Question

2. Vietnam now has an economy that is growing strongly with low unemployment and rising living standards. What changes in economic policy have been responsible for this economic transformation? 3. The level of public corruption in Vietnam is high. Why is this the case? How do you think this affects Vietnam's economic performance? What should the government do about this?

Answer 1

Ans 3. Vietnam has an economy that is growing strongly with low unemployment and rising living standard and this statement is completely true and it is possible only because of the strong economic policies followed by the Vietnam government. Vietnam followed the following economic policies in the development of economy with the strong point in the employment generation and raising the standard of living of the people. 1. Vietnam followed the economic policy of reinvestment and a proper mobilisation of savings. Mobilisation of savings increases the productivity because businessmen utilises the loan amount in the development of the investment projects which are helpful in providing employment and manufacturing the goods that are important for raising the standard of living of the people. 2. Vietnam followed the price stability policy with strong initiative in the implementation of monetary policies and fiscal policies in the economy which are helpful in maintaining the price stability in the economy basically for the necessity goods and also providing the subsidies for the settlement of industries and agriculture also. 3- The level of public corruption in Vietnam is high and it is because of the dominance of private sector in the economy. Private sector basically working for the earning of profit and it doesn't matter what is the way they are following too and the profit so for this reason they are offering various bribe offers which leads to public corruption in Vietnam. The corruption negatively affect the economic performance because in the long run it leads to low level of productivity and it raises the inflation rate, decrease in the price value and also increases the unemployment in the economy so to stop all such things government has to do some major changes in their economic policy by involving in a proper way in every project And always monitor the functioning of the performance of the private sector government has to conduct proper audit time to time for the smooth functioning of the industries and government also adopted the policy of providing awareness to the people so that they are tax money can be utilised in a proper manner.