit and more forex will be generated by the Vietnam economy. Overall, it boosts the Vietnam economy.

Source of data:

https://atlas.media.mit.edu/en/profile/country/vnm/

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