Read the article “Vietnam’s growth model: The special sauce” from The Economist, September 4, 2021, pages 57-58. The article is available from the Canvas course website AssignmentsWriting Assignment. Write a report on the following assigned questions in your own words.
Do not merely copy the words or sentences in the article or line up unrelated answers to the assigned questions. You may use as references the article, your textbook, and your class notes. No other print or online sources are allowed. Please include your references using APA format at the end of your report if you cite the article above and/or the textbook.
The report should be four pages, double line-spaced, 12-point font. The report needs to be typewritten using Microsoft Word. No handwritten papers will be accepted.
Please refer to the assigned article.
1. What have been the main driving forces of Vietnam's economic growth in the past 30 years? What makes the economic growth of Vietnam different from China?
2. Vietnam provides subsidies (e.g., corporation tax reductions) to promote import-competing industries. Please analyze the effects of this type of subsidy on domestic producers, consumers, and national welfare.
3. Is Vietnam’s current trade pattern consistent with any trade theory that you have learned in Econ 335? Please specify which theory/theorem you apply and explain why it is (or not) consistent.
4. As Vietnam develops, what will happen to the domestic wages and other factor prices? What would be the threat to Vietnam’s economic expansion? What needs to be done to sustain growth? What would be the comparative advantage for Vietnam in the future?