MỤC LỤC

1. The world economy: Definition, characteristics, structure; Characteristics of the

world economy and their impacts on Vietnam’s international trade and investment as
well as making international trade policy and investment policy of Vietnam. (Hà Linh)..........................
1.1. Definition................................................................................................................................................
1.2. Characteristics.......................................................................................................................................
1.3. Structure................................................................................................................................................
1.4. Characteristics of the world economy and their impacts on Vietnam’s international
trade and investment as well as making international trade policy and investment policy
of Vietnam....................................................................................................................................................
2. Globalization: Definition, global value/supply chain, the positive and negative
impacts of globalization on Vietnam’s economy; globalization and policy solutions for
the Vietnamese government. (Khương Huyền).............................................................................................
2.1. Globalization: Definition and Global Value/Supply Chain......................................................................
2.2. Positive Impacts of Globalization on Vietnam's Economy.....................................................................
2.3. Negative Impacts of Globalization on Vietnam's Economy...................................................................
2.4. Globalization and Policy Solutions for the Vietnamese Government....................................................
3. Deindustrialization: definition, causes/factors, and economic and social impacts;
Deindustrialization and Vietnam. (Khánh Trang)..........................................................................................
3.1. Definition................................................................................................................................................
3.2. Causes/factors of deindustrialization.....................................................................................................
3.3. Economic and social impacts of deindustrialization..............................................................................
3.4. Deindustrialization in VietNam...............................................................................................................
3.5. The deindustrialization process in Vietnam is evident through various indicators:...............................
4. Dynamics of manufacturing sectors (Automobiles, textiles and garments,
electronics): global trend, roles, and characteristics; Vietnam in the global garment
and textile value chain; Vietnam in the global automobile value chain; Vietnam in the
global electronic value chain; and policy solutions for the Vietnamese government.
(Tuấn).................................................................................................................................................................
4.1. Textile....................................................................................................................................................
4.2. Electronics............................................................................................................................................
4.3. Automobile.............................................................................................................................................
5. Population: Current trend, major theories explaining the development of population
(Malthusian Theory and Demographic transition theory) – content/advantages and
disadvantages/ application. (Thanh Huyền)..................................................................................................
5.1. Current trend of population around the world........................................................................................
5.2. Major theories explaining the development of population.....................................................................
6. Common population problems of developing countries (Eg. International migration,
aging population, human development, inequality, etc.) – causes/ effects/ solutions;
the relationship between population & resources, in general, and population growth &
food security, in particular? (Kiên).................................................................................................................
6.1. International migration...........................................................................................................................
6.2. Aging population....................................................................................................................................
6.3. Inequality...............................................................................................................................................
6.4. Relationship between population & resources......................................................................................

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 6.5. Relationship between population growth & food security......................................................................
7. Resources and environment: Renewable and non-renewable resources – definition/
example/ actual situation of exploitation and use of these resources in Vietnam; main
sources of renewable and non-renewable energy - characteristics/ pros and cons;
impacts of energy crises and practical contact with Vietnam. (Lê Linh)....................................................
7.1. Renewable and non-renewable.............................................................................................................
7.2. Characteristics of renewable and nonrenewable energy......................................................................
7.2.1. Renewable energy........................................................................................................................
7.2.2. Nonrenewable energy..................................................................................................................
7.3. Pros and Cons of Renewable and Nonrenewable................................................................................
7.4. Actual situation of exploitation and use of these resources in Vietnam................................................
7.4.1. Non-renewable:............................................................................................................................
7.4.2. Renewable:...................................................................................................................................
7.5. Impacts of energy crises and practical contact with Vietnam................................................................
8. Energy development potential of Vietnam - current status/ achievements and
drawbacks/ solutions / FDI attraction into energy development in Vietnam; how the
legal possession of oceans contributes to Vietnam’s development and affirmation of
position? Climate change: definition/ impacts/ solutions. (Lưu Linh)........................................................
8.1. Energy development potential of Vietnam.............................................................................................
a. Current status.....................................................................................................................................
b. Achievements and drawbacks............................................................................................................
c. Solutions.............................................................................................................................................
d. FDI attraction into energy development in Vietnam............................................................................
8.2. How the legal possession of oceans contributes to Vietnam’s development and
affirmation of position...................................................................................................................................
8.3 Climate change.......................................................................................................................................
9. Agriculture: Industrialization of agriculture – definition/ content / application;
distinguish between subsistence agriculture and commercial agriculture, major types
of commercial agriculture; focus on agriculture of Vietnam and Thailand in
comparison.......................................................................................................................................................
9.1. Definition of Industrialization of agriculture:..........................................................................................
9.2. Content of Industrialization of agriculture:.............................................................................................
9.3. Application of Industrialization of agriculture:........................................................................................
9.4. Subsistence agriculture vs commercial agriculture:.............................................................................
9.5. Major types of commercial agriculture:..................................................................................................
9.6. Agriculture of Vietnam and Thailand in comparison:.............................................................................
9.6.1. Regarding crop varieties...............................................................................................................
9.6.2. Regarding industrialization in producing......................................................................................
10. International trade: Concept, factors affecting, international trade flows and
partners. Trade relationship between Vietnam and a main partner such as China,
Japan, EU: Opportunity, challenges, and solutions. (Chung)......................................................................
10.1. Concept...............................................................................................................................................
10.2. Factors affecting international trade:...................................................................................................
10.3. International trade flow........................................................................................................................
10.4. International trade partners.................................................................................................................
10.5. Trade relationship between Vietnam and major partners:...................................................................
10.5.1. China..........................................................................................................................................

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 10.5.2. European....................................................................................................................................
10.5.3. Japan..........................................................................................................................................
10.6. Questions in slides..............................................................................................................................
11. International investment: Concept, motivation for and constraints to FDI, main
impacts, flows and partners of international investment in The World Economy. FDI in
Vietnam/ other countries: Experiences and policy recommendations. (Long)..........................................
11.1. Concept of international investment....................................................................................................
11.2. FDI versus FPI: ( Câu hỏi trong slide).................................................................................................
11.3. Motivation for and constraints to FDI..................................................................................................
11.4. Main impacts.......................................................................................................................................
11.5. Flows and partners of international investment in The World Economy.............................................
11.6. FDI in Vietnam/ other countries: Experiences and policy recommendations......................................
11.6.1. Viet Nam Foreign Direct Investment...........................................................................................
11.6.2. South Korea Foreign direct investment......................................................................................
12. Services: Concept, characteristics, classification, roles for economic
development, and development of services in the World Economy. (Hồng Minh)....................................
12.1. Concept.......................................................................................................................................
12.2. Characteristics.............................................................................................................................
12.3. Classification...............................................................................................................................
12.4. Roles for economic development................................................................................................
ĐỀ THI TIẾNG VIỆT...........................................................................................................................................
Đề 1..............................................................................................................................................................
Đề 2..............................................................................................................................................................
Đề 3..............................................................................................................................................................
Đề 4..............................................................................................................................................................
True or False bổ sung....................................................................................................................................

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1. The world economy: Definition, characteristics, structure; Characteristics of
the world economy and their impacts on Vietnam’s international trade and
investment as well as making international trade policy and investment policy of
Vietnam. (Hà Linh)
1.1. Definition
The world economy refers to the global economic activity and interdependent
relationships among different countries and regions that produce, trade, and consume
goods and services. It encompasses all economic transactions, including the
production and consumption of goods and services, international trade, financial
flows, investments, and labor markets. The world economy is shaped by various
factors such as government policies, technological advancements, natural resources
and population demographics, and is constantly evolving and interconnected.
1.2. Characteristics
The world economy has several prominent characteristics, including:
Interconnectedness: The global economy is highly interdependent, with countries and
regions relying on each other for goods, services, capital, and resources.
Market-oriented: The world economy is predominantly market-oriented, with market
forces driving decisions related to production, consumption, and investments.
Technologically advanced: The world economy is powered by cutting-edge
technologies and innovations that enhance the efficiency and productivity of
businesses and industries.
Liberalized trade: The world economy is characterized by trade liberalization, with
countries actively pursuing free trade agreements and reducing trade barriers that
hinder international trade.
Multinational corporations: Multinational companies dominate the world economy,
with their operations spread across the globe and significant influence on production
and investment decisions.
Global labor market: The world economy has a global labor market, with workers
more prone to cross borders in search of employment opportunities.
Unequal distribution of wealth: There is a significant wealth gap between different
countries and regions, with some nations having more resources and economic power
than others.
Environmental challenges: The world economy is facing several environmental
challenges, including climate change, resource depletion, and pollution, which require
global cooperation to resolve.

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1.3. Structure
The world economy is an extremely complex and interconnected network of various
economies and markets. Here are some key features and components of the structure
of the world economy:
- National economies: The world economy is made up of the economies of
various countries, each with its own unique set of strengths and challenges.
- Global markets: There are many different types of global markets, including
financial markets (e.g. stock exchanges, commodity exchanges), consumer
goods markets (e.g. retail), and service markets (e.g. consulting).
- Trade: International trade plays a major role in the world economy, with
countries exporting and importing goods and services to and from each other.
- Technology: Advances in technology have greatly impacted the world
economy, with many industries being disrupted by new technologies and
innovations.
- Global organizations: There are a number of global organizations that play a
role in the world economy, such as the World Bank, International Monetary
Fund (IMF), and World Trade Organization (WTO).
- Economic policies: Policies implemented by governments, such as monetary
policy and trade policy, can have a significant impact on the world economy.
Overall, the structure of the world economy is highly complex and constantly
evolving. It is shaped by a wide range of factors, including political events, social
trends, and economic policies, and is influenced by the actions of individuals,
businesses, and governments around the world.
1.4. Characteristics of the world economy and their impacts on Vietnam’s
international trade and investment as well as making international trade policy
and investment policy of Vietnam.
The world economy is characterized by globalization and interconnectedness,
technological advancements, and shifting power dynamics among countries. These
characteristics have significant impacts on Vietnam's international trade and
investment, as well as its trade and investment policies.
Globalization and interconnectedness have resulted in increased competition among
countries in the global market. As a result, Vietnam has had to focus on improving its
competitiveness by investing in infrastructure, education, and technology to improve
productivity and reduce costs.
Technological advancements have also impacted Vietnam's international trade and
investment by increasing the speed and efficiency of trade and investment

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transactions. This has facilitated the growth of e-commerce and digital trade, which
have become important means of conducting international business.
Shifting power dynamics among countries have also impacted Vietnam's international
trade and investment. The rise of China as a global economic power has presented
new opportunities for Vietnam to expand its trade and investment relations with the
Chinese market. However, it has also heightened competition with other countries in
the region, such as Indonesia and Thailand.
To address these challenges and opportunities, Vietnam has adopted various trade and
investment policies. These policies focus on promoting exports and attracting foreign
investment to support economic growth. Vietnam has also actively participated in
regional and international trade agreements, such as the Comprehensive and
Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional
Comprehensive Economic Partnership (RCEP), to enhance its market access and
competitiveness.
In conclusion, the characteristics of the world economy have significant impacts on
Vietnam's international trade and investment, and Vietnam has responded by adopting
policies that focus on improving competitiveness and market access. Vietnam's
participation in regional and international trade agreements also reflects its
commitment to promoting free and open trade.

2. Globalization: Definition, global value/supply chain, the positive and negative

impacts of globalization on Vietnam’s economy; globalization and policy
solutions for the Vietnamese government. (Khương Huyền)
Globalization is a multifaceted phenomenon that has significantly influenced the
economies of nations worldwide. This essay aims to explore the concept of
globalization, its effects on Vietnam's economy, and propose policy solutions for the
Vietnamese government. By examining the global value/supply chain, positive and
negative impacts, and policy recommendations, we can gain insights into Vietnam's
integration into the global economy.
2.1. Globalization: Definition and Global Value/Supply Chain
Globalization refers to the interconnectedness and integration of economies through
increased cross-border trade, investments, and technological advancements. One of
the key components of globalization is the global value/supply chain, which involves
the production and distribution of goods and services across multiple countries.
2.2. Positive Impacts of Globalization on Vietnam's Economy
Globalization has brought several benefits to Vietnam's economy. Firstly, it has
opened up opportunities for foreign direct investment (FDI). Multinational

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corporations have established manufacturing facilities and service centers in
Vietnam, contributing to job creation and technology transfer. FDI has been a
catalyst for industrial development and modernization in the country.
Secondly, globalization has led to an expansion of Vietnam's export-oriented
industries. The country has become an important player in global supply chains,
particularly in sectors such as textiles, electronics, and manufacturing. This has
boosted Vietnam's export revenue, increased foreign exchange reserves, and
stimulated economic growth.
Thirdly, globalization has facilitated knowledge and technology transfer. Through
partnerships and collaborations with international companies, Vietnam has gained
access to advanced technologies, management practices, and research and
development capabilities. This has enhanced productivity, efficiency, and innovation
within the country.
2.3. Negative Impacts of Globalization on Vietnam's Economy
Despite the positive aspects, globalization has also presented challenges to Vietnam's
economy. One of the major concerns is the vulnerability to economic downturns in
the global market. As a highly open economy, Vietnam is exposed to external
shocks, such as financial crises and trade disruptions. These fluctuations can impact
domestic industries, employment rates, and economic stability.
Moreover, globalization has contributed to income inequality within Vietnam. While
the country has experienced overall economic growth, the benefits have not been
distributed equally among all segments of society. Disparities in income and wealth
have widened, leading to social and economic imbalances.
2.4. Globalization and Policy Solutions for the Vietnamese Government
To maximize the benefits of globalization and mitigate its negative impacts, the
Vietnamese government can implement several policy solutions:
Enhancing human capital development: Investing in education and vocational
training programs to equip the workforce with the necessary skills for the evolving
global economy.
Promoting innovation and research and development: Supporting domestic research
and development initiatives to foster innovation, technological advancement, and
product diversification
Strengthening social safety nets: Implementing policies to address income inequality
and protect vulnerable groups in society, ensuring that the benefits of globalization
are distributed more equitably.

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Developing infrastructure: Investing in infrastructure projects to improve
connectivity, logistics, and transportation networks, enhancing Vietnam's
competitiveness in the global market.
Fostering sustainable development: Incorporating environmental sustainability into
economic policies and practices to mitigate the negative environmental impacts of
globalization.
In conclusion, globalization has had a profound impact on Vietnam's economy, both
positive and negative. It has facilitated foreign direct investment, boosted export-
oriented industries, and facilitated knowledge transfer. However, challenges such as
vulnerability to external shocks and income inequality have also emerged. By
implementing appropriate policy solutions, the Vietnamese government.

3. Deindustrialization: definition, causes/factors, and economic and social

impacts; Deindustrialization and Vietnam. (Khánh Trang)
3.1. Definition
Deindustrialization is a consistent decrease in the size of a country's manufacturing
sector in the total economy. It is the process by which manufacturing declines in a
society or region as a proportion of total economic activity. It lead to decline in
manufacturing employment resulting from reducing or destroying industrial capacity.
3.2. Causes/factors of deindustrialization
+ First of all is Technological Advancements. With the rapid development of
technology, particularly automation and efficiency-enhancing technologies,
have significantly increased productivity in manufacturing. Which increases
output, however, machinery replaces workers, resulting in job losses.
+ The second is a change in the economic structure from a manufacturing-based
model to a service-based one, reducing the significance of traditional industrial
sectors.
+ The third is Globalization and Offshoring. The expansion of international trade
and the liberalization of markets have made it easier for companies to relocate
production to countries with lower labor costs. This offshoring or outsourcing
of manufacturing has significantly contributed to deindustrialization in many
regions.
+ Fourth is changing consumer spending patterns. Industrialization brings
prosperity to developed countries. With a higher standard of living, many
consumers in developed countries spend most of their extra income on services
rather than goods. Demand for services such as tourism, restaurants,

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 information technology, and financial services is increasing rapidly. But, on the
other hand, they also enjoy cheaper manufactured goods due to increased
productivity in the manufacturing sector and getting goods cheaper from
imports. As a result, spending on manufactured goods as a % of GDP declined.
On the other hand, spending on services increased.
+ Lastly, government policies are causing deindustrialization by various taxation,
labor laws and regulations refers to environment which directly restrict those
manufacturing companies to limit their activities. With unfavorable policies,
many companies will relocate their factories to other countries for better profit.
3.3. Economic and social impacts of deindustrialization
● Positive impacts
Better standard of living: Deindustrialization takes place because the economy has
matured and has reached the full potential of industrialization. Productivity in the
manufacturing sector grew faster than in the service sector. It brings more prosperity
into the economy, as it does in developed countries. In addition, consumers can access
cheaper manufactured goods.
Encouraging sustainable economic growth: Deindustrialization has important
implications for long-term economic growth in developed countries. They have to find
new growth engines to grow the economy. Since their capital-labor ratio is already
high, they can no longer rely on capital deepening by increasing the capital-labor ratio
for growth. They have to invest in technological advances. Thus, developing strategic
service industries, such as research and development and education, is the key to
innovation in technology.
More income in destination countries: Some companies outsource their
manufacturing overseas and focus on services because they provide more long-term
benefits. They can also save costs by relocating factories to low-wage countries or
close to sources of raw materials. Improvements in welfare also take place abroad.
Increased offshoring brings more income and jobs to destination countries, not just
profits for manufacturers. Factory relocation brings capital inflows to the destination
country. For example, a US manufacturer shifted its production facilities to Indonesia.
This has a positive impact on the Indonesia economy, both on economic growth,
employment, and income.
Reduced environmental degradation in the domestic economy Manufacturing
activities contribute to high carbon emissions, which damage the environment. For
example, in 2019, they accounted for about 23% of greenhouse gas emissions in the
United States, some of which came from burning fossil fuels for energy. Thus,
reduced manufacturing activities reduce pollution and carbon emissions to the
environment. But, it actually only happened in the home country. For example,

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suppose a manufacturing company moves its production facilities overseas. In that
case, it means moving carbon emissions from the home country to the destination
country.
● Negative impacts:
The significant impact of deindustrialization is job loss. Today's factory jobs are
done by machines with high productivity and without labor. As a result, millions of
people working in the manufacturing sector will lose their jobs. This can lead to
increased unemployment rates, income inequality, and a decline in the standard of
living for affected communities.
Deindustrialization reduces potential sources of government tax collection, which,
in turn, could lead to cuts in public services in the region. Some regions rely on
manufacturing to support their economic growth. If many factories moved to other
countries, they could become a dead city.
The social consequences of deindustrialization are significant. Increased poverty
rates, reduced social mobility, and a sense of community dislocation are often
observed.
Environmental threats in destination countries for manufacturing investments.
When manufacturers move their factories overseas, it means they move pollution to
the destination country, usually a developing country. Problems can become serious
for two reasons.First, the destination country does not have adequate environmental
policies or regulations. Second, because managing pollution incurs costs, loose
environmental policies give manufacturers more flexibility.Then, on the other hand,
the destination country encourages investment from foreign manufacturers to continue
to enter. They seek to promote economic growth and create more jobs for their
citizens. Due to the low capital per worker ratio, foreign inflows allow them to enjoy
high economic growth. But, it can also accelerate environmental degradation due to
weak oversight and regulation.
3.4. Deindustrialization in VietNam
Deindustrialization in Vietnam has been a notable trend in recent years, reflecting
changes in the country's economic structure and the shifting dynamics of global
manufacturing. Several factors contribute to the deindustrialization process in
Vietnam:
Globalization and Outsourcing: Vietnam's integration into global markets has led to
the relocation of manufacturing activities to countries with lower labor costs, such as
China and other Southeast Asian nations. Many multinational companies have
established production facilities in these countries, resulting in a decline in
manufacturing activities in Vietnam.

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Rise of Service-Oriented Industries: The Vietnamese economy has experienced a
shift towards service-oriented industries, such as finance, tourism, and information
technology. These sectors have been growing rapidly and attracting investment,
leading to a relative decline in the industrial sector's contribution to the overall
economy.
Technological Advancements and Automation: Advancements in technology and
automation have reduced the labor-intensive nature of manufacturing processes. As a
result, fewer workers are required to produce the same output, leading to a decrease in
industrial employment and the overall importance of the manufacturing sector.
Economic Restructuring and Policy Changes: Vietnam has implemented economic
reforms and policy changes to promote economic diversification and attract foreign
direct investment. This has led to a focus on developing high-tech industries,
promoting innovation, and enhancing the competitiveness of the country's economy.
As a result, there has been a shift away from traditional manufacturing industries.

3.5. The deindustrialization process in Vietnam is evident through various

indicators:
Employment Composition: The employment composition has shifted away from the
industrial sector. According to data from the General Statistics Office of Vietnam, the
share of employment in industry and construction decreased from 28.6% in 2010 to
25.8% in 2020, while the service sector's share increased from 38.4% to 42.8% during
the same period.
Foreign Direct Investment (FDI) Patterns: While Vietnam continues to attract FDI,
there has been a diversification of investment into sectors beyond manufacturing. FDI
inflows into service-oriented industries, such as finance, real estate, and technology,
have increased, indicating a changing investment landscape and a decreased focus on
traditional manufacturing sectors.
Changing Manufacturing Output: Although manufacturing output in Vietnam has
experienced growth, there are signs of a slowdown. The growth rate of manufacturing
output has decreased in recent years, indicating a potential deceleration in the
industrial sector. For example, the World Bank's data shows that manufacturing grew
by 14.4% in 2017 but slowed to 9.8% in 2020.
It is important for Vietnam to address the challenges posed by deindustrialization and
capitalize on opportunities for economic diversification and technological innovation.
The government's efforts to promote high-tech industries, invest in infrastructure, and
improve the business environment are aimed at mitigating the negative impacts of
deindustrialization and ensuring sustainable economic development.

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4. Dynamics of manufacturing sectors (Automobiles, textiles and garments,
electronics): global trend, roles, and characteristics; Vietnam in the global
garment and textile value chain; Vietnam in the global automobile value chain;
Vietnam in the global electronic value chain; and policy solutions for the
Vietnamese government. (Tuấn)
4.1. Textile
Global trend of the textile and garment industry
The global roles of the textile and garment industry are undergoing a significant shift,
marked by deindustrialization. This trend is characterized by the industrial decline of
major textile-manufacturing regions, such as Europe and North America, while
emerging economies like China have steadily increased their production capacity and
market share. These factors undermine the traditional industrialized nations'
manufacturing capabilities and render them less competitive in the global trade
landscape. The effects are far-reaching, as job losses become an inevitable reality for
many unskilled workers whose jobs are outsourced to other countries. In addition to
these challenges, environmental degradation is also a pressing concern within this
sector. However, despite these issues, there are opportunities for innovation with new
technologies that can mitigate some of these negative impacts while promoting
sustainable practices in the industry.
One such opportunity for innovation is the use of sustainable materials in textile and
garment production. With the rise of eco-conscious consumers, there is a growing
demand for clothing made from environmentally friendly materials such as organic
cotton, bamboo, and recycled polyester. This shift towards sustainable materials not
only benefits the environment but also presents a unique marketing opportunity for
companies that can differentiate themselves from their competitors by offering eco-
friendly products. Additionally, advancements in technology have made it possible to
produce these materials at a larger scale, making them more accessible and cost-
effective for manufacturers. By embracing sustainable practices, the textile and
garment industry can not only reduce its negative impact on the environment but also
create new business opportunities and remain competitive in the global market.
Global roles of the textile and garment industry between 2008-2022
Important indicators of Textile and garment industry
● Contribution to GDP
The current global apparel market is estimated at $1.7 trillion which forms
approximately 2 percent of the world GDP of $73.5 trillion. Apparel consumption in
the top 8 economies constitutes approximately 70 per cent of the global consumption.

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All four BRIC(Brazil, Russia, India, China) nations appear among the top markets
having a cumulative share of approximately 23 percent. Combined apparel
consumption of the US and the EU is 40 percent while they are home to just 11
percent of the world population, implying a very high level of per capita expenditure
on Apparel (PEAP) compared to the rest of the world.
● Export-import turnover
Ngành Dệt (Textile)
According to data from Trademap, China has led the Textile and Garment market for
the last decade, and in both Export and Import areas. At the begining, China had taken
account for a third of Global Exporting quantity for textile materials, between 8 to 15
billion dollars. And this figure has increased rapidly since 2012, averaging 1 billion
each year. In contrast, despite showing a constant rise in Exporting, Vietnam with
about 100 million increase annually, only contributed roughly 3% in Global Export in
2021. And ranked 8th in Textile Exporter, followed by USA and Germany.
Similarly to Export, China had still taken leadership in Importing Textile materials
until 2015 and before losing it to Vietnam. Within the last 5 years, Vietnam has spent
about 3 billion dollars annually for Textile materials, equal to a tenth of Global one.
Meanwhile this expense in China is nearly 1 billion lower.
Ngành May (Garment)
In the field of Garment imports, Vietnam ranks third only after China and the US.
Because Vietnam spent about 1.5 billion USD in the first years and rapidly increased
in the following years. Finally, by 2021, the total amount of money Vietnam spent on
Importing Garment has reached more than 3 billion USD, double the original amount.
And it is equal to ⅛ total imports of the world.
Vietnam's textile and garment exports account for 5.2% of the global market share. In
2021, Vietnam ranked 8th in the top 10 garment exporting countries (after China, EU,
Bangladesh) and 7th in textile exports in the world (after China, EU, India, Turkey) ,
Pakistan and the United States).
However, the biggest limitation of the textile and garment industry, according to, is
the relatively large proportion of imported raw materials. We import a lot of fabrics,
cotton, accessories..., mainly from China (over 51%), Korea 9.7%, EU 11.3%, USA
6%... Especially in the RCEP import block textile and garment accounted for 71.6%
of the total import turnover.
● Employment creation/ Job creation
The average income of employees in the industry is about 8.5 million
VND/person/month, generating an income of 200,000 billion VND/year (about 8.6
billion USD/year), if including trade in services, it is 13 billion USD. /year. With the

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characteristic of being the most labor-intensive economic sector (2.5 million workers
participate in the textile and garment industry, accounting for 10.31% of the current
industry's workforce), FTAs, especially TPP Not only creating a driving force for this
industry to develop faster, but also helping Vietnam have the opportunity to create
jobs, stabilize social security for millions of domestic workers, because this is the
industry that needs the biggest labor force.
Opportunities open up in the EU market:
Opportunities from the reduction of tax lines: The Vietnam - EU Free Trade
Agreement is having certain impacts on the long-term vision of many countries;
including Vietnam with the orientation of sustainable development of the textile
industry. EVFTA is forecasted to have a positive impact on Vietnam's textile and
apparel industry in the long term, when up to 42.5% of tariff lines applied to this
industry will be eliminated as soon as the Agreement comes into effect. the rest will
be eliminated import tax according to the roadmap from 3 to 7 years. This will help
Vietnam's textile and garment increase its chances of competing with products that are
enjoying the 0% GSP from Bangladesh and Cambodia. The tax cuts that reduce
production and export costs also contribute to creating favorable conditions for
businesses to boldly invest in production and promote the export of products to the EU
market. Thereby creating many job opportunities for the textile export industry.
So, in general, the level of competition in the textile and garment industry is relatively
high. According to the requirements of initial investment capital and low skilled labor,
the number of enterprises in the industry is relatively large and the products are not
too different.
4.1.3. Global characteristics of textile and garment industry between 2008-2022
Raw materials for the textile and garment industry are cotton, jute, wool, raw silk, and
synthetic goods. These materials can be exported most in China. China is currently the
world's largest global textile exporter, with the textile industry developing rapidly
after the 20th century. There are eight main categories in China's textile industry,
which are chemical fabrics, fabrics. cotton, woolen fabrics, silk fabrics, knitted
fabrics, looms, yarns and high-quality garments. Current estimates of world cotton
production are around 25 million tons or 110 million bales of cotton annually, which
is 2.5% of the world's arable land. India is the world's largest cotton producer. So most
cotton is imported from India.
Textile accessories: Types of buttons, mex and zippers, also for dye colours. Must
import in large quantities and supply mainly from China. In 2021, China was the
leading exporter of clothing accessories to the rest of the world, with an export value
of around 13.4 billion U.S. dollars. Italy, ranking second, exported over two and a half
billion U.S. dollars worth of clothing accessories that year.

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Textile production in international trade has emerged as an important segment since
the Industrial Revolution. In 2020, covid-19 negatively affects the textile industry as
well as all other industries all around the world. With the elimination of the
devastating effects of the pandemic by 2021, textiles world exports increased by 4.6%
over the previous year and reached 381.3 billion dollars, even exceeding the pre-
pandemic figure. When looking at the world trade of textiles, the top exporting
countries by their share of the world market are China (35.0%), India (6.9%), USA
(5.3%), Türkiye (4.2%), and Germany (4.1%).
Human resources: Textiles are one of the largest labor-intensive industries today. The
number of machines and equipment is used a lot, so the amount of labor also requires
a correspondingly large number of production participants. New highly qualified
human resources can take full advantage of the capabilities of machines and
effectively apply production technology. Most of human labor comes from Asia
because of the cheap cost for outsourcing, hiring and having abundant human
resources.

4.1.4. VIETNAM
Most Vietnamese garment producers undertake cut-make-trim (CMT) tasks which
accounted for 85% (VITAS, 2021). This constitutes the labour-intensive cutting and
tailoring processes as well as packing and (usually) delivery. Firms operating on CMT
supply thread while buyers supply fabrics. In functional terms, CMT is the most basic
form of garment manufacture, and CMT payments cover labour costs, managerial
costs, electricity, trading expenses and the firm’s profit margin. Therefore, the added
value of exported textile and garment products is still low, only about 25% of the
export turnover, the profit rate is only about 5-10%, and must be imported to 70-80%
of materials. Export by FOB method is only about 38% and only 2% export is carried
out by ODM method. Vietnamese enterprises exporting goods under FOB are also
mainly at FOB I level, so the added value of the industry is still low. The export rate
of garment products by FOB, ODM, and OBM methods is still low because Vietnam's
textile and garment industry is not active in the source of raw materials, the ability to
manage and mobilize capital, so it has not yet fully exploited the benefits.
Before 1998 was the period of formation, laying the foundation for the development
of the textile industry in Vietnam with the investment in many small and medium-
sized textile factories. Since 1998, this industry has been in a developing period with
the expansion to markets around the world with the participation of many international
trade organizations such as APEC, WTO. During this time Vietnam was also in the
process of joining many bilateral and multilateral trade agreements.

15
Textiles have high export turnover but low value-added. It contributed about 12% of
the total export turnover in recent years. The export value of textiles and apparels in
2020 reached 29.8 billion USD, however, the pre-tax profit that enterprises earned
was only about 3.07%, which is quite low compared to other manufacturing and
processing industries such as food (6.23%), electronic products, computers (5.16%) or
beverages (16.9%).
Vietnam’s textile and apparel industry has a high employment rate with about two
million employees, accounting for 25% of the entire processing and manufacturing
industry. However, the majority of workers in the textile and apparel industry are
unskilled laborers performing low value-added activities,
The supporting industry of textile and garment is the production of raw materials,
auxiliary materials, accessories and manufactures machinery and equipment for the
industry. Currently, the textile and garment auxiliary industry in Vietnam only
provides 30% of the demand for fiber, 0.2% of the demand for cotton, the rest must be
imported from the US, China, and Taiwan. Yarn output is 1.4 million tons a year, of
which export accounts for 70% due to its low quality, which cannot meet domestic
demand. Yarn products and domestic fabric production are not diversified and of low
quality, so only 20-25% is used for the output of the export garment industry. In co
Most domestic textile and garment enterprises are small and medium-sized, with
outdated technology, diverse designs, unsatisfactory quality, but high prices. The
source of raw materials for the textile industry is currently imported 60% from China.
In compared to Textile and Garment industry, The auto industry also develops with a
large amount of investment but the localization rate is still low, the cost to assemble
and complete the car in the country is 10% - 20% higher and the selling price is 20%
higher compared to other countries in the region. After 30 years, the supporting
industry of Vietnam's automobile industry can only produce 287 parts out of about
20,000 - 30,000 components to assemble into a complete car.

4.1.5. Solutions for Vietnam governments

· Strengthen the capacity of the management agency to forecast market demand
· Facilitate and support textile enterprises to directly approach potential
customers through participation in exhibitions, trade promotion, investment,
market development, organizing classes training on e-commerce development,
digital transformation, business connection.
· Promote and diversify trade promotion activities; provide regular, complete
and accurate market information in a timely manner, develop a plan to develop
Vietnamese textile and garment brands

16
 · Promote, popularize and raise awareness for businesses about the impact of
Free Trade Agreements, help businesses limit risks, support and encourage
businesses to make the most of the benefits provided by free trade agreements.
Strengthen the propaganda and consultancy on international trade law; Strategies
for sustainable development
· To help businesses meet the requirements in new-generation FTAs like
EVFTA, CPTPP, government should support and develop domestic raw material
supplying areas, aid the supporting industries development to supply domestic raw
materials for businesses so that they can meet the fulfill the rules off origin. In
terms of policies, government should encourage in general terms of taxes, land, ...,
especially for the textile and dyeing industry
· Government should help businesses better meet the standards of TBT, SPS by
providing market information, requirements of the production chain; training
workers; supporting the cost of pre-inspection to ensure that the goods meet the
requirements so that businesses will not be worried about unsatisfactory goods
being returned.
4.2. Electronics
Global trends
The electronics industry is the economic sector that produces electronic devices. It
emerged in the 20th century and is today one of the largest global industries.
The global electronic industries are the fastest-growing sector, worth trillions of
dollars, and play a critical role in driving consumers to purchase innovative and smart
electronic products. Electronic industries have always been at the forefront of the most
recent technological innovations to reduce costs and improve efficiency with such a
large future market potential. Many SMEs have found it challenging to keep up with
the trends/changes as technology has advanced faster.
Current global trends:
Automation in industrial production and the ‘Industrial Internet of Things’ are among
the key trends in the electronics industry, as today’s world is increasingly relying on
technology.
The major electronics manufacturing trends include the use of advanced materials,
organic electronics, and miniaturization. Besides, disruptive technologies like
Artificial Intelligence (AI) and the Internet of Things (IoT) enables smart
manufacturing practices and also are the growth drivers for the industry. Along with
organic electronics, the top electronics manufacturing trends improve the efficiency,
durability, and sustainability of industrial and consumer electronics.

17
Globally, the electronics industry is projected to contract by around three percent
between 2019 and 2020, before rebounding in 2021, and Asia is anticipated to fare
best. Asia's powerhouse, China, is the largest market worldwide with market revenue
of around 1.7 trillion euros. In 2021, the electronics market in China grew by eight
percent year-on-year.
Vietnam:
· The electronics industry is a manufacturing industry, has a key position in the
economy and has a strong spillover effect on other industries.
· Dominated by multinational businesses, EI has significantly boosted
Vietnam’s trade volume and contributed to its GDP in the past decade.
· Vietnam's electronics industry currently accounts for 17.8% of the entire
industry, mainly producing electronic products, computers and optical products.
· The electronics sector has seen major improvements over the years, especially
during the 2016-2020 period. With a 24% annual growth in electronics production
over the five-year period, Vietnam ranked 12th globally from 47th in 2001 and
third in ASEAN for electronics exports.
Global roles of the electronics industry in the economy
- Economic indicators
The electronics industry in Vietnam has a key position in the economy and has a
strong impact on other industries. Vietnam's computer and electronics industry
accounts for 17.8% of the entire industry. Products of our country's electronics and
informatics industry are mainly electronic components, components for phones,
televisions, computers,...
Electronics and computers continue to maintain Vietnam's 2nd export position
Thanks to the impressive growth rate, electronics, computers and components
have surpassed textiles and apparel to become Vietnam's second largest export group
from 2019 to now.
In 2019, the export value of electronics, computers and components reached US$36.3
billion, officially surpassing textiles (export value of US$32.8 billion) to become an
export group of goods.
By 2020, although the economy is greatly affected by the Covid-19 epidemic,
this group of goods still achieves a high and stable growth rate, it is estimated that the
export value will continue to increase sharply, reaching 44.6. billion USD, accounting
for 15.8% of total export turnover, far exceeding textile and garment exports in terms
of value, growth rate and proportion (textiles and garments reached USD 29.8 billion,
accounting for 10 5%).

18
Due to the impact of the Covid-19 epidemic and regulations on social distancing in
many countries, consumers in many countries need to use communication, online and
online working means increased sharply, along with the shift in value chains of some
major electronics firms in the world. In the period of the end of 2020 and the first half
of 2021, domestic electronic enterprises also have access to many new orders. In
2021, the export turnover of phones and components will reach 57.5 billion USD, up
12.4% over the same period in 2020; computers, electronic products and electronic
components reached US$51 billion, equivalent to an increase of 14.4% over the same
period in 2020.
- Social indicators
In addition, the number of jobs in the electronics industry increased 7 times in 8 years.
From 46,000 employees in 2005 to 327,000 employees and about 500,000 employees
in 2016. In recent years, our country's electronics industry has developed rapidly,
becoming the destination of many large technology enterprises such as: Samsung, LG,
Intel,….
Electronics manufacturing took up 8.66% of all job opportunities available in Vietnam
in 2021, the largest among all industry sectors in the country. The electronics
manufacturing industry recorded an average monthly wage of 7.20 VND million
(US$307.6) in 2021, higher than those for garment and machinery manufacturing.
According to Vietnam Chamber of Commerce and Industry (VCCI), the electronics
manufacturing industry accounted for one-third of Vietnam's total exports of US$108
billion in 2021. It hired 1.3 million workers in 2021 and a majority of them did low-
skill jobs. Besides, about 5% of employers in the industry indicated that workers
failed to meet basic skill requirements.
=> The electronics-informatics industry plays a key role in the modern industrial
system in order to bring the information society being formed and developed to a new
high level.
The manufacture of IC circuits, microprocessors, memory and other sophisticated
components of the electronics-informatics industry has contributed to the world
economy, creating a historic turning point in the transformation of the world economy
from an industrial economy to a knowledge economy. The fields of using products of
the electronics-informatics industry are very diverse, from scientific research, material
production (industry, agriculture), financial activities, marketing, e-commerce to state
management (e-government), education (e-education...).
The electronics-informatics industry not only increases the efficiency of all kinds of
activities, but also changes the way of working and social life to a very large extent.
Global characteristics of the electronics industry

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- The electronics industry produces electronic products, which can be divided into 6
segments:
+ Semiconductor supply and manufacturing services: This segment does design and
manufacture work, and supplies everything related to semiconductors including
electrical components and integrated circuits that are common in many electrical and
electronic devices.
+ Industrial Equipment: This segment manufactures equipment that assists in
industrial processes. Equipment can range from industrial robots, automation and
control systems, wafer-processing equipment, semiconductor assembly and packaging
equipment, electronic testing and measurement equipment, etc.
+ Networking and Communication Equipment: This segment comprises
manufacturers of consumer and industrial networking hardware and other
communication equipment.
+ Computer and Office Products: These are producers of a wide range of business-
related electronic equipment like copiers and fax machines, and computing equipment
including personal computers, servers, mainframes, and workstations.
+ Medical Devices: This segment deals with the manufacture of electro-medical
equipment used in diagnosis, surgical procedures, medical imaging, forensics, and
medical research and training.
+ Consumer electronics and home appliances: This is a major segment in the
electronic industry and produces consumer products such as Televisions, radios, DVD
players, video gaming systems, mobile phones, cameras, electric ovens, etc. They also
produce home intercommunication and alarm systems.
Production characteristics:
+ Less pollution to the environment, not much consumption of metals, electricity,
water, not occupying a large area. However, the most important requirement of the
electronics industry is the availability of skilled manpower. This is because of the
essence of assembling techniques and innovation in this industry. For example:
Microsoft Corporation already made a name for themselves in operating systems and
software. But in order to stay competitive with other producers, they need to gain
Advancements in Technology. So that they need workers who are intelligent and have
high education in Tech fields to innovate and update their products.
+ The standard in this industry is high. Some electronics products are applied with
uniform standards for its manufacturing. For example, certificates and standards of
raw materials are The European RoHS Directive (Restriction of the use of certain
hazardous substances) regulates the incorporation of toxic and/or persistent substances
in equipment and components, in particular: Lead, Mercury, Cadmium, Hexavalent

20
Chromium, Polybrominated Biphenyls (PBB), Polybrominated Diphenyl Ethers
(PBDE).
+ Global sourcing is common. GVCs in the electronics industry are more
geographically extensive and dynamic than in any other goods-producing sector. It is
relatively easy for electronics firms to engage in the twin strategies of outsourcing and
off-shoring. Factories can be relocated with relative ease and produce a wide variety
of end products.
+ Although China doesn’t have many Tech companies or Electronic producers, in
2020 China ended up as the largest electronics exporter globally, Taiwan ended up in
a distant second place and the USA in third. Vietnam has climbed the ranks as a key
electronics exporter, from a modest 47th place in 2001 to 12th place in 2019 and 7th
place in 2020. Mobile phone exports were ranked second worldwide, with a value of
over US$50 billion in 2019. As Vietnam became ressemble for other electronic
producers in other countries.
Vietnam began to participate strongly in the 3C value chain in the electronics industry
since 2010 (including components, assemblies, and finished products) and has become
the world's electronic component assembly center. . In the group of electronic
components, Vietnam's role in the global electronic value chain is limited to its role as
an integrator of components. But in the finished product group of Vietnam's
electronics industry, mainly manufacturing communication equipment and leading
consumer electronics. In terms of global value chains, the market is divided into three
parts, including upstream, midstream and downstream activities. Vietnam mainly
integrates in the midstream with lower added value, including small assemblies such
as displays and special parts, and finished products such as consumer electronics,
communications and computers.
China is the world's manufacturing center for electronic products such as TVs,
computers, handheld devices and other electronic devices. As a result, China's output
of some electronic components is the highest in the world, especially for common,
medium and low-end electronic components.
Thailand is one of the largest electronics assembly bases in Southeast Asia with more
than 2,300 companies with 400,000 employees. The world leader in the production of
hard drives, integrated circuits and semiconductors, Thailand is also the largest
production base in ASEAN in the field of household electronics such as electrical
appliances, air conditioner manufacturers. 2nd largest in the world and 4th largest in
terms of refrigerators. Thailand's electronics industry is mainly export-oriented,
accounting for about 90-95% of production. Thailand's strength in many products
such as radios, televisions and printers will continue to support the country's exports
in the coming years.

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Policy solutions to Vietnam government
Building a strong domestic business force in electronics industries with a focus on
developing domestic enterprises and attracting FDI as a means, selectively attracting,
with the purpose to serve the goal of developing domestic enterprises through the
following main solutions:
Firstly,
in order to be able to compete on price in the early stages of market
penetration, the government needs to design a system of policies to support
credit, tax incentives, and purchase price incentives within the framework of
purchasing projects procurement for Vietnamese-branded products (Applicable to
products distributed to the domestic market based on a turnkey solution
transfer agreement from a foreign partner. These policies are very important,
allowing businesses to execute market development strategies wisely with a
focus on testing the market at an early stage before investing in research and
development. , localizing products that have been accepted by the market),
supporting branding and promoting domestic consumption through campaigns such as
"Vietnamese people use Vietnamese products".
Secondly, implementing support programs to improve technology capacity through
research grants, research cooperation, technology transfer from universities and
institutes to domestic enterprises in the field of electronics.
Third, have policies to attract, treat and use Vietnamese experts and scientists
abroad, especially in countries with a developed electronics industry, to work
in enterprises. , schools, institutes in the country; support training and
research cooperation activities with the participation of overseas Vietnamese
experts and scientists to accelerate the transfer of knowledge and experience into the
country.
Fourth, have investment incentives to attract investment in building research,
development, trial production, testing and inspection centers in the field of
electronics to serve start-ups and entrepreneurs. domestic small and medium
enterprises in research, development, trial production, testing and verification of
electronic products.

22
Fifth, there are investment incentive policies to encourage and attract investment in
the production of industrial products that support the electronics industry to help
accelerate the closing of the domestic supply chain, thereby improving the
competitiveness.

4.3. Automobile
1.Global trends
During the period 2008 - 2022, the global automotive industry experienced
significant fluctuations in production output and market share. This was due to a
range of factors, including economic conditions, changes in consumer
preferences, and advancements in technology.
The market share of the global automotive industry has shifted significantly
during the period from 2008 to 2022, with emerging markets such as China and
India experiencing significant growth, while more established markets such as
the United States and Europe have seen their market share decline. The emerging
markets have played a crucial role in the growth of the automotive industry
between 2008 and 2022. China, in particular, has emerged as a dominant force in
the global automotive industry. Chinese automakers have made significant
investments in research and development, and they are producing cars with
advanced technologies at competitive prices. Other emerging markets, such as
India, Brazil, and Russia, have also experienced significant growth in their
automotive industries. The industry has experienced remarkable growth, driven
by emerging markets, technological advancements, and regulatory changes. The
industry has become more globalized, competitive, and sustainable, with a
growing emphasis on EVs and cleaner technologies. The future of the industry is
likely to be shaped by continued technological advancements and the ongoing
shift towards sustainability.
Trend towards 2030:The car of the future is electrified, autonomous,
shared, connected and yearly updated = “eascy.” The mobility of the future will
be much easier, more flexible and more individual for users. The car of the future
will be used and shared - "on demand".
electrified: The transition to emissions-free individual mobility would hardly be
possible without the electrification of the drive train.
autonomous: The rapid progress made in areas such as artificial intelligence,
machine learning and deep neural networks make it possible to achieve what
until recently seemed utopian – namely the development of autonomous vehicles,
which require no human intervention even in complex traffic situations.
shared: It will no longer be necessary to search for a shared vehicle in the

23
surrounding area: instead it will be possible to order vehicles to wherever the
user happens to be via a convenient “on demand” service.
connected: In future, they will be able to communicate, work, surf the internet or
access multi-media services during the journey.
yearly updated: The development topics of electrified, autonomous, connected
and shared will lead to a clear increase in the rate of innovation within the
automotive industry.
The increasing penetration of autonomous vehicles will have a very positive
impact on sharing concepts. China could become the leading market for the
transformation of the automotive industry. Urban areas are destined to see the
widespread proliferation of shared and electric vehicles.
Younger, technically savvy generations will play a key role in driving the
transformation of the automotive industry. Chinese users represent the greatest
demand and acceptance of future forms of mobility
The foreseeable trends of social personas suggest that autonomous and shared
mobility will increase greatly by 2030. New car sales may rise by 30% in the US,
China and Europe. 55% of all new car sales in Europe may be fully electrified by
2030.
It is estimated that autonomous vehicles will account for 40% of the personal
mileage driven in Europe in 2030. Personal mileage is estimated to rise by 23%
by 2030 to 5.88 trillion kilometres in Europe. The usage intensity and service life
of vehicles is expected to change dramatically as a result of electrification and
sharing.
Five of the top 20 companies with the highest R&D investment are vehicle
manufacturers, but they do not feature among the 10 most innovative enterprises.
Between 2020 and 2025 the industry will have to find ways of compensating for
falling margins and rising investment. Manufacturers and suppliers should put
users at the heart of their business model and offer them “eascy” mobility
solutions.
2.Roles Economy

The automotive industry produces products that meet the mobility needs of
people and the economy.
According to the development trend, when the income of individuals increases,
they tend to prioritize the use of modern products with quality and safety
assurance.
On the other hand, the automobile industry is considered as one of the leading
industries, leading to the development of other industries. The automobile
industry is a "customer" of many related industries such as metal, mechanics,

24
electronics, chemicals, etc.
The development of supporting industry in the auto industry will create more
conditions for economic integration and participation in the global value chain.
The effective development of the supporting industry of the auto industry will
facilitate the expansion of the ability to attract foreign direct investment (FDI),
contributing to sustainable growth.

Maintaining and gradually developing the automobile industry plays an

important role in the development of the country's economy, specifically:
Create spillover effects in industries, participate in the successful implementation
of the process of industrialization and modernization of the country.
Meeting the explosive demand for car use in the period of car universalization
Automotive products will be more and more popular and become indispensable
needs of people. A country is considered to enter the "motorization" stage when
on average there are more than 50 cars/1,000 people. In a broad sense,
motorization is the process by which automobiles become popular and become
an essential means of people when income is increased. In a narrow sense, it was
an explosive period of demand for owning and using passenger cars under 9
seats. This is also the trend of most countries in the world.
Limiting the trade deficit

With the forecast of automobile demand of our country in 2025 according

to the average plan of about 800-900 thousand vehicles and about 1.5-1.8 million
vehicles in 2030, 3 scenarios can be given for simulation and calculation.

In order to benefit from the aforementioned inevitable motorization trend,

Vietnam needs to increase the market share of domestically produced vehicles
with a high localization rate. In other words, if there is no domestic automobile
industry, in the long run, the State needs to solve the problem of foreign currency
balance to ensure a large amount of foreign currency to import cars and spare
parts in the long run. future.

b. Society
The contribution of the automobile industry to the development of the whole
industry, to the economy and to society is an obvious fact recognized in most
countries with a developed automobile industry. Along with the development of

25
 the automobile industry is an opportunity to attract capital, advanced production
techniques and technologies as well as modern business and management
experience of industrialized countries. jobs for hundreds of thousands of workers
with high skill levels, good sense of discipline of industrial labor.

c. Environment
Sources of pollution in cars are formed from three main sources: polluted air
outside, objects in the car, and chemicals used by people in the car.
The first is from the outside source of polluted air that is sucked into the car by
the air conditioning system, but the air filter can hardly filter out all those
harmful substances; Second, from objects in the car, such as plastic items,
upholstery materials, glues, paints and molds attached to the air-conditioning
filter, and self-generated mold in the corners of the car; The third is the
chemicals we put into the car by ourselves such as perfumes, car interior
cleaners, they cling to the materials in cars more and more.

3. Characteristics
1. The core product of the industry is passenger cars. As much as 90% of global motor
vehicle production is made up of passenger cars, which is not surprising considering
the important role cars play in modern society becoming increasingly mobile and
mobile. more active.
2. Global form of competition. Major regional and national automotive markets are
largely integrated into the global automotive market, where the largest multinational
corporations operate. In addition, today competition becomes transnational.
3. Industry life cycle – maturity. Currently, the global auto industry is operating in a
situation of oversupply and excess production capacity, increasing the intensity of
competition and reducing the profit margins of companies.
4. The important factors determining competitiveness in the industry are: resource
intensity, first of all in terms of expenditure related to parts (up to 40% of the
cumulative expenditure structure for production and sales), with workforce (up to
20%), marketing (up to 20%); technology leadership (R&D spending up to 8% of
revenue); product quality and brand reputation.
5. High degree of dependence on external factors and overall economic conditions.
The reason is due to the branching structure of the interdisciplinary and inter-industry
linkages in the automotive industry and the extensive integration of production and
sales into a single interdependent system.
6. There are very few completely generic parts or subsystems that can be used in a

26
wide variety of end products without extensive customization. Parts and subsystems
tend to be specific to specific car models as opposed to memory chips and
microprocessors in electronics as well as fabrics and only in the apparel industry.
7. Final vehicle assembly, and by extension, parts production, has largely been kept
close to end markets because of political sensitivities.
Solutions : Vietnam in the global automobile value chain

According to statistics, automobile supporting industry products have about

30,000 categories with different requirements on production techniques and
technology.
Therefore, first, it is necessary to build a list of automotive supporting industry
products, thereby helping policymakers and companies have a clear view of the
automotive supporting industry, solving has been vaguely conceived of the
assisted industry dream as equating supported industrial development with an
enhanced domestic rate. Building a portfolio of supporting industrial products
including assessing the level of technology or technical content in the product so
that Vietnam can be positioned in the global supply chain for the automotive
manufacturing process. Bowl. The import tariff on automobile supporting
industry products must be adjusted based on the detailed list and Vietnam's
comparative advantage for each category.
Secondly, to support the research and application of products, to establish
research centers for the application of automotive supporting industry products.
These centers can make the state invest with close links with the world's leading
assembly companies and suppliers, or do investment companies with the help of
the Government.
Third, to establish industrial zones and clusters for the production of automobile
components, to develop small and medium-sized enterprises engaged in the
production of supporting products or to provide raw materials for the production
of components and accessories.
Fourthly, promulgating policies to encourage investment in the automobile
supporting industry such as tax reduction, land rent reduction,... Moreover, these
policies must also ensure investment incentives. on a large scale, with incentives
based on the size of the investment project.
Fifth, cooperation, association and specialization among enterprises to move
towards larger markets: Currently, most of Vietnamese suppliers are still
focusing on short-term goals, i.e., short-term goals. focus on meeting short-term
contracts, less focus on creating and building long-term cooperative relationships
associated with regular information exchange with auto assemblers.

27
5. Population: Current trend, major theories explaining the development of
population (Malthusian Theory and Demographic transition theory) –
content/advantages and disadvantages/ application. (Thanh Huyền)

5.1. Current trend of population around the world

- Fast growing: The global human population reached 8.0 billion in mid-
November 2022 from an estimated 2.5 billion people in 1950, adding 1 billion
people since 2010 and 2 billion since 1998. The world’s population is expected
to increase by nearly 2 billion persons in the next 30 years, from the current 8
billion to 9.7 billion in 2050 and could peak at nearly 10.4 billion in the mid-
2080s. This dramatic growth has been driven largely by increasing numbers of
people surviving to reproductive age, the gradual increase in human lifespan,
increasing urbanization, and accelerating migration. Major changes in fertility
rate have accompanied this growth. These trends will have far-reaching
implications for generations to come.
- Changes in fertility rates and life expectancy: In the early 1970s, a woman had
on average 4.5 children; by 2021, the average global fertility rate had fallen to
2.3 children per woman. Meanwhile, average global lifespans have risen, from
about 64 years in the early 1990s to 71 years in 2021.
- High level of urbanization and accelerating migration: The first year in which
more people lived in urban than rural areas was 2007, and by 2050 about 68 per
cent of the world population will be living in cities.
=> These megatrends have far-reaching implications. They affect economic
development, employment, income distribution, poverty and social protections. They
also impact efforts to ensure universal access to health care, education, housing,
sanitation, water, food and energy. To more sustainably address the needs of
individuals, policymakers must understand how many people are living on the planet,
where they are, how old they are, and how many people will come after them.

5.2. Major theories explaining the development of population

a. Malthusian Theory
- Content
In Malthus’s view, human populations grow exponentially. He portrayed
fertility as a biological inevitability, not a social construction. Humans, like
animals, always reproduced at a biological maximum; they were, and are,
portrayed as prisoners of their genetic urges to reproduce. It is worth noting

28
 that Reverend Malthus’s argument carried with it a strong moral dimension: It
was not just anyone who reproduced rapidly, he observed, but most particularly
the poor.
Second, Malthus maintained that food supplies grew at a much slower rate than
did population. Malthus’s view that agricultural outputs increased linearly
overtime reflected the preindustrial farming systems that characterized his
world. In such circumstances, without economic of scale, an increase in outputs
is accomplished only with a proportional increase in inputs such as labor,
reflective of what economists call a linear production function. He argued that
in the face of limited inputs of land and capital, agricultural output was likely
to suffer from diminishing marginal returns.
=> Therefore, in Malthus’s view, population always and inevitably outstip their
resource bases, and people are condemned to suffering and misery as a result.
Malthus blamed much of the world’s problems on rapid population growth,
from famine to crime rates to deviant social behaviours.
- Advantages
Malthus’s ideas became widely popular in the late nineteenth century,
particularly as they were incorporated into the prevailing social Darwinism of
the time, which represented social change in biological terms, often
naturalizing competition as a result.
- Disadvantages
+ Malthus did not foresee the impacts of the Industrial Revolution on
agriculture. Indeed, the world’s supply of food has consistently outpaced
population growth, meaning that productivity growth in agriculture has
been higher than the rate of increase in the number of people.
+ Malthus did not foresee the impact of the opening up of midlatitude
grassland in much of the world, particularly in North America,
Argentina, and Australia, which increased the world’s wheat supplies
during the information of a global market in agricultural goods.
+ Malthus’s analysis of fertility was deeply flawed. During the industrial
revolution, total fertility rates declined and family sizes decreased. Thus,
contrary to his expectation, humans are not mere prisoners of their genes
and the birth rate is a socially constructed phenomenon, not a biological
destiny.
- Application: Neo-Malthusians advocated sharply curtailing population growth
through the use of birth control and had an important impact on international

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 programs promoting contraceptives and family planning, such as the Peace
Corps and Agency for International Development.

b. Demographic Transition Theory

- Content: Demographic Transition examines how birth, death and growth rates
change, and why they change, as a society moves from a rural, impoverished,
and traditional context into a progressively wealthier, urbanized, and modern
one.
+ Stage 1: Preindustrial Society: Total fertility rates are high; families are
large, and most women are pregnant much of the time.The mortality
rates are also quite high, which means that average life expectancy is
relatively low. Because both fertility and mortality rates are high, the
natural population growth is relatively low, often fluctuating around
zero. Thus, although families are large and parents have many children,
growth rates are curtailed by malnutrition, disease, and infant mortality.
+ Stage 2: Early Industrial Society: High total fertility rates because most
people still live in rural areas, children remain an important source of
farm labor. The major difference is the decline in mortality rates, which
leads to longer life expectancies due to better medical care. Death rate
for different demographic groups do not drop evenly as an economy
develops over time. Infant mortality rates tend to drop earliest and most
quickly. More babies survive to grow to adulthood. The natural growth
rate grows explosively. In short, poor countries have rapid increases in
population not because they have more children, but because fewer
people die earlier.
+ Stage 3: Late Industrial Society: Death rates remain very low. Total
fertility rates also exhibit a steady decline. It is important to note that
declines in crude birth rates almost always occur after declines in the
death rate; societies are much more amenable to death control than birth
control.
+ Stage 4: Postindustrial Society: Death rates decreased, and birth rates
continue to fall in such contexts, as families grow smaller and many
couples elect to go childless or have only one. When birth rates drop
below death rates, as they have in virtually all of Europe, the society
experiences negative population growth. The most rapid rates of
increase are found throughout the poorest part of the developing
countries. The economically developed nations, including North
America, Japan, Europe, Australia, and New Zealand, in contrast, have

30
 low rate of population growth, often hovering around zero or even
lower.
- Advantages:
+ Links fertility and mortality to changing socioeconomic circumstances.
+ Reveals fertility is socially constructed.
+ Predicts steadily declining levels of world population growth as crude
birth rates converge upon death rates.
- Disadvantages: Based on experience of the West and spread to all around the
world, while there is no evitable logic that assures the developing world must
meekly follow in the footsteps of the West.
- Application: The population explosion in the developing world will have
enormous enormous impacts. Not all of the world’s problems are reducible to
population growth, but many are not independent of it either. Rapid population
growth will accelerate, among other things, agricultural overcultivation and soil
depletion, overfishing, poaching, deforestation, depletion of water resources,
loss of biodiversity… Further, generating an infinite pool of poor people keeps
wages low, not only in the developing world but also in the developed, as
globalization pits the labor forces of countries against one another. Thus, it is
important to keep the dynamics of population growth in mind in relation to
environmental degradation, economic development, and international issues.

6. Common population problems of developing countries (Eg. International

migration, aging population, human development, inequality, etc.) – causes/
effects/ solutions; the relationship between population & resources, in general,
and population growth & food security, in particular? (Kiên)
6.1. International migration
6.1.1. Causes of migration
Economic factors: Economic opportunities play a significant role in driving
international migration. People often migrate to seek better job prospects, higher
wages, and improved living standards. Economic disparities between countries or
regions can lead individuals to move in search of better economic conditions.
Social and political factors: Social and political factors, such as political instability,
armed conflict, human rights abuses can force people to leave their home countries
and search for safety, security, and a better quality of life.
Environmental factors: Environmental factors, such as natural disasters, climate
change can also lead to international migration. Disruptions in the environment,

31
including droughts, floods, hurricanes, or rising sea levels, can force people to seek
refuge in other countries.
Education and career opportunities: Students often migrate internationally to
pursue higher education or access better educational opportunities. Similarly,
professionals may choose to migrate to countries that offer better career prospects,
advanced educational conditions.
6.1.2. Effects of migration
Economic impact: Migrants contribute to the workforce, fill labor gaps, and send
remittances back home, boosting economic growth and development.
Cultural diversity: Migration brings diverse customs, traditions, and languages,
enriching societies and promoting multiculturalism.
Social and demographic changes: Migration can lead to increased diversity, social
challenges, and brain drain (loss of skilled individuals) in the origin country.
Remittances and development: Migrants' financial contributions through remittances
help reduce poverty, improve access to education and healthcare, and stimulate
economic growth in their home countries.
Challenges and tensions: Migration can strain public services, create competition for
jobs, and lead to cultural clashes and social inequality, requiring effective policies and
integration efforts.
6.1.3. Solutions for migration
Here are some concise solutions for international migration:
● Promote economic development and job creation in origin countries.
● Invest in education and skills development programs.
● Address conflict and promote stability in the home countries.
● Improve living conditions and access to basic services.
● Implement well-designed migration policies and legal pathways.
● Foster international cooperation and partnerships.
● Promote integration and social cohesion.
● Address climate change and environmental issues.

6.2. Aging population

6.2.1. Causes of aging population

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Declining birth rates: Reduced fertility rates contribute to an aging population as there
are fewer young individuals to replace the aging workforce.
Increased life expectancy: Advancements in healthcare, nutrition, and living
conditions have led to longer life expectancies, resulting in a larger elderly population.
Decreased mortality rates: Improved medical care and better access to healthcare
services have led to lower mortality rates, allowing people to live longer.
6.2.2. Effects of aging population
Increased healthcare demand: The aging population requires more healthcare services
and long-term care due to higher rates of chronic illnesses and age-related conditions.
Strained pension and social security systems: A larger proportion of elderly
individuals places a burden on pension and social security systems as the working-age
population decreases, leading to potential economic challenges.
Labor force shortages: The decline in the working-age population due to an aging
society can result in labor shortages, affecting economic productivity and potentially
leading to skill gaps.
Economic implications: An aging population can impact economic growth, reduce
consumer spending, and strain government budgets as resources are allocated to
support the elderly.
Social and intergenerational dynamics: Changes in family structures, with fewer
younger individuals caring for more elderly family members, can impact social
dynamics and create a need for increased elderly care facilities and support systems.
6.2.3. Solutions for aging population
Encourage higher birth rates: Governments can implement policies to promote family-
friendly environments, provide parental benefits, and support work-life balance to
increase birth rates.
Promote healthy aging: Initiatives that focus on preventive healthcare, nutrition, and
lifestyle changes can help individuals age healthily and reduce healthcare demands.
Extend retirement age: Raising the retirement age can address labor shortages and
ensure the sustainability of pension and social security systems.
Enhance healthcare and long-term care infrastructure: Investments in healthcare
facilities, technology, and long-term care services can better cater to the needs of the
elderly population.
Facilitate intergenerational cooperation: Encouraging programs that foster interaction
between different age groups can promote social cohesion and support mechanisms
for the aging population.

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6.3. Inequality
6.3.1. Causes of inequality
Economic factors: Limited access to resources, capital, and job opportunities can
perpetuate income disparities and wealth concentration.
Social and cultural factors: Discrimination based on factors such as gender, ethnicity,
religion, or caste can lead to unequal treatment and opportunities.
Political factors: Corruption, weak governance, and lack of effective institutions can
contribute to inequality by favoring certain groups or individuals.
Global factors: Unequal terms of trade, unfair international economic policies, and
limited access to markets can hinder economic growth and exacerbate inequality in
developing countries.
6.3.2. Effects of inequality
Poverty and lack of basic needs: Inequality often results in a significant portion of the
population living in poverty, lacking access to basic necessities such as food, clean
water, education, and healthcare.
Limited social mobility: Inequality can restrict opportunities for upward mobility,
trapping individuals and communities in cycles of poverty and limiting their access to
education, skills development, and better jobs.
Social unrest and conflict: Wide disparities in wealth and opportunities can lead to
social tensions, conflicts, and instability within societies.
Health and well-being disparities: Inequality can result in unequal access to healthcare
services, leading to poorer health outcomes and higher mortality rates among
marginalized populations.
Economic inefficiency: High levels of inequality can hinder economic growth, as a
significant portion of the population is unable to contribute fully to the economy,
leading to wasted human potential and decreased productivity.
6.3.3. Solutions for inequality
Promote inclusive economic growth: Policies should aim to stimulate economic
growth while ensuring that the benefits are shared equitably, providing equal access to
opportunities and resources.
Enhance education and skills development: Investing in quality education and skills
training can empower individuals to escape poverty, increase their earning potential,
and contribute to economic development.

34
Improve social protection measures: Expanding social safety nets, such as cash
transfer programs, healthcare coverage, and social assistance, can help reduce poverty
and inequality by providing a basic level of support to vulnerable populations.
Strengthen institutions and governance: Addressing corruption, improving
transparency, and promoting good governance are crucial in creating a level playing
field and reducing inequality.
Address discrimination and social barriers: Implement policies and programs that
promote gender equality, address racial or ethnic disparities, and ensure equal rights
and opportunities for all individuals.
International cooperation: Developed countries can support developing nations
through fair trade policies, debt relief, and targeted development assistance to promote
inclusive growth and reduce inequality.

6.4. Relationship between population & resources

The relationship can be summarized as follows:
Resource Availability: The size and growth rate of a population directly impact the
availability of resources. As the population increases, there is greater demand for
essential resources such as food, water, energy, and raw materials. If the rate of
resource consumption exceeds the rate of resource replenishment or if resources are
mismanaged, it can lead to scarcity and environmental degradation.
Carrying Capacity: The concept of carrying capacity refers to the maximum number
of individuals that an environment can sustainably support given its available
resources and the technological level of resource utilization. When population size
surpasses the carrying capacity of an area, resource scarcity, environmental
degradation, and a decline in living standards can occur.
Resource Use Efficiency: The relationship between population and resources is
influenced by the efficiency of resource use. Improved technology, innovation, and
sustainable practices can enhance resource efficiency, allowing more people to be
supported with the same amount of resources. Conversely, inefficient resource use or
wasteful consumption patterns can exacerbate resource scarcity even with a smaller
population.
Impact on the Environment: The size and growth of the population can have
significant environmental consequences. Increased resource extraction, deforestation,
pollution, and greenhouse gas emissions associated with human activities can lead to
habitat destruction, loss of biodiversity, climate change, and other environmental
challenges. These impacts can further strain the availability of resources and disrupt
ecosystems.

35
Sustainable Development: Achieving a balance between population and resources is
crucial for sustainable development. This involves meeting the needs of the present
population without compromising the ability of future generations to meet their own
needs. It requires considering population dynamics, resource availability, equitable
distribution, technological advancements, and environmental conservation in policy
making and planning processes.

6.5. Relationship between population growth & food security

The relationship can be summarized as follows:
Increased Demand: As the population grows, the demand for food increases. More
people require an adequate and nutritious diet to meet their nutritional needs. This
places pressure on agricultural systems to produce sufficient food to feed the growing
population.
Agricultural Productivity: To ensure food security, agricultural productivity must
keep pace with population growth. This includes increasing crop yields, improving
farming techniques, utilizing technology, and enhancing infrastructure to support
efficient food production and distribution.
Land Availability: The availability of arable land becomes a crucial factor in
supporting larger populations. Population growth can lead to urbanization,
industrialization, and the conversion of agricultural land for non-agricultural purposes.
This reduction in available land can impact food production capacity and exacerbate
food security concerns.
Water Resources: Population growth increases the demand for water, a critical
resource for agricultural production. As more people require water for domestic,
industrial, and agricultural purposes, the availability and sustainable management of
water resources become essential for maintaining food security.
Environmental Impact: Expanding agricultural activities to meet growing food
demand can lead to environmental challenges such as deforestation, soil degradation,
water pollution, and greenhouse gas emissions. Unsustainable practices can
undermine long-term food security by degrading ecosystems and reducing the
capacity to produce food.
Access and Distribution: Even if sufficient food is produced, ensuring access and
equitable distribution is crucial for achieving food security. Factors such as poverty,
income inequality, inadequate infrastructure, and social barriers can limit access to
food for certain segments of the population, leading to food insecurity and
malnutrition.

36
7. Resources and environment: Renewable and non-renewable resources –
definition/ example/ actual situation of exploitation and use of these resources in
Vietnam; main sources of renewable and non-renewable energy - characteristics/
pros and cons; impacts of energy crises and practical contact with Vietnam. (Lê
Linh)

7.1. Renewable and non-renewable

Criteria Renewable Nonrenewable

Definition A renewable resource is a resource Nonrenewable resource refers to a

that can be replenished naturally over natural substance that is not
time. As a result, it is sustainable replenished with the speed at which
despite its consumption by it is consumed.
humankind. In other words, a nonrenewable
resource is a finite resource.

Example The sun, wind, water, the earth's heat Fossil fuels like oil, natural gas, and
(geothermal), and biomass. coal.

Main Solar energy is the most abundant of Most non-renewable energy sources
sources all energy resources and can even be are fossil fuels: coal, petroleum, and
harnessed in cloudy weather. natural gas.
Wind energy harnesses the kinetic Coal is a black or brownish rock
energy of moving air by using large that burns to create energy.
wind turbines located on land Petroleum is a liquid fossil fuel. It
(onshore) or in sea- or freshwater is also called oil or crude oil.
(offshore)
Natural gas is another fossil fuel
Geothermal energy utilizes the that is trapped underground in
accessible thermal energy from the reservoirs. It is mostly made up of
Earth’s interior. methane.
Hydropower harnesses the energy of
water moving from higher to lower
elevations.
Ocean energy derives from
technologies that use the kinetic and
thermal energy of seawater - waves or
currents for instance - to produce

37
 electricity or heat.

7.2. Characteristics of renewable and nonrenewable energy

7.2.1. Renewable energy
Unlimited power source: Unlike fossil fuels -such as coal, natural gas or oil-, whose
reserves are already running out, this type of energy does not run out as it is
consumed.
Natural resources: They are nourished by natural elements so, while resources such
as the sun or water appear to supply the Earth, renewables can continue to provide us
with energy.
Not produce greenhouse gas emissions: Another of its great differences with fossil
fuels. So they do not harm the planet or contribute to climate change.
Not generate waste: So its impact on the environment is very small.
7.2.2. Nonrenewable energy
Finite resources: Available only in finite quantities and cannot be regenerated easily.
Mainly are minerals : Concentrated as minerals usually in the lithosphere of earth in
a number of forms (solid, gaseous and liquid forms).
Not environment friendly: unless subjected to recycling, their substances remain as
waste material.

7.3. Pros and Cons of Renewable and Nonrenewable

Renewable energy

Advantage Disadvantage

- Renewable energy is perpetual - Has high upfront costs

- Renewable energy has lower - Renewable energy is intermittent
maintenance and operation requirements - Renewable energy sources have
and costs => Save money geographic limitations and limited storage
- Environmental benefits: cut down on capabilities
waste, cleaner water and air - Aren’t always 100% carbon-free
- Renewables lower reliance on foreign
energy sources

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 Nonrenewable energy

Advantage Disadvantage

- Non-renewable resources provide more - It takes billions of years to form.

energy and are easy to store in - Time-consuming and takes a lot of
comparison to renewable energy. effort in constructing phrases.
- Huge profits can be generated in the - Release a large amount of carbon
mining of coal, selling of oil. dioxide when burnt which is rapidly
- Non-renewable resources are easily destroying the ozone layer and damage
found, easily approachable and cost- to human health and wildlife.
effective. - Other toxins released while burning
- Non-renewable resources are creating fossil fuels could lead to climate change.
more jobs. Extracting, transporting and
refining are the parts of non-renewable
sources that provide employment.

7.4. Actual situation of exploitation and use of these resources in Vietnam

7.4.1. Non-renewable:
Vietnam has important advantages in mineral resources with more than 1,000 large
and small mines being exploited such as coal, iron, titanium, cement limestone,
construction stone but many kinds of mineral resources are in a limited list, the
management of mineral resources exploitation is weak and inadequate, so the situation
of illegal mining often occurs. Small mines are scattered in localities, most of the
mines being exploited are mostly located in the mountainous and midland areas and
are not managed uniformly and synchronously, resulting in resource loss and
environmental pollution. As the environment worsens, the exploitation of mineral
resources with outdated technology also causes deforestation, soil erosion,
sedimentation and pollution of rivers, streams, and coastal areas.
Vietnam mainly exploits and exports raw ore, which brings low economic value and
losses due to underground mining are from 40% to 60%; apatite from 26% to 43%;
metal ores from 15%; oil and gas from 50% to 60%; total recovery of gold ore in
processing is only 30-40%. There are also shortcomings in the assessment and
management of mineral resources. Vietnam has about 5,000 mines discovered, the
management agencies from the central to local have licensed to exploit almost all.
Where minerals are discovered, the management agencies permit individuals and

39
businesses to exploit there, not taking into account the needs of the future. Natural
resources are exploited in a full-fledged manner, but the State does not benefit much,
about 30% or so, depending on the mining enterprises reporting tax.
Some ores such as rare earth, titanium, zircon, lead zinc, gold, glass sand, feldspar,
kaolin have not yet been invested in building processing facilities to produce products
of good quality and economic value. High. Mining mines with small scale, semi-
manual, fragmented mineral processing facilities, outdated technology, low economic
efficiency, causing environmental pollution such as vertical kiln cement production,
brick production calcining, mining and processing titanium ore in gray sand, gold ore
mining, quarries exploiting stone for construction materials, construction sand mining
projects are still popular in many localities, causing many negative impacts. to the
environment, land resources, causing landslides, labor safety
7.4.2. Renewable:
Vietnam utilizes four main sources of renewable energy: hydroelectricity, wind
power, solar power and biomass By the end of 2018, hydropower was the largest
source of renewable energy, contributing about 40% to the total national electricity
capacity. In 2020, wind and solar had a combined share of 10% of the country's
electrical generation, already meeting the government's 2030 goal, suggesting future
displacement of growth of coal capacity. By the end of 2020, the total installed
capacity of solar and wind power had reached over 17 GW. Over 25% of total power
capacity is from variable renewable energy sources (wind, solar). The commercial
biomass electricity generation is currently slow and limited to valorizing bagasse only,
but the stream of forest products, agricultural and municipal waste is increasing. The
government is studying a renewable portfolio standard that could promote this energy
source.
While wind and solar investment remains attractive in Vietnam, existing capacity is
under-utilized due to lack of electric transmission capacity and lack of a replacement
for the expired feed-in tariff.
Solar power
By the end of December 31, 2020, the total installed capacity of solar and wind power
across the country has reached 16.5 GW. This also means that over 25% of total
power capacity is from variable renewable energy sources (wind, solar). The total
installed capacity of solar power has so far exceeded the targets of PDP VII adjusted
for 2030. The year 2020 also witnessed a breakthrough in rooftop solar power with
more than 100,000 rooftop solar power projects completed. connected to the power
system with a total installed capacity of nearly 9,300 MWp.
Wind power

40
Currently, Vietnam allows the implementation of wind power projects in a number of
central provinces (Ninh Thuan, Binh Thuan, Binh Dinh), the South (Ca Mau, Kien
Giang) and island regions (Truong Sa, Phu Quoc, etc.) Con Dao).Wind power had a
good season in 2019, although not as spectacularly as solar power. By the end of May
31, 2019, 7 wind power plants had been operated with a total capacity of 331 MW.
The revised Power Plan 7 stated that Vietnam will have 800 MW of wind power by
2020, 2,000 MW by 2025 and 6,000 MW by 2030. As of mid-2019, the number of
projects under construction has almost reached up to the 2020 planning target, and the
number of approved projects is twice as high as the 2025 planning target. As of July
22, 2021, there were 13 wind power plants with total capacity. 611.33 MW has come
into commercial operation. However, this is still a very modest number compared to
the wind energy potential of our country.
Hydro-power
Vietnam has the potential to exploit hydropower capacity of about 25,000 - 38,000
MW, of which 60% is concentrated in the North, 27% in the Central and the
remaining 13% in the South of Vietnam. large (over 100 MW capacity) Therefore, our
country focuses on developing small hydroelectricity.
Across the country, more than 1,000 potential locations have been discovered for
small hydroelectric projects, ranging from 30 to 100 MW, with a total capacity of
more than 7,000 MW. These locations are concentrated mainly in the northern
mountainous region, the South Central Coast and the Central Highlands
Biomass power
As an agricultural country, Vietnam has great potential for biomass energy. Some
common forms of biomass: energy wood, waste - crop by-products, livestock waste,
urban waste and other organic waste. Biomass energy sources can be used by burning
directly, or forming biomass fuel pellets.
As of November 2018, there were 38 sugar mills in Vietnam producing electricity and
heat with a total capacity of about 352 MW. Among them, only 4 power plants are
connected to the grid with a total capacity of 82.51MW (22.4%), selling 15% of the
electricity generated from biomass to the grid at a price of 5.8 US¢// kWh.As of the
end of 2018, 10 more biomass power plants with a total capacity of 212 MW have
been put into operation.
As of February 2020, the total biomass power capacity currently in operation is about
400 MW. In which, co-generation of thermal power at sugar mills still accounts for a
large proportion: 390 MW with 175 MW of electricity connected to the grid. The rest
about 10 MW is from garbage power projects.

41
In addition to the fuel and renewable energy sources mentioned above, Vietnam
also has potential for geothermal energy, marine energy such as tidal power.
These energy sources are still being researched to identify and evaluate potential
reserves. However, the actual exploitation of renewable energy is still very small
compared to the potential.

7.5. Impacts of energy crises and practical contact with Vietnam

● Impacts of energy crisis to the world
Disruptions to the global energy market are putting Governments worldwide under
enormous pressure. According to the IEA, higher energy prices have contributed to
painfully high inflation, pushed families into poverty, forced some factories to curtail
output or even shut down, and slowed economic growth to the point that some
countries are heading towards severe recession.
For example, Europe, whose gas supply is uniquely vulnerable because of its historic
reliance on Russia, could face gas rationing in winter, while many emerging
economies are seeing sharply higher energy import bills and fuel shortages.

● Impacts of energy crisis to Vietnam

Vietnam is heavily dependent on fossil fuels such as coal, oil, and gas for its energy
needs. Therefore, when the energy crisis occurs in Europe and other parts of the
world, Vietnam faces a great competition in supply and the crisis will have big
impacts on energy investment plans and socio-economic development plans of the
country.
The ongoing energy crisis leads to fuel price hikes increasing input costs for power
plants using imported fuel.
Economic Impact: The energy crisis has a significant impact on the economy of
Vietnam. The country has to import a significant amount of fossil fuels, which has led
to fuel price hikes increasing input costs for power plants using imported fuel. As a
result, the trade deficit is affecting the country's economic growth.
Infrastructure Impact: The energy crisis has had an impact on the infrastructure of
Vietnam. The country is facing electricity shortages, leading to power outages in some
areas. This has affected businesses, and the country has had to invest in new energy
infrastructure to meet its growing energy needs.
Social Impact: The energy crisis has also had a social impact. The high cost of energy
has led to an increase in the cost of living, affecting low-income

42
In the last couple of years, Vietnam is transforming its energy structure towards
increasing the proportion of renewable energy sources, but must ensure affordable
electricity bills and adequate high-quality electricity supply for socioeconomic
development – a huge challenge.

8. Energy development potential of Vietnam - current status/ achievements and

drawbacks/ solutions / FDI attraction into energy development in Vietnam; how
the legal possession of oceans contributes to Vietnam’s development and
affirmation of position? Climate change: definition/ impacts/ solutions. (Lưu
Linh)
8.1. Energy development potential of Vietnam
a. Current status
- Energy plays a crucial role in Vietnam's economic development. Over the past years,
electricity production in Vietnam has increased approximately 30 times, from 8.6
billion kWh in 1990 to more than 247 billion kWh in 2020, ranking 2nd in the
ASEAN region and 23rd in the world.
- In 2019, 41.6% of Vietnam's electricity output was produced from coal. This figure
is expected to increase to 56% by 2030 to support the country's energy needs,
including sectors such as food processing, textile manufacturing, machine
manufacturing, mining, and manufacturing. Steel and mobile phone production
suggest that home production is still heavily dependent on coal.
- However, in recent years, the Vietnamese government has gradually proposed
priorities for the development of renewable energy (wind, solar, biomass) and the
required number of coal-fired power plants may be cut in the future. In some
countries, the cost of generating electricity from renewable energy sources - such as
wind, solar and biomass - is already cheaper than coal, and is still falling every year.
- By mid-2019, the installed capacity of renewable energy only accounted for 9.4%,
by the end of 2020, this number had risen to 25.3%, exceeding the planned target by
205%. According to a report by Vietnam Electricity (EVN), as of mid-2019, the
installed capacity of renewable energy only accounts for 9.4%. However, the total
capacity of renewable energy sources has reached 17,430 MW (an increase of 11,780
MW compared to 2019) and rises to 25.3% of the total installed capacity and 48% of
the peak capacity. of the system by the end of 2020.
b. Achievements and drawbacks
* Achievements:

43
- The remarkable growth of renewable energy sources: Vietnam's renewable energy
power output exceeds that of thermal power. Electricity production and import of the
whole system in 2022 will reach 268.4 billion kWh, of which hydroelectricity output
will increase by 20.8% compared to 2021 due to good water in the lake and the
mobilization of power generation in accordance with regulations on electricity
regulation. inter-lake operations; Wind and solar power plants come into stable
operation.
* Drawbacks:
- Our country's energy security is not really guaranteed: Our country still depends
heavily on fossil energy sources. In addition, the energy development model with a
high proportion of traditional and fossil energy sources has been causing negative
impacts on the environment and energy use in our country in recent years. There are
still many shortcomings, inefficiencies, not meeting the requirements of sustainable
development.
- Lack of a national master plan on energy: The energy sector is highly systematic, but
the sub-sectoral plans for Electricity, Coal, Oil - Gas, and Renewable Energy are built
separately, quite isolated, thus showing a lack of synchronization. unbalanced.
Forecasting energy demand is the first and very important step, it should be done with
appropriate and reliable methods, but recently we have made a preliminary electricity
and energy demand forecast. , manual, lack of synchronization, inaccuracy, often
high. Materials and data serving the planning are inconsistent, unreliable, and
underappreciated. The planning contents have not been systematically considered and
calculated, leading to lameness and inconsistency.
- Outdated technology: In coal mining, production and processing, the old technology
is slow to innovate, and the mining cost is high. Power generation technology, except
for a few large plants using G7 technology, the remaining coal-fired thermal power
plants from China are rated as average, with low efficiency, low reliability and
pollution. . Most of the small and medium hydroelectric power plants in China are
considered to be outdated, large in number, and have dependent consequences. In
industrial and civil energy consumption, over 70% of equipment is rated as outdated,
high energy consumption and high pollution.
- Limited finance: The proportion of grid investment is only approximately 30% of
total electricity investment, which is quite modest. From now to 2030, an average
annual investment in energy of about 10 billion USD is required, a significant
challenge for the national economy.
c. Solutions
- Regarding energy sources, organize additional exploration, inventory and assessment
of energy resources, especially coal, hydroelectricity, renewable energy, improve

44
reliability, and serve as a basis for construction. strategy, master plan, energy
development plan.
- To soon develop a national energy master plan, which is the scientific and legal basis
for the planning of energy sub-sectors: Electricity, Coal, Oil and Gas, Renewable
Energy, and Nuclear. spirit of the 2014 revised Electricity Law, defining energy
development goals and programs for the whole period, aiming to reduce coal-fired
power and increase the proportion of renewable energy.
- The Ministry of Industry and Trade needs to review the annual progress of the power
sources put into operation, balance the capacity - electricity, determine the scale
(capacity and electricity) of power sources using renewable energy. wind power, solar
power) need to be put into operation, distributed according to regions and regions with
the goal of bringing the highest efficiency (overcoming power shortage, reducing
power generation from oil-fired power plants, reducing power transmission, etc.)
between regions and without overloading the grid).
- For rooftop solar power projects: Increase capacity scale for projects in industrial
parks and commercial centers. Rooftop solar power projects are applied according to
the generated electricity mechanism, priority is given to local demand, electricity is
connected to the national grid to sell surplus power and buy insufficient electricity
according to consumption demand.
- Research and fully promulgate standards and regulations of renewable energy power
projects.
- Strengthen the search for green finance, climate finance and technology transfer for
renewable energy power projects.
- Research and implement solutions to limit the negative effects of wind power and
solar power due to changes depending on natural conditions (wind speed, solar
radiation). Solutions to be implemented include: Improving the accuracy of weather
forecasting; combine the development of hydroelectric power sources, stored
hydroelectricity, and single gas turbines; develop a large-scale energy storage system
and invest in the development and renovation of the transmission grid system; perform
demand-side management…
- Strengthen training of human resources in the field of renewable energy sources, in
all stages: Basic training at all levels from high school to university, vocational
training; acquiring and advancing to self-reliance in technology, improving the ability
to manufacture replacement equipment.
d. FDI attraction into energy development in Vietnam
* Current situation

45
- With such great demand, Vietnam is becoming an attractive market for domestic and
foreign investors. In the past 5 years, FDI flows and many domestic giants have
poured heavily into the renewable energy industry. According to the Ministry of
Planning and Investment, in 2020, the electricity production and distribution sector
will attract a total investment of over 5.1 billion USD, accounting for 18% of the total
registered investment capital. 28.53 billion USD) 38 times higher than the previous 5
years.
- Among these, many large FDI projects of famous corporations in the world have
invested in the field of renewable energy in Vietnam:
+ Long An I and II LNG Power Plant Project (Singapore) with a total registered
capital of over 3.1 billion USD, O Mon II Thermal Power Plant Project (Japan)
with a total registered capital of over 1.31 billion USD USD.
+ Bac Lieu Liquefied Natural Gas (LNG) Power Plant Project (Bac Lieu
Province LNG Thermal Power Center), with a total registered capital of up to 4
billion USD by Singaporean investor
+ Copenhagen Infrastructure Partners (CIP, Denmark) has signed a memorandum
of understanding (MOU) with the People's Committee of Binh Thuan province
to develop La Gan offshore wind power (Binh Thuan), with a total capacity of
up to 3.5 GW. With an estimated investment capital cost of up to 10 billion
USD
* FDI attraction policies into energy development in Vietnam
- Develop roadmaps, mechanisms and policies (taxes, fees, capital, techniques,
markets, planning and development strategies) of each industry and field in a
synchronous manner to attract and promote the effects of each sector. green credit
capital
- Research and develop mechanisms and policies to support the development of the
capital market to meet the long-term capital needs of enterprises investing in green
projects, renewable energy projects...
- Promulgating a policy on electricity prices in the coming time, ensuring transparency
and consistency to create confidence for investors in the energy sector in Vietnam.
- It is necessary to study and develop detailed regulations on green bonds such as
issuing regulations and conditions on green bonds, criteria for choosing green projects
for businesses...
- Conduct research and amend the Electricity Law to have a basis for socializing
electricity transmission activities, in order to remove important bottlenecks in energy
infrastructure.

46
8.2. How the legal possession of oceans contributes to Vietnam’s development and
affirmation of position.
The legal ownership of the sea, more specifically the East Sea, is one of the biggest
advantages for Vietnam to develop its economy, trade and ensure national security
and defense. Thanks to that, our country can contribute to development and
affirmation of position
- In terms of geographical location, the East Sea is located on the arterial sea traffic
route connecting the Pacific - Indian Ocean, Europe - Asia, the Middle East - Asia.
This is considered the second busiest international shipping route of the world. Every
day, about 150-200 ships of all kinds pass through the East Sea. Many countries and
territories in East Asia are economically dependent on this sea route, such as Japan,
Korea, Taiwan, Singapore and even China. More than 90% of the world's commercial
shipping is carried out by sea, and 45% of it passes through the South China Sea. The
East Sea has important straits such as the Strait of Malacca, the Strait of Taiwan,
which are quite busy straits in the world. Therefore, the East Sea plays a very
important role for all countries in the region in terms of geo-strategy, security and
defense, maritime traffic and economy.
- In terms of security and defense, the East Sea plays an important role as the eastern
defense line of the country. The islands and archipelagos in the East Sea, especially
the Hoang Sa and Truong Sa archipelagos, are not only meaningful in controlling sea
routes through the East Sea but also have important strategic defensive significance
for the South China Sea. Vietnam.
Our country borders the East Sea in three ways: East, South and Southwest. The seas
and continental shelf of Vietnam is a part of the East Sea stretching along the coast
about 3,260 km long, from Quang Ninh to Kien Giang, with many beautiful beaches
such as Tra Co, Do Son, Sam Son, Cua Lo, Cam. Rhine, Vung Tau... Thus, for every
100 km2 of land territory, there is 1 km of coastline, this rate is 6 times higher than the
average rate of the world (600 km2 of land has 1 km of coastline). Nowhere on the
Vietnamese mainland is more than 500 kilometers from the coast.
Vietnam has a large internal waters, territorial sea, contiguous zone, exclusive
economic zone and continental shelf according to the 1982 United Nations
Convention on the Law of the Sea; There are two archipelagos of Hoang Sa and
Truong Sa located between the East Sea and thousands of large and small islands, near
and far from the coast, forming a defense line to protect, control and master the sea
areas and continental shelf.
The East Sea plays an important role in the cause of national construction and defense,
both in history, in the present and in the future. Not only providing food for coastal

47
residents for thousands of years, the East Sea also creates conditions for the
development of economic sectors and is a gateway for Vietnam to have direct
relations with regions of the country. , trade with regional and international markets, is
a place of exchange and integration of many cultures.
- In terms of economy, the East Sea creates favorable conditions for Vietnam to
develop key economic sectors such as fisheries, oil and gas, maritime traffic,
shipbuilding, and tourism.
In addition, the coast of Vietnam also contains great potential for placer ores such as
coal, zircon, tin, gold, rare earth... in which heavy sand and black sand are valuable
resources of the country.
The two archipelagos of Hoang Sa and Truong Sa are located in the center of the East
Sea, which is very convenient for placing information stations, building stopping
stations and refueling ships... serving the maritime route on the East Sea.

8.3 Climate change

a. Definition
Climate change is the global phenomenon of climate transformation characterized by
the changes in the usual climate of the planet (regarding temperature, precipitation,
and wind) that are especially caused by human activities. As a result of unbalancing
the weather of Earth, the sustainability of the planet’s ecosystems is under threat, as
well as the future of humankind and the estability of the global economy.
b. Impacts
The impacts of climate change on The Planet’s Ecosystems
- An increase in temperature due to global warming it’s not only about a heat increase
that can be felt by humans or glacial ice melting – it has the potential to affect the
planet’s entire ecosystem. As we have been watching in many different countries,
from the US (California) to India or South Africa, the weather is getting disruptive.
Extreme weather events are more regular and their patterns are changing – they’re
more intensive, aggressive, and with more energy. This means more storms, floods,
cyclones, and droughts will take place over the next years.
- At the same time, the regulating capacity of oceans is also being affected by an
increase in temperatures. If global temperatures increase dramatically, ocean levels
will not only increase – they will also be facing the ecological challenges of oceanic
acidification and deoxygenation. At the same time, forest areas (e.g. Amazon
rainforest), fragile ecosystems (e.g. coral reefs) and biodiversity (e.g. corals, insects
and mammals) are also under threat.

48
The impacts of climate change cn Society and on the economy
- Climate change is already challenging and can further challenge our societies. With
the increase in temperatures in some countries, especially in Equatorial regions, the
flow of climate refugees is changing and increasing, putting pressure on other
countries to host them, help them strive and overcome political barriers.
- Climate change is the biggest health threat facing humans. Impacts on climate and is
taking a toll on human health, from problems like air pollution, disease, extreme
weather events, stress to mental health and the rise of hunger, to undernutrition in
areas where people can't grow crops or find the food they need.
The impacts of climate change on Businesses
- Businesses are also likely to be affected by climate change. Indeed, in a context
where the climate is changing, companies need to be aware of the risks that they may
face and be prepared to deal with them by developing CSR strategies that evaluate the
impacts they may suffer. Events such as damaged crops, the loss of infrastructures,
unexpected changes in market stocks, investors that ask for sustainability reports and
the growing expectations of society for business to be transparent are variables to keep
an eye on.

c. Solutions
- Save energy at home: Much of the electricity and heat we use is produced from coal,
oil and emissions. Use less energy by lowering the temperature and increasing the
cooling temperature, switching to LED bulbs and energy-efficient electrical
appliances, washing clothes in cold water or drying clothes instead of using the dryer.
- Walk, cycle, or use public transit: Walking or cycling instead of driving will reduce
greenhouse gas emissions and improve your health and fitness. When traveling long
distances, consider using a train or bus.
- Eat more vegetables: Conventional plant-based food production leads to fewer
greenhouse gas emissions and requires less energy, land and water.
- Cut down on food: When you oversleep on food, you're also wasting resources and
energy that were used to incubate, produce, pack, and transport that food. And when
making the rotor's components in a landfill, it produces methane, a potent greenhouse
gas.
- Reduce, reuse, repair and recycle: The electronics, clothing and other items we buy
cause carbon emissions at every point in the manufacturing process, from the
extraction of raw materials to raw materials for production and transportation of goods

49
to the market. To save the environment, buy less, buy secondhand, repair what you
can and recycle.
- Use renewable energy: lock down non-renewable energy sources such as coal and
gas.
- Choose eco-friendly products: To reduce your environmental impact, buy local and
seasonal foods, and choose products from companies that use resources responsibly
and commit to cutting back. emissions and waste.

9. Agriculture: Industrialization of agriculture – definition/ content / application;

distinguish between subsistence agriculture and commercial agriculture, major
types of commercial agriculture; focus on agriculture of Vietnam and Thailand
in comparison.
9.1. Definition of Industrialization of agriculture:
Agricultural industrialization is the process of transforming agricultural
production towards industrialization, such as the implementation of industrial animal
husbandry, or agricultural mechanization, modernization of farming processes,
production in the form of modern farming, applying science and technology to the
agricultural field to improve the productivity of agricultural products such as cattle,
fish, poultry and crops.
9.2. Content of Industrialization of agriculture:
- Mechanization and Technology: Industrialization of agriculture involves the
adoption of machinery and advanced technologies to automate and streamline
agricultural operations. This includes the use of tractors, harvesters, irrigation systems,
drones, sensors, and other equipment to improve efficiency, reduce labor
requirements, and increase productivity.
- Intensive Input Use: Industrialized agriculture relies on the intensive use of inputs
such as fertilizers, pesticides, herbicides, and genetically modified organisms (GMOs)
to optimize crop yields and control pests and diseases. This involves precise
application techniques and the use of synthetic or chemical inputs to enhance
production.
- Specialization and Monoculture: Industrialized agriculture often involves
specialization in specific crops or livestock to achieve economies of scale and
maximize production efficiency. This can lead to the prevalence of monoculture,
where large areas are dedicated to growing a single crop or raising a specific type of
livestock.

50
- Standardization and Quality Control: Industrialized agriculture emphasizes the
standardization of production processes and product quality. This includes adhering to
specific standards and regulations for food safety, traceability, and product labeling to
meet market requirements and consumer expectations.
- Supply Chain Integration: Industrialized agriculture integrates various stages of the
agricultural supply chain, including production, processing, distribution, and
marketing. This can involve the consolidation of farms, the establishment of
agribusinesses, and the development of efficient logistical systems to ensure a smooth
flow of agricultural products from farm to consumer.
- Technological Advancements: The industrialization of agriculture involves the
adoption of advanced technologies and practices to optimize resource utilization and
increase productivity. This includes precision agriculture techniques, remote sensing,
data analytics, artificial intelligence, and other digital tools to monitor and manage
crops, livestock, and farm operations more efficiently.
- Environmental Impact and Sustainability: Industrialized agriculture has raised
concerns about its environmental impact. Issues such as soil degradation, water
pollution, deforestation, greenhouse gas emissions, and loss of biodiversity are
important considerations. Sustainable agriculture practices, such as conservation
agriculture, organic farming, and agroecology, are increasingly promoted to mitigate
the negative environmental effects.
- Socioeconomic Implications: The industrialization of agriculture can have significant
socioeconomic implications, including changes in employment patterns, rural-urban
migration, and the concentration of power and resources in the hands of larger
agricultural enterprises. The social and economic well-being of small-scale farmers,
rural communities, and food security are important factors to consider in the context
of agricultural industrialization.
9.3. Application of Industrialization of agriculture:
- Application in soil preparation, fertilizer and livestock ponds
There have been many research works applied to improve soil fertility; Organic
fertilizers and microbiological fertilizers applied with new production technology are
very popularly used, which have significantly improved the quality of the soil.
Typically, research and application of biochar made from rice husk and coffee husks,
production by gasification method to improve soil quality and evaluate the effect on
crops.
- Application in selecting and creating new high-quality trees and varieties:
Many plants and breeds have been bred and selected using modern technology, new
methods and technical processes have been put into mass production on a large scale,

51
contributing to increasing productivity and quality of Vietnamese agricultural
products.
The livestock has mastered the process of producing frozen semen of cattle (buffaloes,
cows, goats, pigs), and at the same time successfully researched technologies for
embryo production, inoculation of fresh embryos and frozen embryos in some types.
livestock (cow, breeding sows) and some native chickens
- Application in crop care, livestock and aquaculture, contributing to improving labor
productivity.
The popular application of modern machinery and speeding up mechanization has
both contributed to liberating farmers' labor, ensuring seasonality, increasing
productivity and reducing post-harvest losses. New farming techniques in rice
production are applied very quickly by farmers, besides, technical processes and
solutions to prevent and control harmful organisms are also widely applied.
In addition, modern technological equipment and processes have been applied in
research, production and vaccination against diseases for livestock, thereby,
improving productivity and commercial quality, at the same time. , reducing the cost
and labor of farmers.
- Application in harvesting and preserving agricultural products
At present, many modern machines and advanced technological lines have been
widely used in harvesting and preserving agricultural products, especially in large-
scale and concentrated agricultural production areas. In Vietnam, advanced
technological processes, superior and safe biological products are widely used in
preserving agricultural products, such as: CAS (cells alive system) technology, food
preservation Japanese frozen; technological process of preserving fresh fruits and
vegetables by means of controlled atmosphere (CA); fruit preservation by MA
(modified atmosphere); preserved by film-forming preparations; ..
In the process of slaughtering and preserving products from livestock, many new
scientific and technological advances have been used, both to ensure food safety and
to show humanity and humanity to livestock.
9.4. Subsistence agriculture vs commercial agriculture:

Subsistence agriculture Commercial agriculture

Definition Subsistence agriculture is the More developed nations tend

production of food primarily for to have commercial
consumption by the farmer and is agriculture with the goal to

52
 mostly found in less developed produce food for sale in the
countries. global marketplace called
In subsistence agriculture, small- agribusiness.
scale farming is primarily grown The food in commercial
for consumption by the farmer and agriculture is also rarely sold
their family. Sometimes if there is directly to the consumer;
a surplus of food it might be sold, In commercial agriculture,
but that is not common. the primary objective is to
make a profit.

Characteristics Subsistence agriculture is Commercial agriculture has a

characterized by a high percentage small percentage of farmers,
of farmers, small farms, and few large farms, and many
machines. machines.

Nature Due to the high labor inputs Huge capital investment is

required in subsistence farming, it required, and that is why it is
is a labor-intensive technique. a capital-intensive technique.

Size of operation Small Medium to large

Input Low external inputs High level of external inputs

Operate usually on communal Usually on private and
land systems, and holding is not fenced-off land.
necessarily delineated or fenced Commercial producers may
off. also be found in communal
lands, usually in fenced-off
parts.

Type of products Multiple, used for own Few, specialized products

consumption

Equipment Minimal Mechanization and

intensification (i.g irrigation)

Financial capital Minimal High and access to credit

53
9.5. Major types of commercial agriculture:
Here are the commercial agriculture types mentioned in the specified source
(Home – pp.170-177):
- Mixed Crop and Livestock Farming: This type involves the integration of both crop
production and livestock rearing on the same farm. It allows for the efficient use of
resources, as crops can provide animal feed and livestock manure can be used as
fertilizer.
- Dairy Farming: Dairy farming focuses on the production of milk and milk-based
products. It involves raising dairy cows, providing them with proper nutrition and
healthcare, and managing milk production and processing.
- Grain Farming: Grain farming involves the cultivation of grains such as wheat,
corn, rice, barley, and oats. These crops are primarily grown for human consumption
and are major staples in many parts of the world.
- Cattle Ranching: Cattle ranching refers to raising cattle on extensive grazing lands.
This type of agriculture is common in regions with vast grasslands, such as parts of
North America, South America, and Australia.
- Mediterranean Cropping: Mediterranean cropping is a type of agriculture practiced
in regions with a Mediterranean climate. It involves growing crops such as grapes,
olives, citrus fruits, and vegetables that are well-suited to the warm, dry summers and
mild, wet winters characteristic of these areas.
- Horticulture and Fruit Farming: Horticulture and fruit farming involve the intensive
cultivation of fruits, vegetables, and ornamental plants for commercial purposes. This
type of agriculture often utilizes specialized techniques to maximize crop yields and
quality.
9.6. Agriculture of Vietnam and Thailand in comparison:
9.6.1. Regarding crop varieties
Agriculture in Vietnam:
- Rice Production: Vietnam is one of the world's largest exporters of rice, and rice
farming is a crucial part of its agriculture. The Mekong Delta and Red River Delta are
the main rice-growing regions. The government has implemented policies to promote
rice production and improve its quality and productivity.
- Coffee: Vietnam is the second-largest coffee producer globally, primarily cultivating
Robusta coffee. The Central Highlands region, including provinces like Dak Lak and
Lam Dong, is known for coffee production. Coffee cultivation has significantly
contributed to Vietnam's agricultural exports and rural livelihoods.

54
- Aquaculture: Vietnam has a thriving aquaculture industry, particularly in shrimp and
pangasius (catfish) production. The Mekong Delta region is a key area for
aquaculture, with fish ponds and shrimp farms. Vietnam exports a significant amount
of seafood, making it one of the leading seafood exporters worldwide.
- Cash Crops: Besides rice and coffee, Vietnam also produces cash crops such as tea,
rubber, pepper, and cashew nuts. These crops contribute to both domestic
consumption and export markets.
- Challenges: Vietnam's agriculture faces challenges such as fragmented land
holdings, limited access to credit and technology for small-scale farmers, water
pollution, and vulnerability to climate change impacts like floods and droughts.
Agriculture in Thailand:
- Rice Production: Thailand is a major global exporter of rice and is known for its
high-quality jasmine rice. Central and northeastern regions, including the Chao Phraya
River Basin, are key rice-growing areas. The government has implemented policies to
support rice farmers and promote agricultural productivity.
- Horticulture and Fruits: Thailand has a diverse range of horticultural products,
including tropical fruits like mangoes, durian, pineapples, and vegetables. It has
developed agro-industrial zones and implemented advanced agricultural practices to
boost horticultural production and exports.
- Poultry and Livestock: Thailand has a significant poultry industry, producing
chicken and eggs for both domestic consumption and export. Livestock farming,
including pork and beef production, also plays a role in Thailand's agriculture.
- Rubber and Cassava: Thailand is a leading producer and exporter of natural rubber.
Southern Thailand, particularly the provinces of Songkhla and Surat Thani, is known
for rubber plantations. Cassava (tapioca) is another important crop, mainly cultivated
in the northeast.
- Challenges: Thailand's agricultural sector faces challenges related to water
management, productivity improvement, market access for small-scale farmers, and
the need for sustainable farming practices to mitigate environmental impacts.
-> While both Vietnam and Thailand have significant agricultural sectors, they differ
in terms of specific crops, regional strengths, and export profiles. Vietnam has a
strong focus on rice, coffee, and aquaculture, while Thailand excels in rice,
horticulture, poultry, and rubber. Each country faces its unique challenges, and their
agricultural policies and initiatives aim to address these issues and promote
sustainable agricultural development.

55
9.6.2. Regarding industrialization in producing
Vietnam and Thailand are both countries in Southeast Asia with developed
agricultural sectors. While there are some similarities, there are also differences in the
application of agricultural production technology. Here are some key differences
between the two countries:
- Agricultural production scale: Thailand has a larger agricultural sector compared to
Vietnam and has a diverse and abundant export of agricultural products. Thailand has
invested in more advanced technology and agricultural production systems, including
the application of modern agricultural equipment and automation processes in
production.
- Irrigation technology: Thailand has made progress in irrigation technology through
the application of automated and more efficient irrigation systems. Vietnam has also
invested in irrigation technology, but in some rural areas, traditional irrigation
methods are still used.
- Application of information technology: Both Vietnam and Thailand have been
promoting the use of information technology in agriculture. Thailand has a national
program called "Thailand 4.0" to promote the integration of digital technology and
agriculture through the development of mobile applications and smart agricultural
management systems. Vietnam has also been promoting the application of information
technology in agriculture, but the scale and progress may vary between regions and
agricultural sectors.
- Management of fertilizer and pesticide use: Both Vietnam and Thailand are
strengthening the management of fertilizer and pesticide use in agricultural
production. Thailand has implemented clean production techniques and organic
methods to reduce the dependence on chemical inputs. Vietnam is also adopting
similar approaches to promote sustainable and environmentally-friendly agricultural
practices.
It's important to note that these differences may vary across different regions and
agricultural practices within each country.

10. International trade: Concept, factors affecting, international trade flows and
partners. Trade relationship between Vietnam and a main partner such as
China, Japan, EU: Opportunity, challenges, and solutions. (Chung)
10.1. Concept
International trade is the exchange of commodities, products, services, capital between
people and companies in different countries. International trade has existed for a long

56
time, but trade has increased hugely in the past few hundred years and has a major
impact on the economies of many countries.
International purchase and sale of goods shall be conducted in the form of export,
import, temporary import for re-export, temporary export for re-import and transfer
through border-gates.

10.2. Factors affecting international trade:

● Production factors: capital, technology, human capital and skills,
entrepreneurship, raw materials and land - vary from country to country. With
different available inputs, each country has different opportunity cost when
producing a particular good and service. It gives each country comparative
advantages compair to trading partners.
● Demand factors: depreciation in taste, consumers income, satisfacion. Similar
to differences in production capacity, countries also have differences in
consumption. This comes from income, tastes, culture. Due to differences in
consumption, a commodity has different needs in different countries.
● Macroeconomic factors: inflation, exchange rate, political, government
choices of policy (liberalization or protection)
● Other factors: payment system, logistics development, disaster, pandemic,
war, international economic integration

10.3. International trade flow

International trade flows have seen significant changes in recent years, with three key
trends emerging.
The first trend is the increasing proportion and growth rate of trade value of finished
products compared to raw materials. This trend indicates a shift towards greater value-
added production and higher levels of industrialization.
Many countries are moving away from exporting raw materials and are instead
investing in processing industries to produce finished goods. This shift can be seen in
the increasing number of countries that are exporting high-value products such as
electronics, machinery, and automobiles. This trend is expected to continue in the
coming years, particularly as more countries turn to advanced manufacturing
technologies.
The second trend is the increasing proportion and growth rate of trade in services.
With the growth of information and communication technology, many service-based
industries such as finance, telecommunications, and business services are becoming

57
more tradeable. This trend is also driven by the rise of e-commerce and digital
platforms, which have made it easier for service providers to reach customers around
the world.
As a result, many countries are shifting towards service-based economies, which can
bring significant benefits in terms of higher-wage jobs and greater economic
diversification. This trend is expected to continue, with trade in services projected to
grow faster than trade in goods in the coming years.

10.4. International trade partners

International trade is an essential component of the global economy, and different
countries or regions have varying levels of involvement in the trade activities. Here's
an overview of some of the major trade partners:
- Asia: The continent of Asia is home to some of the world's largest economies,
including China, Japan, South Korea, and India. Asia is a major hub for
manufacturing and exports, particularly in industries such as electronics,
textiles, and automotive.
- Europe: Europe is a significant player in international trade, with countries
such as Germany, France leading the way. The European Union is the world's
largest single market, and its member countries engage in extensive trade with
each other. Europe is also a major exporter of manufactured goods, such as
automobiles, aircraft, and pharmaceuticals.
- North America: The North American region includes the United States,
Canada, and Mexico. The United States is the world's largest economy and
engages in extensive trade with both Canada and Mexico, in addition to other
countries. The region is known for exporting goods such as machinery,
vehicles.

10.5. Trade relationship between Vietnam and major partners:

10.5.1. China
Vietnam and China have maintained a trade relationship for centuries, and it has been
growing stronger in recent years. In 2019, China was Vietnam's largest trading
partner, accounting for 23% of its total trade. Vietnam is also China's largest trading
partner in Southeast Asia.
The main products that Vietnam exports to China are agricultural products, such as
rice, rubber, and cashew nuts. In addition, Vietnam also exports textiles, footwear, and

58
electronic components to China. Meanwhile, China exports machinery, equipment,
and electronics to Vietnam, as well as raw materials like iron ore and steel.

Opportunities:
1. Growing Chinese demand for Vietnamese agricultural products: Vietnam has a
strong agricultural sector that produces a range of products that are in high demand in
China, such as coffee, fruits, seafood, and rice. As China's middle class continues to
grow, demand for high-quality agricultural products is expected to increase, providing
significant opportunities for Vietnamese exporters.
2. Joint development of infrastructure projects: China is a major investor in Vietnam's
infrastructure sector, with a particular focus on developing transport networks and
energy projects. These investments present opportunities for Vietnamese companies to
participate in joint ventures and benefit from the transfer of technology and expertise.
3. Expansion of bilateral trade under the Belt and Road Initiative (BRI): Vietnam is a
key participant in the BRI, which aims to enhance connectivity and economic
cooperation between China and other countries in Asia and beyond. As part of this
initiative, there are opportunities for increased trade and investment between Vietnam
and China in sectors such as manufacturing, logistics, and tourism.

Challenges
1. Dependence on Chinese imports: Vietnam relies heavily on Chinese imports for
raw materials and intermediate goods, such as steel, chemicals, and electronics
components. This dependence poses a challenge for Vietnam's long-term economic
development, as it makes the country vulnerable to supply chain disruptions and price
fluctuations.
2. Trade imbalance: Vietnam's exports to China are dominated by low-value products
such as raw materials and agricultural products, while Chinese exports to Vietnam are
dominated by high-value products such as machinery and electronics. This trade
imbalance has resulted in a large trade deficit for Vietnam, which poses a challenge to
the country's economic growth.
3. Competition with Chinese firms: Chinese firms are increasingly investing in
Vietnam, particularly in the manufacturing and construction sectors. This competition
poses a challenge for Vietnamese firms, which may struggle to compete with larger,
better-funded Chinese companies. Additionally, Chinese firms may have an unfair
advantage due to their access to Chinese government funding and subsidies.

59
Solution (dùng cho cả các khu vực dưới luôn nhé)
1. Economic growth:
- Encouraging foreign investment by improving the business environment through
policies that reduce bureaucracy, increase transparency, and stimulate innovation.
- Developing a robust infrastructure, particularly in rural areas, to enable efficient
transportation and communication.
- Focusing on developing high-value-add industries such as information technology,
biotechnology, and renewable energy.
2. Environmental degradation:
- Implementing sustainable development strategies that balance economic growth with
conservation of natural resources.
- Strengthening environmental laws and regulations to ensure compliance with
international standards.
- Encouraging public awareness campaigns to promote eco-friendly practices and
reduce pollution.
3. Income inequality:
- Investing in education and training programs to provide access to better-paying jobs
and improve skill sets.
- Implementing progressive tax policies that redistribute wealth and promote equal
opportunities.
- Promoting social welfare programs that provide assistance to low-income families
and vulnerable groups.

10.5.2. European
Vietnam and the European Union (EU) enjoy a strong trade relationship. The EU is
one of Vietnam's top trading partners, accounting for around 13% of Vietnam's total
trade. In 2019, the total trade value between Vietnam and the EU was over €50 billion.
The EU is also the largest market for Vietnamese exports for several products such as
textiles, footwear, and electronics. In 2020, Vietnam's exports to the EU were valued
at €34.8 billion.

Opportunities:
1. Increased Export Demand: Vietnam has seen an increase in the demand for its
exports in the EU. The EU is Vietnam's second-largest export market, and with the

60
recent EU-Vietnam Free Trade Agreement (EVFTA), there is an opportunity for
Vietnam to increase its exports to the EU. This agreement has eliminated tariffs for
over 99% of the goods traded between the two regions, making exports more
accessible and cost-effective.
2. Attracting EU Investment: With the EVFTA in place, investors from the EU are
more likely to invest in Vietnam. This will lead to an increase in Foreign Direct
Investment (FDI) in the country, leading to job creation and economic growth. The
agreement has made Vietnam an attractive destination for investors who are looking
for a stable and growing economy.
3. Improved Intellectual Property Protection: The EVFTA has strengthened
intellectual property (IP) rights protection in Vietnam, providing an opportunity for
Vietnam to attract more high-tech investments from the EU. The increased IP
protection will encourage innovation, leading to the development of new products and
services. This will improve the competitiveness of Vietnam's economy and increase its
export potential.

Challenges
1. Compliance with international standards: Vietnam needs to align its regulations and
standards with EU requirements in order to meet the standards for trade in goods and
services. This implies significant investments in financial and human resources and
changes in administrative procedures.
2. Competition from other countries: Vietnam faces stiff competition from other
countries in the region that have free trade agreements with the EU. This means that
Vietnam needs to develop competitive advantages in areas where it has a comparative
advantage and address the challenges that it faces in areas where it has a disadvantage.
3. Protection of intellectual property rights: The EU has some of the most stringent
intellectual property laws in the world, which could pose challenges for Vietnam.
Vietnam needs to develop a legal and regulatory framework to protect intellectual
property rights, and work with the EU to ensure that its laws and regulations are
compatible with the EU's standards.

10.5.3. Japan
The trade relationship between Vietnam and Japan has grown significantly in recent
years. Japan is currently Vietnam's fourth-largest trading partner and one of the
biggest investors in the country.

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In 2019, the total trade between the two countries reached $39.9 billion, with Vietnam
exporting goods worth $19.2 billion to Japan and importing goods worth $20.7 billion.
The main exports from Vietnam to Japan include textiles, seafood, and electronic
products, while the main imports from Japan to Vietnam include machinery,
electronics, and automobiles.
Japan has also been a significant investor in Vietnam, with Japanese companies
investing heavily in manufacturing, electronics, and infrastructure projects. As of
2020, Japan is the largest foreign investor in Vietnam with a total investment capital
of over $59.7 billion.
The two countries have also signed a number of agreements to promote trade and
investment, including the Japan-Vietnam Economic Partnership Agreement (EPA),
which came into effect in 2009 and eliminated tariffs on many goods traded between
the two countries.

Opportunities
1. Increased Japanese investment in Vietnam: Vietnam has emerged as a major
investment destination for Japanese companies due to its strategic location, lower
labor costs, and a growing middle class. There is an opportunity for Vietnam to attract
more Japanese investment by offering incentives such as tax breaks or streamlined
regulations.
2. Expansion of trade in high-tech industries: Japan is known for its advanced
technology and innovation. Vietnam can leverage its growing tech industry to increase
trade with Japan in areas such as electronics, software, and renewable energy.
3. Collaboration in agriculture and food processing: Vietnam is a major agricultural
producer and exporter. Japan has a strong demand for high-quality agricultural
products. There is an opportunity for Vietnam to collaborate with Japanese companies
to improve food processing techniques and increase exports of agricultural products to
Japan.

Challenges
1. Competition from other countries: Vietnam faces competition from other countries
in its trade relationship with Japan. Japan has signed several trade agreements with
other countries in the region, such as South Korea and Singapore, providing these
countries with preferential access to the Japanese market. As a result, Vietnam may
struggle to compete with these countries in key sectors such as automotive,
electronics, and machinery.

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2. Language and cultural barriers: Vietnam may face challenges in communication
and building relationships with Japanese counterparts due to the language and cultural
differences between the two countries. This can make it difficult for Vietnamese
businesses to negotiate and secure favorable trade deals with Japanese companies.
3. Infrastructure and logistics: Vietnam's infrastructure and logistics network may not
be as developed as those of other countries in the region, making it more challenging
for Vietnamese businesses to transport their goods to Japan. This can result in higher
costs and longer delivery times, which can hinder Vietnam's ability to compete with
other countries in the market.

10.6. Questions in slides

10.6.1. Main differences between Domestic trade and International trade
1. Geographical Boundary: Domestic trade refers to the buying and selling of goods
and services within the boundaries of a country, while international trade refers to the
buying and selling of goods and services between different countries.
2. Regulations and Laws: Domestic trade is governed by the laws and regulations of
the country in which the trade takes place. In contrast, international trade is subject to
the laws and regulations of both the exporting and importing countries, making it
more complex and often requiring the involvement of regulatory bodies such as
customs and trade organizations.
3. Currency Exchange: In domestic trade, the currency used for transactions is the
same, while in international trade, different currencies are used. This requires the use
of currency exchange rates, which can impact the pricing of goods and services and
cause fluctuations in the market.

10.6.2. Why does international trade take place?

1. Access to resources: Countries may not have all the resources they need to produce
goods and services efficiently. International trade allows countries to access resources
that are not available domestically and produce goods and services more efficiently.
2. Comparative advantage: Different countries have different strengths and
weaknesses in terms of producing certain goods and services. International trade
allows countries to specialize in producing goods and services that they are relatively
better at producing, and trade with other countries to obtain goods and services that
they are relatively worse at producing.

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3. Market expansion: International trade allows businesses to tap into larger markets
beyond their domestic borders, increasing their customer base and potential profits.
This also leads to economic growth and job creation in the participating countries.

10.6.3. Comparative advantages of a country in international trade are

changeable because
1) Technological Advancements - A country's comparative advantage can shift due to
technological advancements in any particular sector. For instance, if a country is a
leader in the textile industry, but a new technology is developed that allows for faster
and more efficient production of textiles, then the country's comparative advantage in
the textile industry will change, as other countries will now be able to produce textiles
more efficiently and at a lower cost than the leader.
2) Changes in Resource Availability - A country's comparative advantage can also
change due to changes in resource availability. For example, if a country has a
comparative advantage in the production of steel, but a severe drought leads to a
shortage of water, which is essential for the production of steel, then the country's
comparative advantage in the steel industry will shift, as it will now be more
expensive and difficult to produce steel in that country.
3) Shifts in Consumer Preferences - Consumer preferences can also change, leading to
a shift in a country's comparative advantage. For instance, if a country is known for
producing high-quality leather shoes, but consumers' preferences shift towards more
eco-friendly and sustainable footwear, then the country's comparative advantage in
leather shoes will diminish, and other countries that produce eco-friendly footwear
will have.

10.6.4. Currently, dominant trend in international trade is liberalization because:

1. Reduction of trade barriers: One of the key indicators of liberalization in
international trade is the reduction of trade barriers. Countries are increasingly
lowering their import tariffs, removing quotas, and simplifying their customs
procedures to promote free and open trade. For instance, the World Trade
Organization (WTO) has been instrumental in negotiating trade liberalization
agreements, such as the General Agreement on Tariffs and Trade (GATT) and the
Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), among
others.
2. Emergence of regional trade blocs: Another trend in international trade is the
emergence of regional trade blocs, which promote free trade within a specific region.
Examples of such trade blocs include the European Union (EU), the North American

64
Free Trade Agreement (NAFTA), and the Association of Southeast Asian Nations
(ASEAN). These blocs aim to eliminate trade barriers and foster deeper economic
integration among member states.
3. Increased participation in global trade: The increasing participation of developing
countries in global trade is another indication of the liberalization trend. These
countries are increasingly opening up their economies to foreign investment,
promoting exports, and seeking to integrate into the global trading system. This has
been facilitated by the growth of international trade organizations

11. International investment: Concept, motivation for and constraints to FDI,

main impacts, flows and partners of international investment in The World
Economy. FDI in Vietnam/ other countries: Experiences and policy
recommendations. (Long)
11.1. Concept of international investment.
- Foreign Direct Investment (FDI): Investing in companies in a foreign country,
with the purpose of business and production control.
- Foreign Portfolio Investment (FPI): FPI is securities and other assets passively
held by foreign investors, allowing individuals to invest overseas.

11.2. FDI versus FPI: ( Câu hỏi trong slide)

Parameters FDI FPI

Definition FDI refers to the investment FPI refers to investing in the

made by foreign investors to financial assets of a foreign
obtain a substantial interest in country, such as stocks or
an enterprise located in a bonds available on an
different country. exchange.

Role of Active Investor Passive Investor

investors

Type Direct Investment Indirect Investment

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 Degree of High Control Very low control
control

Term Long term investment Short term investment

Management Efficient Comparatively less efficient

of Projects

Investment has Physical assets of the foreign Financial assets of the foreign
done on country country

Entry and exit Difficult Relatively easy

Leads to Transfer of funds, technology, Capital inflows to the foreign

and other resources to the country
foreign country

Risks Involved Stable Volatile

11.3. Motivation for and constraints to FDI.

- Motives
+ Natural or human resources: Countries rich in natural resources, such as oil,
gas, minerals, or agricultural products, can attract FDI from companies seeking
to access and exploit those resources. Similarly, countries with a skilled labor
force or advanced technological capabilities may attract FDI for the purpose of
harnessing those human resources.
+ Penetrate markets: FDI can enhance operational efficiency for companies by
utilizing the comparative advantages offered by the host country. This includes
access to lower production costs, economies of scale, efficient supply chains, or
specialized infrastructure. Companies may invest in countries where they can
produce goods or services more efficiently or cost-effectively, thereby
increasing their competitiveness in the global market.
+ Incentives and supports from Government: Governments often offer
incentives and support to attract FDI. These incentives can include tax breaks,

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 subsidies, grants, preferential treatment in regulations, or access to
infrastructure. Governments use these measures to attract foreign investment,
as it brings capital, technology, employment opportunities, and economic
growth to the host country.
- Constraints
+ Different consumer tastes in different places: Consumer preferences and
tastes vary across countries and cultures. Companies that operate successfully
in their home markets may face challenges in adapting their products or
services to suit the preferences of consumers in the host country.
Understanding local consumer behavior and adapting marketing strategies
accordingly can be a complex and costly process.
+ Cultural differences in business ethics and protocols: Cultural differences
can significantly impact business operations and relationships. Different
countries may have diverse business ethics, communication styles, and
protocols. These cultural disparities can create misunderstandings, conflicts,
and challenges in building trust and maintaining effective business
partnerships.
+ Political, legal, and policy differences: Each country has its own political,
legal, and policy frameworks that govern business activities. Foreign
companies must navigate these frameworks, which can vary in complexity,
transparency, and stability. Changes in government policies, regulations, or
legal systems can introduce risks and uncertainties for foreign investors.
+ Economic and infrastructure limitations: Some countries may have
inadequate infrastructure, such as transportation, communication, and energy
systems, which can pose challenges for businesses. Economic factors like the
level of economic development, availability of skilled labor, and access to
capital markets can also impact the feasibility and attractiveness of foreign
investment.

11.4. Main impacts.

- Positive impacts
+ Job Creation: International investment often leads to the creation of new job
opportunities in the recipient country. When foreign companies establish
operations or invest in existing businesses, they generate employment
opportunities for local workers, contributing to reduced unemployment rates
and poverty alleviation.

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+ Trade and Export Expansion: International investment can boost a country's
trade and export capacity. By establishing local production facilities or
partnering with local businesses, foreign investors can tap into new markets
and supply chains, leading to increased exports and enhanced integration into
global trade networks.
+ Financial Inflows and Capital Access: International investment brings
foreign capital into the recipient country's economy, either as direct investment
or through financial markets. These inflows can strengthen the country's
financial sector, provide access to funding for local businesses, and support
investment in other sectors of the economy.
+ Enhanced competition: International investment promotes competition by
introducing new players into domestic markets. The entry of foreign firms
often challenges domestic companies to improve their products, services, and
operational efficiency. This competition can stimulate innovation, encourage
cost reduction, and drive productivity gains across industries.
=> Contribution to economic growth, budget revenue, export promotion,
etc.
- Negative impacts
+ Negative Effects on Domestic Businesses: Foreign investment can pose
challenges for domestic businesses, especially small and medium enterprises
(SMEs). The presence of multinational corporations with greater resources and
competitive advantages can squeeze out local businesses, leading to job losses
and reduced market share for domestic companies.
+ Dependence on Foreign Investment: Over Reliance on foreign investment
can create a vulnerability in the recipient country's economy. If the flow of
foreign investment decreases or stops abruptly, it can lead to economic
downturns, currency depreciation, and difficulties in meeting debt obligations.
+ Increased Social Division: International investment can exacerbate social
inequality within the recipient country. Often, foreign investments concentrate
in certain regions, neglecting other areas, which can deepen regional
disparities. Moreover, disparities in wages, working conditions, and access to
resources between foreign-owned companies and local workers can contribute
to social divisions and tensions.
=> Backward technology, run out of natural resource, etc

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11.5. Flows and partners of international investment in The World Economy
- Flows:
+ Increased investment flows among Developed Countries (DCs): Developed
countries have experienced increased investment flows among themselves.
This can be attributed to factors such as stable economic conditions, advanced
infrastructure, mature financial markets, and favorable business environments.
Investments between developed countries often involve mergers and
acquisitions, joint ventures, and portfolio investments.
+ Higher investment inflows and outflows in developing countries:
Developing countries have attracted higher levels of investment inflows and
outflows in recent years. Factors contributing to this include rapid economic
growth, demographic advantages, availability of natural resources, and ongoing
market liberalization efforts. Developing countries often receive foreign direct
investment (FDI) aimed at establishing production facilities, accessing new
markets, and taking advantage of cost differentials.
+ Sustainable/green investment: There has been a growing emphasis on
sustainable and green investments worldwide. Investors are becoming more
conscious of environmental, social, and governance (ESG) factors and are
seeking opportunities that align with sustainable development goals. This
includes investments in renewable energy, clean technologies, energy
efficiency, sustainable agriculture, and responsible practices across various
industries. Governments and organizations are also implementing policies and
frameworks to promote sustainable investment practices
- Partners of international investment
+ China has emerged as a significant global investor in recent years. Its "Going
Out" policy encourages Chinese companies to invest abroad and establish a
presence in international markets. China invests in various sectors, including
energy, infrastructure, technology, and real estate. The Belt and Road Initiative
(BRI) is a major investment project that aims to enhance infrastructure
connectivity and trade between China and countries across Asia, Europe,
Africa, and beyond.
+ The EU is a major source of foreign direct investment (FDI) and has a highly
integrated internal market. EU member states collectively promote investment,
and the European Commission actively negotiates investment agreements on
behalf of its members. The EU invests globally in various sectors such as
manufacturing, finance, services, and research and development. The EU's
investment priorities often align with its broader strategic objectives, including
fostering economic growth and promoting sustainability.

69
 + South Africa is a key player in investment in the African continent. It has a
well-developed financial sector and is often seen as a gateway to other African
markets. South African companies invest in various sectors across the
continent, including mining, telecommunications, banking, and retail. South
Africa also attracts foreign investment, particularly in sectors such as mining,
energy, infrastructure, and tourism. The country actively pursues investment
partnerships and participates in regional economic integration efforts, such as
the Southern African Development Community (SADC) and the African
Continental Free Trade Area (AfCFTA).
11.6. FDI in Vietnam/ other countries: Experiences and policy recommendations.
11.6.1. Viet Nam Foreign Direct Investment
(FDI) has played a crucial role in Vietnam's economic development over the past
few decades. The government of Vietnam has implemented various policies and
reforms to attract FDI and create a favorable business environment for foreign
investors. In this response, I will discuss the experiences of FDI in Vietnam and
provide some policy recommendations.
The situation of Vietnam's FDI attraction in the period 2016 – 2022
After more than 30 years of opening up to attract foreign investment, the inflow of
foreign direct investment (FDI) into Vietnam has become a key driving force for
Vietnam's economic development and international economic integration. . Vietnam's
open-door policy for FDI and trade has so far clearly helped promote Vietnam's
integration into the global economy, participation in regional production networks and
export diversification. At the same time, this policy has created a large number of jobs
for a young and growing population, thereby improving the State's revenue and the
national balance of payments.
Besides, it can be seen that with the competitive advantage of an open investment
environment, stable political environment, stable macroeconomic environment,
abundant human resources at low cost, Vietnam is one of the attractive countries for
foreign investors. Thanks to these advantages, FDI inflows into Vietnam have tended
to increase in recent years, especially after Vietnam's participation in bilateral and
multilateral free trade agreements (FTAs).
FDI projects in Vietnam in the period 2012 – 2021

Number of new FDI Total registered investment Total implemented

Year Projects capital capital
(Billion USD) (Billion USD)

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 201 2613 26.90 15.8
6
201 2741 30.80 17.5
7
201 3147 26.30 19.1
8
201 3883 38.95 20.38
9
202 2523 28.53 19.98
0
202 1738 31.15 19.74
1
202 2036 27,72 22,4
2
Source: Author's compilation from Foreign Investment Report (2012 - 2021) of
Vietnam Foreign Investment Agency
In fact, in recent years, the contribution of the FDI sector to Vietnam's economic
growth has been very large, when the number of newly invested FDI projects in
Vietnam has increased sharply from 2613 to 3883 projects in the period 2016 - 2019.
With the total capital newly registered, adjusted and contributed capital to buy shares
by foreign investors increased from 26.90 to 38.95 billion USD. In which, the total
realized capital also increased sharply from 15.8 to 20.38 billion USD. However, in
2018 due to the impact of the US - China Trade War, the global economic growth rate
slowed down, especially that of the two major trading partners of Vietnam, thereby
disrupting supply chains and negatively impacting FDI inflows. The number of new
FDI projects in Vietnam still increased to 3147 projects, but the registered capital
decreased to 26.3 billion (down 14.61% compared to 2017). By 2019, the number of
FDI projects as well as the total registered capital increased sharply. Not having
recovered for a year, in 2020 Vietnam's economy will be negatively affected by the
Covid - 19 pandemic. In particular, due to the policy of economic closure to prevent
epidemics, which is making Vietnam's investment environment inefficient. Production
and business activities of enterprises were also affected, so FDI projects in Vietnam
had a decrease in both registered capital and newly registered projects, but realized
capital only decreased. light, reaching 98% compared to 2019. By 2021, although the
economy has prospered, the number of FDI projects in Vietnam will continue to
decline sharply to 1738 projects with a total registered capital of 31.15 billion VND,

71
equivalent to a decrease of 31.1% projects and increased 9.2% in value over the same
period last year.
By 2022, Number of new FDI Projects has increased sharply to 2036 projects with a
total registered FDI capital of nearly USD 27.72 billion (down 11% compared to
2021), but the realized FDI capital reached a record. 22.4 billion USD, up 13.5% over
the same period in 2021. This is the highest amount of realized FDI in 5 years (2016 -
2022). The high disbursement is a good sign that businesses are gradually recovering,
maintaining and expanding production and business activities after the Covid-19
pandemic. This has also confirmed foreign investors' confidence in Vietnam's
economy and investment environment. As a result, foreign investors have decided to
invest in expanding many existing projects. The fact that foreign investors
continuously increase their investment capital in Vietnam shows that foreign investors
continue to put their faith in Vietnam's economy and investment environment.
Accumulated by March 20, 2023, the whole country has 36,881 valid projects with a
total registered capital of nearly 444.1 billion USD. The accumulated realized capital
of foreign investment projects is estimated at more than 278.3 billion USD, equaling
nearly 62.7% of the total valid registered investment capital.
Investment sector:
In 2022, foreign investors have invested in 19/21 economic sectors, of which:
The processing and manufacturing industry leads the way with a total investment of
more than 16.8 billion USD, accounting for 60.6 % of total registered investment
capital in 2022; the real estate business ranked second with a total investment of more
than 4.45 billion USD, accounting for 16.1% of the total registered investment capital;
followed by electricity production and distribution (with registered investment capital
of 2.26 billion USD), professional science and technology activities with registered
capital of nearly 1.29 billion USD; The rest are other industries.
In terms of the number of new projects, the wholesale and retail sectors, the
processing and manufacturing industries, and professional science and technology
activities attracted the most projects, accounting for 30%, 25.1% respectively. and
16.3% of total projects. Vietnam is an attractive destination for foreign investors and
is facing a golden opportunity to attract large amounts of investment capital into
economic zones and industrial zones.
Many big investors in the world such as Apple, Goertek, Foxconn, Luxshare
are planning to move production activities and increase investment capital into
Vietnam. Apple has moved 11 factories of Taiwanese enterprises in its supply chain to
Vietnam, confirming the "transformation" step for Vietnam to become a new
production center of the world. The moves of foreign investors further prove that
Vietnam is really becoming a new production center of the world, especially in the

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fields of electronics and high technology. According to JPMorgan, Vietnam will
contribute 20% of the total output of iPads and Apple Watches, about 5% of
MacBooks and 65% of AirPods by 2025. Vietnam is emerging as a center for
manufacturing electronic components and manufacturing services. for low-volume
products (Apple Watch, Mac, iPad) and is becoming the main AirPods production
center.
Investment partner:
In the period 2016 - 2022, the number of countries and territories investing in
Vietnam is increasing. In which, Korea is the country with the most investment capital
in Vietnam with total investment capital accounting for 17-19% of total FDI capital.
Japan ranks second with investment capital that always fluctuates in the range of 14 -
17% of total FDI into Vietnam. In addition to the two countries with a large amount of
foreign direct investment mentioned above, in the period of 2016 - 2022, Vietnam also
received a lot of FDI investments from other countries and territories such as China,
Malaysia, Singapore, Taiwan, Hong Kong,…Especially Singapore, which has had a
strong growth in FDI investment in Vietnam since mid-2019. And has been the
leading country in total capital until now. In 2022, there are 108 countries and
territories investing in Vietnam; in which, Singapore leads with a total investment of
nearly 6.46 billion USD, South Korea ranks second with nearly 4.88 billion USD,
Japan ranks third with a total registered investment capital of more than 4.78 billion
USD, followed by China ($2.52 billion), Hong Kong ($2.22 billion). In the first 3
months of 2023, Singapore still leads with a total investment of nearly 1.69 billion
USD, accounting for nearly 31% of total investment capital in Vietnam.
In terms of the number of projects, Korea leads both in number of new projects
(accounting for 15.5%), number of capital adjustments (accounting for 26.9%) and
GVMCP (accounting for 28.4%).
=> Investors come from Asia, traditional investment partners still account for a
large proportion (Singapore, China, Taiwan, Korea, Hong Kong, Japan).
With the above data, the contributions of FDI enterprises have really made an
important contribution to promoting economic growth in terms of contributing to the
total supply and aggregate demand of the economy, contributing to increasing social
investment. society, GDP growth, creating spillover effects on technology, improving
the level and capacity of production - business and management for domestic
enterprises. After more than 30 years, the FDI sector also creates favorable conditions
for Vietnam to expand its international market, step by step participating in the global
production network and value chain.
Experiences of FDI in Vietnam:

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 ● Liberalization of the economy: Vietnam has gradually opened up its economy
to foreign investment since the 1980s, with the introduction of policies to
encourage foreign investment. This has included the establishment of special
economic zones, the simplification of investment procedures and the
liberalization of trade.
● Investment incentives: Vietnam offers a range of incentives to foreign
investors, including tax breaks, import duty exemptions, and other financial
incentives. These incentives are designed to encourage foreign investors to
invest in priority sectors such as manufacturing, infrastructure, and high-tech
industries.
● Strategic location and access to markets: Vietnam's strategic location in
Southeast Asia with access to major global markets has made it an attractive
destination for foreign investors. Vietnam's membership in regional and
international free trade agreements, such as the Comprehensive and Progressive
Agreement for Trans-Pacific Partnership (CPTPP) and the ASEAN Free Trade
Area (AFTA), has further strengthened its position as a hub for investment.
● Focus on infrastructure development: Vietnam's government has invested
heavily in infrastructure development in recent years, including transport,
power, and telecommunications infrastructure. This has created a favorable
business environment for foreign investors and facilitated the smooth operation
of businesses in Vietnam.
● Skilled workforce: Vietnam's abundant supply of skilled and low-cost labor has
made it attractive to foreign investors, particularly in the manufacturing sector.
The government has also invested in education and training to develop a highly
skilled workforce, further supporting Vietnam's attractiveness as an investment
destination.
● Investment in infrastructure: Developing infrastructure has been a key focus of
Vietnam's strategy for attracting FDI, and other countries have followed suit.
Developing infrastructure such as transport networks, utilities, and
communication systems helps to create the necessary conditions for businesses
to operate smoothly.
● Diversification of sectors: Vietnam has taken steps to diversify its economy
and attract FDI across different sectors, such as manufacturing, agriculture,
tourism, and services. Other countries have also adopted a similar approach,
recognizing the need for a diversified economy to attract foreign investment.
11.6.2. South Korea Foreign direct investment
FDI plays a significant role in the economic development of South Korea. Over the
years, South Korea has successfully attracted substantial FDI inflows, which have
contributed to its industrialization, technological advancement, job creation, and

74
export growth. In this response, I will discuss the experiences of FDI in South Korea
and provide some policy recommendations for further enhancing FDI inflows.
The situation of Korea's FDI attraction in the period 2016 - 2022

Figure 2.1: Korea’s FDI attraction in the peroid 2016 – 2022

Source: MacroTrends
Korea's FDI attraction experienced significant fluctuations from 2016 to 2022, but the
overall trend is positive. The country's FDI attraction reached its highest value of
$18.03B in 2022, reflecting a growth rate of 49.1% from 2016. However, FDI fell by
approximately 32% in 2018, which could be due to the US-China trade tensions and
the resulting global economic uncertainty.
The Korean government has been actively promoting policies to attract more foreign
investment to the country. In 2015, the government announced its "Foreign
Investment Promotion Plan," which aimed to attract $20 billion in FDI annually by
2020. The plan included measures such as tax incentives, deregulation, and the
establishment of free economic zones.
These policies seem to have contributed to the increase in FDI attraction from 2016 to
2017, which reflected a growth rate of around 48%. In 2017, the government launched
the "Invest KOREA" website, which serves as a one-stop-shop for foreign investors,
providing information on investment opportunities, procedures, and regulations.
However, FDI fell by approximately 32% in 2018, which suggests that the Korean
FDI market is vulnerable to external factors, such as global economic conditions and
geopolitical tensions. The US-China trade tensions and the resulting global economic
uncertainty may have contributed to the decrease in FDI attraction in 2018.

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Korea's FDI attraction remained relatively stable in 2019 and 2020, but increased in
2021 and 2022. The Korean government continued to promote policies to attract more
foreign investment, including the expansion of tax incentives, the simplification of
administrative procedures, and the establishment of a one-stop service center for
foreign investors.
In addition, Korea's successful response to the COVID-19 pandemic and its robust
economic growth may have also contributed to the increase in FDI attraction in 2021
and 2022. The pandemic has highlighted Korea's strength in industries such as
biotechnology, medical equipment, and IT, which may have attracted more foreign
investors to the country.
Furthermore, Korea's active efforts to attract more FDI in the high-tech industry have
also been successful. In 2019, Korea ranked third globally in terms of the number of
high-tech foreign investments it attracted, after the United States and China. This was
due in part to Korea's advanced technology infrastructure, highly skilled workforce,
and government support for research and development.
In conclusion, Korea's FDI attraction has experienced significant fluctuations from
2016 to 2022, but the overall trend is positive. The increase in FDI attraction in 2021
and 2022 could be attributed to the Korean government's active efforts to attract more
foreign investment, as well as Korea's successful response to the COVID-19 pandemic
and its robust economic growth. However, the Korean FDI market is vulnerable to
external factors, and Korea may need to continue promoting favorable policies to
attract more foreign investment in the coming years.

- Experiences of FDI in South Korea:

Market Liberalization: South Korea has undergone significant market liberalization
measures, including the reduction of trade barriers and the promotion of foreign
investment. The country's accession to international trade agreements, such as the
World Trade Organization (WTO), has improved market access for foreign investors,
creating a favorable environment for FDI.
Technological Advancement: South Korea's emphasis on research and development
(R&D) and innovation has resulted in a highly skilled workforce and cutting-edge
technologies. This has been a crucial factor in attracting FDI, particularly in the high-
tech and knowledge-intensive sectors.
Government Support: The South Korean government has implemented various
policies and incentives to attract FDI. These include tax benefits, financial assistance,
streamlined administrative procedures, and the establishment of specialized economic
zones. The government's commitment to creating an investor-friendly environment
has been instrumental in attracting FDI inflows.

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 - Policy Recommendations for further enhancing FDI in South Korea:
Continued Market Opening: South Korea should continue to pursue market
liberalization by further reducing trade barriers and promoting fair competition. This
can be achieved through the negotiation of free trade agreements with key trading
partners, which will provide greater market access for foreign investors.
Enhancing R&D and Innovation: To maintain its competitiveness and attract FDI in
high-tech sectors, South Korea should continue to prioritize R&D investment and
foster innovation. Collaboration between universities, research institutions, and the
private sector should be encouraged to develop new technologies and enhance the
country's intellectual property rights protection.
Strengthening Intellectual Property Rights (IPR) Protection: Ensuring robust IPR
protection is essential for attracting FDI in knowledge-intensive industries. South
Korea should strengthen its legal framework and enforcement mechanisms to
safeguard intellectual property rights and provide a level playing field for foreign
investors.

- Policy recommendations for VietNam

Based on the lessons Vietnam can learn from Korea's FDI attraction, here are some
policy suggestions for Vietnam to attract FDI effectively:
Develop a flexible socio-economic development strategy that is conducive to
investment. Vietnam should focus on creating a favorable investment environment
and implementing policies that promote investment.
The current world situation includes many unstable economic, financial, political,
supply chains, fuel scarcity, war... all make it difficult to attract FDI. In the short term,
at least until the end of the first half of 2023, the trend of outward direct investment in
major economies will continue to decline, before the world economy can recover its
growth momentum. . Only then can FDI into Vietnam recover its growth momentum.
The problem is that Vietnam must act quickly in the race to attract FDI. Multinational
companies always have a global investment strategy, and normally they only change
once every 5-7 years. However, in times of crisis like the present, they will probably
adjust as well. Therefore, Vietnam also needs to be flexible according to the world
situation to change.
Prioritize investment in human resource development. Vietnam should invest in
vocational training to create a highly skilled workforce, which is crucial for
attracting FDI.
In fact, the majority of FDI into Vietnam only focuses on industries that are market-
exploiting or labor-intensive such as textiles, real estate, manufacturing, and

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processing...with relatively low value added. If FDI in the previous period has
contributed to promoting economic growth through attracting capital, improving
production capacity, employment, expanding commodity export markets, etc. In the
next period, it is necessary to have a fundamental policy adjustment to overcome
inherent limitations, especially spillover effects and technology transfer. Prioritize
attracting high-tech projects of transnational corporations in the fields of
manufacturing industry, hi-tech agriculture, information technology and service
sectors that Vietnam has potential and comparative advantage.
Invest in science and technology infrastructure, including the establishment of key
technology research institutes and national research and implementation projects.
Concentrating capital for the development of large economic groups: Currently,
corporations and corporations hold large resources but make single investments, lack
cohesion, and have not yet poured capital in the field of leading and enhancing the
competitiveness of the economy. Vietnam should concentrate capital for the
development of large economic groups (similar to Korea's chaebols) to become the
core for economic development. This can be done by providing special support for
investment and development of these groups, and by encouraging state and private
capital to invest in them.
Actively exploit the private sector to participate in development investment. Vietnam
should encourage the private sector to invest in development, along with domestic
capital, FDI and aid.
Use budget capital to regulate macro-economy. Vietnam should establish a
National Investment Fund to protect investment and development for key industries
and continue to allocate financial resources, prioritizing oriented industries.
Focus on investment and development of small and medium enterprises. Vietnam
should require domestic and foreign commercial banks to spend a certain percentage
of their capital on loans to serve small and medium-sized enterprises, of which local
banks must spend mainly on lending capital to serve these enterprises.
Promote competition in allocating the State's development investment capital to
improve the efficiency of capital use. Vietnam should promote investment
liberalization, gradually reduce protectionist policies, and develop medium- and long-
term capital plans to increase the initiative for localities, ministries and branches.

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12. Services: Concept, characteristics, classification, roles for economic
development, and development of services in the World Economy. (Hồng Minh)
12.1. Concept
The production and consumption of intangible inputs and outputs and thus services
stand in contrast to manufacturing, ... (Stutz & Warf (2015)).
A service is an intangible product representing any action or activity to provide a
solution to another party without involving the transfer of physical goods from the
provider to the customer.
12.2. Characteristics
(1) Intangibility: have no physical substance
(2) Inseparability: consumed and produced at the same time
(3) Heterogeneity: be unique and always different each time they are provided
(4) Perishability: can not save, put in storage, transport, or resell the services.
12.3. Classification
(slide + p215 sách the world economy)
- Producer services
+ Finance, insurance, real estate (FIRE)
+ Professional and business services (legal, finance, marketing, computer science,
engineering, architecture, medical, …)
- Transportation and communications
- Wholesale and retail trade
- Consumer services
+ Eating, drinking, repair and maintenance
+ Entertainment, tourism, …
- Government services Government service means a development where municipal,
provincial, or federal government services are provided directly to the public (custom,
taxation services, postal distribution services, …)
- Nonprofit services: Services for the poor, disable person, disaster recovery, …
(finance, education, infrastructure, …)

Question: Are all services profitable? => F

Cases which beneficiaries don’t have to pay any fees:

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Charity: The Vietnam Red Cross Society (VRC) Central Committee has handed over
$100,000 each to Red Crescent organizations of Turkey and Syria to support their
earthquake recovery efforts; Social protection centers, orphanages; Red Cross
organization provides free medical examination and treatment.
UNICEF helps Vietnam improve sanitation, clean water; build schools for children
under disadvantaged circumstances => Eradicate illiteracy; eliminate poverty and
hunger
Cases which beneficiaries have to pay small fees:
Social policy banking services for poor households: eg loan support package with low
interest rate, longer loan term and repayment => children have the opportunity to
study and practice professional skills to go to work.
Corporate finance: preferential interest rates during the Covid-19 epidemic

12.4. Roles for economic development

Question: Why does the service sector play an important and increasing role in
economic development?
(1) The contribution of services to economies has increased over time (growth
rate, proportion in GDP, export values).

Figure 1: Annual growth rate of services

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 Figure 2: Proportion of services in GDP

Figure 3: Proportion of services in services in Vietnam

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 Figure 4: Service exports

Figure 5: Service exports in VN

(2) Services are predominant in employment.
The service has great development potential and is attractive to employees. In
Vietnam, the proportion of workers working in the service sector is increasing while
that of agricultural workers tends to decrease.

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 Figure 6: Employment in services

Figure 7: Employment in services in VN

(3) Services are prevalent in foreign direct investment- greenfield of investment.
Due to the increasing demand for services for production, the development prospects
of the service sector is increasing. As a result, it leads to attracting many domestic and
foreign investors. For example, in Vietnam's agricultural production sector,
production households are using financial services such as capital mobilized from
banks or mobile banking payment support services to minimize risks when paying in
cash as well as facilitate their suppliers and customers in payment.
12.5. Development of services in the World Economy
- IT services

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- Industrial Revolution 4.0, digital conversion
- Logistics – storages, transportation, distribution
- Finance
- Trade services
- Tourism services
- Medical services
- Educational service

ĐỀ THI TIẾNG VIỆT

Đề 1
Câu 1: Di chuyển lao động quốc tế chỉ chịu ảnh hưởng bởi các yếu tố kinh tế
( Đ/S giải thích)
Question 1: International labor movement is only affected by economic factors
(T/F explained)
False. While economic factors play a significant role in influencing the International
labor movement, it is not solely affected by economic factors. Various non-economic
factors also impact labor movements across borders. These factors can include social,
political, cultural, and legal considerations. For example, social and cultural factors
such as language barriers, cultural differences, and social networks can influence the
decisions of individuals to migrate for work. Political factors, such as immigration
policies, labor laws, and bilateral agreements, can also shape the movement of labor
between countries. Additionally, labor movements may be driven by factors like
conflicts, political instability, or environmental conditions in certain regions.
Câu 2: VN cần phải áp dụng đồng bộ các biện pháp để đảm bảo an ninh lương
thực (Đ/S giải thích)
Vietnam needs to apply measures to ensure food security, true or false.
True. Vietnam, like any other country, needs to apply measures to ensure food
security. Food security refers to the availability, accessibility, and affordability of safe
and nutritious food for all people. It is a critical aspect of a nation's well-being and
plays a vital role in the socio-economic development of a country.

84
Vietnam is an agrarian country where agriculture plays a significant role in the
economy. Ensuring food security is crucial to meet the dietary needs of its population,
stabilize prices, reduce poverty, and promote overall socio-economic stability.

To achieve food security, Vietnam can implement various measures, including:

Increasing agricultural productivity: Promoting technological advancements,

improving irrigation systems, enhancing farming practices, and using high-yield crop
varieties can help increase agricultural productivity.

Diversifying agricultural production: Encouraging a diverse range of crops, livestock,

and aquaculture can reduce dependency on a single crop and enhance resilience
against natural disasters and market fluctuations.

Enhancing storage and processing facilities: Developing efficient storage and

processing infrastructure can help reduce post-harvest losses and improve food quality
and safety.

Investing in rural infrastructure: Improving rural infrastructure such as roads,

transportation networks, and market facilities can facilitate the smooth movement of
agricultural products from farms to markets, reducing wastage and ensuring timely
access to food.

Promoting sustainable farming practices: Encouraging sustainable agriculture

practices such as organic farming, integrated pest management, and water
conservation can protect the environment, enhance productivity, and ensure long-term
food security.

Strengthening agricultural research and extension services: Investing in research and

development in agriculture, providing farmers with access to technical knowledge,
and disseminating best practices can improve productivity and help farmers adapt to
changing conditions.

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Implementing social safety nets: Establishing social safety nets, such as targeted
subsidies, food assistance programs, and conditional cash transfers, can provide a
safety net for vulnerable populations during times of food shortage or price volatility.

Câu 3: nêu vai trò và đặc điểm của 1 ngành công nghiệp chế tạo trên thế giới
hoặc ở VN ( có thể chọn 1 ngành nào đấy nhá, t cho nhiều ngành)
1. Textile and garment
Textile and garment industries are significant sectors both globally and in Vietnam.
Here are the characteristics of these industries on a global scale and specifically in
Vietnam:

Global Characteristics:

Size and Employment: The textile and garment industry is one of the largest and most
labor-intensive sectors globally. It employs millions of workers worldwide,
particularly in developing countries where labor costs are relatively lower.

Global Value Chains: The industry operates through complex global value chains,
with different stages of production often taking place in different countries. For
example, fabric production, cutting, sewing, and assembly may occur in separate
locations, often in multiple countries, before the final product reaches consumers.

Trade and Export Orientation: The textile and garment industry is highly export-
oriented. Many countries specialize in the production of textiles and garments for
international markets, and trade agreements and preferences play a crucial role in
shaping global market dynamics.

Rapid Fashion Cycles: The industry is characterized by fast fashion cycles, with
trends and consumer preferences changing rapidly. This puts pressure on
manufacturers to respond quickly to market demands, resulting in short production
lead times and frequent product turnover.

Characteristics in Vietnam:

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Export Growth: Vietnam has emerged as a major player in the global textile and
garment industry. It has experienced significant export growth, becoming one of the
world's largest textile and garment exporters. Vietnam's low labor costs, skilled
workforce, and favorable trade agreements (such as the Comprehensive and
Progressive Agreement for Trans-Pacific Partnership - CPTPP) have contributed to its
competitiveness.

Vertical Integration: Vietnam has seen an increase in vertical integration within its
textile and garment industry. Many companies now handle multiple stages of the
production process, from spinning yarn to manufacturing finished garments. This
integration allows for greater control over the supply chain and cost efficiencies.

Foreign Investment: Vietnam has attracted substantial foreign direct investment (FDI)
in the textile and garment sector. International companies have established production
facilities in the country to benefit from its favorable business environment, including
investment incentives, infrastructure development, and a young and abundant labor
force.

Sustainability Initiatives: Like the global industry, sustainability has gained

importance in Vietnam's textile and garment sector. Efforts are being made to improve
environmental practices, promote ethical labor standards, and reduce the industry's
carbon footprint. These initiatives aim to align with international sustainability
requirements and cater to growing consumer demand for sustainable fashion.

2. Automobiles
Mass Production: Automobile manufacturing is characterized by mass production
techniques. Henry Ford's introduction of the assembly line in the early 20th century
revolutionized the industry by enabling efficient production of vehicles on a large
scale. This approach continues today, with automakers using advanced manufacturing
processes and automation to produce millions of vehicles each year.

Diverse Segments and Models: The global automobile market offers a wide range of
vehicle segments and models to cater to different customer needs and preferences.
These segments include sedans, SUVs, trucks, sports cars, electric vehicles, and more.
Automakers strive to provide a diverse portfolio to attract consumers across various
demographics and lifestyles.

87
Technological Advancements: Automobiles have witnessed significant technological
advancements over the years. Innovations include improved fuel efficiency, hybrid
and electric powertrains, autonomous driving capabilities, advanced safety features,
connectivity, and infotainment systems. The industry continually invests in research
and development to enhance vehicle performance, efficiency, and user experience.

Global Supply Chains: Automobile manufacturing relies on complex global supply

chains. Components and parts are sourced from various suppliers around the world,
and vehicle assembly often takes place in different countries. This global
interconnectedness allows manufacturers to access specialized components, reduce
costs, and adapt to regional market demands.

Environmental Considerations: Environmental concerns have increasingly influenced

the automobile industry. Regulations aimed at reducing emissions and improving fuel
efficiency have driven automakers to develop greener technologies. This has led to the
proliferation of hybrid and electric vehicles, as well as the exploration of alternative
fuel sources like hydrogen. Sustainability initiatives and circular economy practices
are also gaining prominence.

Market Competition: The global automobile industry is highly competitive, with

numerous established and emerging automakers vying for market share. Competition
is based on factors such as price, performance, reliability, brand reputation, design,
and innovation. Automakers strive to differentiate their products and services to attract
and retain customers in a crowded market.

Regional Variances: Automobile markets and preferences can vary across regions.
Factors such as consumer preferences, infrastructure development, regulatory
frameworks, economic conditions, and cultural factors influence the types of vehicles
that dominate specific markets. For example, compact cars and motorcycles may be
more prevalent in densely populated urban areas, while larger vehicles like trucks and
SUVs are popular in regions with rugged terrain or a preference for spaciousness.

3. Electronics

Global Characteristics:

88
Technological Advancements: The electronics industry is marked by rapid
technological advancements. Companies constantly strive to innovate and develop
new products with improved features, functionality, and performance. Advancements
include miniaturization, increased processing power, higher storage capacities,
connectivity, and integration of smart technologies.

Global Supply Chains: The electronics industry relies on complex global supply
chains. Components, parts, and raw materials are sourced from various suppliers
worldwide, and manufacturing processes often take place in different countries. This
interdependence allows for cost optimization, access to specialized expertise, and
leveraging regional advantages.

Consumer Electronics: The global market for consumer electronics is significant,

catering to a wide range of personal and household needs. This includes smartphones,
tablets, laptops, televisions, audio systems, gaming consoles, smart home devices, and
wearable technology. Constant demand for new and upgraded devices drives product
innovation and market competition.

Industrial Electronics: Beyond consumer products, the electronics industry also serves
industrial and commercial sectors. Industrial electronics include automation systems,
control devices, robotics, sensors, communication equipment, and more. These
technologies are essential for manufacturing processes, infrastructure development,
energy management, and other industrial applications.

Characteristics in Vietnam:

Manufacturing Hub: Vietnam has become an important manufacturing hub for

electronics, attracting investment from both domestic and foreign companies. Its
favorable business environment, skilled workforce, competitive labor costs, and
strategic location make it an attractive destination for electronics manufacturing.
Many global electronics brands have set up production facilities in Vietnam to take
advantage of these factors.

Export-oriented: Vietnam's electronics industry is heavily export-oriented. The

country exports a significant portion of its electronics production to global markets,

89
including the United States, Europe, and other Asian countries. Export-oriented
policies, trade agreements (such as the CPTPP), and favorable logistics infrastructure
support Vietnam's position as a major exporter of electronic products.

Manufacturing Value Chain: Vietnam's electronics industry is primarily involved in

assembly and manufacturing processes, with a focus on original equipment
manufacturing (OEM) and electronics contract manufacturing services (EMS). This
means that while Vietnam contributes to the global electronics supply chain, it often
relies on imported components and parts for assembly.

Increasing Domestic Demand: With a growing middle class and rising disposable
incomes, domestic demand for electronics in Vietnam is also expanding. This has led
to increased sales of consumer electronics, smartphones, home appliances, and other
electronic devices within the country. Domestic manufacturers and retailers cater to
this growing demand, alongside imports.

Government Support and Incentives: The Vietnamese government has implemented

policies and initiatives to promote the growth of the electronics industry. These
include tax incentives, infrastructure development, support for research and
development, and fostering partnerships between domestic and foreign companies.
The government's efforts aim to enhance competitiveness, attract investment, and
develop a robust electronics ecosystem.

Câu 4: Trình bày tình hình đầu tư FDI của 1 nước tự chọn vào VN trong 5 năm
gần đây
South Korea is currently the largest investor in Vietnam with more than 9,000
enterprises and the total accumulated investment capital as of October 2020 reached
nearly 70.4 billion USD, accounting for 18.5% of the total FDI invested in Vietnam.
Vietnam with 8,934 projects. In the first 10 months of 2020, Korea ranked second in
the list of countries and territories with large investments in Vietnam, with 3.42 billion
USD, behind Singapore with 7.51 billion USD. Having a $4 billion gas power project
makes it easy for Singapore to take the lead. However, in terms of the number of new
projects, Korea still ranks first, with 528 projects.

Major sectors: Korean investment in Vietnam has been prominent in various sectors.
Manufacturing has been a key area, with Korean companies investing in electronics,

90
textiles, automobile parts, and other related industries. Additionally, there have been
investments in sectors such as energy, construction, and services.

Samsung's investments: Samsung Electronics, one of the largest Korean

conglomerates, has been a major contributor to Korean FDI in Vietnam. Samsung has
invested heavily in the country, establishing multiple manufacturing facilities in
various provinces. These facilities produce smartphones, consumer electronics, and
other products, contributing to Vietnam's export growth.

Other significant investments: Apart from Samsung, other Korean companies have
also made notable investments in Vietnam. These include companies like LG, Lotte,
Hyundai, and Posco, which have invested in sectors such as retail, hospitality, real
estate, and steel production.

Regional distribution: Korean FDI has been spread across different regions in
Vietnam. While Ho Chi Minh City and surrounding areas, including Binh Duong and
Dong Nai provinces, have traditionally attracted a significant portion of investments,
there has been an increasing focus on other regions such as Hanoi and central
Vietnam.

Government initiatives: The Vietnamese government has actively promoted foreign

investment and created a favorable business environment. Measures like investment
incentives, simplified administrative procedures, and infrastructure development have
helped attract Korean investors to Vietnam.

Free Trade Agreement: The Vietnam-Korea Free Trade Agreement (VKFTA), which
took effect in 2015, has played a role in boosting bilateral trade and investment. The
agreement has led to the elimination or reduction of tariffs on various goods and
services, providing a further impetus for Korean businesses to invest in Vietnam.

Please note that the figures and information provided are based on historical data up
until 2021. For the most up-to-date and accurate information on the current situation,
it is recommended to refer to recent reports, publications, or official sources from
relevant institutions or government bodies.

91
Đề 2.
Question 1: Vietnam's tariff reduction according to the roadmap in international
economic integration is in line with the trend (Hồng Minh) => True
- Global Trade Integration: Vietnam has been actively participating in various free
trade agreements, such as the Comprehensive and Progressive Agreement for Trans-
Pacific Partnership (CPTPP) and the Vietnam-European Union Free Trade Agreement
(EVFTA). These agreements require Vietnam to reduce tariffs and create favorable
conditions for imports and exports of goods and services among member countries.
- Embracing Openness: The trend in the global economy is towards greater openness
and trade liberalization. Many countries are reducing tariffs and other trade barriers to
promote international trade and economic growth. By aligning with this trend,
Vietnam can attract more foreign investment, boost exports, and integrate further into
the global value chains.
- Regional Economic Integration: Vietnam's tariff reduction is also aligned with
regional economic integration efforts. Southeast Asian countries, for example, are
working towards deeper economic integration through the Association of Southeast
Asian Nations (ASEAN) and the ASEAN Economic Community. Lowering tariffs
helps facilitate intra-regional trade and strengthens economic ties with neighboring
countries.
- Competitiveness Enhancement: By reducing tariffs, Vietnam aims to level the
playing field for domestic and foreign businesses operating in the country. This can
enhance competitiveness by providing access to new sources of supply, technology,
and production processes, thereby stimulating competition and improving economic
productivity.
- Attracting Foreign Direct Investment (FDI): Tariff reduction can create favorable
conditions for foreign investors to invest in Vietnam. This can facilitate technology
transfer, enhance production scale and efficiency, generate employment opportunities,
and contribute to Vietnam's economic growth.
- Promoting Export Growth: Lower tariffs can provide Vietnam's export-oriented
businesses with a competitive advantage in international markets. By reducing trade
costs and facilitating access to new markets, Vietnam can promote exports of goods
and services, generate income, and drive economic growth.
However, it is important to carefully manage the tariff reduction process and ensure it
is aligned with the country's situation and needs. Safeguard measures and fair
competition should be established to protect sensitive industries and ensure
sustainable development of the economy.

92
Question 2: Analyze food security of Vietnam and propose solutions. (Hồng
Minh)
2.1 Analyze food security of Vietnam
- Availability of food:
Vietnam is one of the world's largest rice exporters, and rice is a staple food in the
country. However, there is a need to diversify the food production system to reduce
dependence on a single crop.
Climate change poses a significant challenge to food availability in Vietnam, with
increased risks of extreme weather events such as droughts and floods. Developing
climate-resilient crops and promoting sustainable agricultural practices can help
mitigate these risks.
- Access to food:
Despite improvements in recent years, there are still disparities in food access between
rural and urban areas, as well as among different socioeconomic groups. Addressing
income inequality and improving rural infrastructure can help enhance access to food
for vulnerable populations.
Enhancing transportation and logistics systems can reduce food loss and waste,
ensuring efficient distribution and availability of food across the country.
- Food utilization and nutrition:
Malnutrition, both undernutrition and overnutrition, remains a concern in Vietnam.
Promoting nutrition education and awareness, especially among vulnerable groups
such as children and pregnant women, is crucial.
Diversifying diets and promoting the consumption of nutritious foods, including fruits,
vegetables, and protein sources other than rice, can improve overall nutrition and
health outcomes.
- Stability of food supply:
The COVID-19 pandemic highlighted the importance of maintaining a stable food
supply chain. Strengthening food storage and preservation capacities, as well as
establishing contingency plans for emergencies, can help ensure food security during
crises.
Supporting small-scale farmers and promoting sustainable agricultural practices can
contribute to the stability of food supply by reducing dependence on external inputs
and enhancing resilience to shocks.
2.2 Propose solutions
- Enhance agricultural productivity and diversify crops:

93
Invest in research and development of high-yielding and climate-resilient crop
varieties.
Promote sustainable farming practices, such as agroecology and organic farming, to
improve soil fertility and reduce reliance on chemical inputs.
Support farmers in adopting modern technologies and techniques for efficient and
sustainable agricultural production.
- Strengthen rural infrastructure and access to markets:
Improve rural transportation networks to facilitate the timely and efficient movement
of agricultural products from farms to markets.
Develop storage and cold chain facilities to reduce post-harvest losses and ensure the
availability of food throughout the year.
Provide financial and technical support to smallholder farmers to improve their market
access and bargaining power.
- Invest in nutrition education and public health:
Increase awareness about balanced diets and healthy eating habits, particularly among
vulnerable groups.
Implement nutrition programs in schools and communities to improve the nutritional
status of children and pregnant women.
Encourage food fortification and diversification to address micronutrient deficiencies.
- Strengthen resilience to climate change and natural disasters:
Develop early warning systems and climate-smart agricultural practices to mitigate the
impact of extreme weather events.
Promote water management strategies, such as efficient irrigation systems and water
conservation techniques.
Encourage the use of renewable energy and sustainable practices to reduce greenhouse
gas emissions in the agricultural sector.
- Enhance collaboration and coordination:
Foster partnerships between government agencies, research institutions, NGOs, and
the private sector to collectively address food security challenges.
Promote regional and international cooperation for knowledge exchange and sharing
of best practices in agriculture and food security.
Overall, improving food security in Vietnam requires a comprehensive approach that
integrates sustainable agriculture, rural development, nutrition education, and climate

94
resilience. By implementing these proposed solutions, Vietnam can enhance its food
security and ensure a sustainable and nutritious food supply for its population.
Question 3: So sánh cơ cấu GDP ngành của Việt Nam với 1 nước khác trong 3-5
năm gần đây.

95
Đề 3
câu1: Chiến tranh thương mại Mỹ Trung là vấn đề mang tính chất toàn cầu (Đ/S
giải thích)
True. the trade war between the United States and China is a global issue because it
has significant implications for the global economy. The United States and China are
the two largest economies in the world, and they are major trading partners with each
other and with many other countries.
The trade war has led to the imposition of tariffs by both countries on a wide range of
goods, which has disrupted supply chains and increased costs for businesses and
consumers in both countries and beyond. The uncertainty over the trade war has also
led to increased volatility in financial markets, and concerns about the potential for a
global recession.
The trade war has not only affected the United States and China but also countries
around the world, including those that have close economic ties with China or the
United States. For example, countries that export raw materials or intermediate goods
to China or the United States may face reduced demand due to the tariffs imposed by
both countries. Additionally, countries that export finished goods to both China and
the United States may also face challenges due to disrupted supply chains.
Thus, the trade war between the United States and China has become a global issue
due to its impact on the global economy and its widespread effects on the trade and
commerce of many countries beyond just the United States and China.

96
Câu 2: sự dịch chuyển dòng vốn giữa các quốc gia chỉ tuân theo hệ thống luật
pháp quốc tế (Đ/S giải thích) - Hà Linh

The movement of capital between countries is only subject to the international

legal system, True or false.

False. The movement of capital between countries is subject to both international legal
systems and domestic regulations. The international legal system, which includes
various international agreements and treaties, provides a framework for governing
cross-border capital flows. Examples of international agreements related to capital
flows include bilateral investment treaties (BITs), regional trade agreements, and
agreements under the World Trade Organization (WTO).
However, countries also have the authority to impose their own regulations and
restrictions on capital movements to safeguard their domestic economies, financial
stability, or national security interests. Governments often implement capital controls,
such as limits on foreign exchange transactions, restrictions on capital outflows or
inflows, and regulatory requirements for foreign investments. These regulations are
typically established and enforced through domestic laws and regulations.

Câu 3: phân tích 1 số vấn đề kttg gần đây và nêu ảnh hưởng

Russo-Ukrainian War
On February 24, 2022, Russian President Vladimir Putin ordered the opening of a
"special military operation" in Ukraine. This war has put pressure on the global
economy throughout 2022 and until now the parties involved have not been able to
find a solution to end the war. As both Russia and Ukraine are vital links in the
world's food and energy supply chains, the war has had a series of repercussions.
The Organization for Economic Co-operation and Development (OECD) says that the
Russia-Ukraine war has caused "a huge and historic energy shock", fueling inflation,
eroding confidence, undermining purchasing power and increasing risk around the
world. So, the recovery of the global economy after the recession caused by the
Covid-19 pandemic has gone astray in 2022.
After the outbreak of war, many Western sanctions affect Russia. Meanwhile,
Europe's weakness is its dependence on Russian energy supplies. The flow of Russian
gas to the European Union (EU) has been repeatedly cut - what the West accuses of

97
Russia "weaponizing energy", which Russia explains is due to technical problems - in
the The largest pipeline, Nord Stream 1, has been completely closed since early
September. Gas prices in Europe set an all-time record at nearly 350 Euro/megawatt
hour in August, nearly five times more than that at the beginning of the year. Oil
prices also skyrocketed because Russia is the world's leading crude oil exporter. In
March, the world oil price reached an all-time record of 147 USD/barrel set in 2008.
Along with that, grain prices also increased sharply because Russia and Ukraine are
two key exporters of these products.

Combined with the supply chain congestion during the Covid-19 pandemic that have
not yet been resolved, the food and energy price rush has caused inflation to rise
dramatically in most economies. In the US, inflation surpassed 9% in the summer, the
highest in more than 40 years. In the Eurozone, inflation set a record at 10.6% in
October. By some estimates, global inflation surpassed 12% in October, 2022.
To help people overcome the "price increase", governments in the UK and Europe
have spent hundreds of billions of dollars in subsidies, while resorting to rare
measures such as imposing a ceiling on gas prices. Although gas prices in Europe
have recently "cooled down" thanks to abundant reserves, the energy crisis is expected
to remain intense in 2023, when Russia may completely cut off gas supplies to
Europe. in response to the recently introduced sanctions, including the Group of 7
developed industries (G7) imposing a price ceiling of 60 USD/barrel on Russian crude
oil and the EU banning the import of crude oil transported by Russia through sea.

Interest rate race of central banks

To "brake" inflation, central banks have no choice but to raise interest rates. It is worth
mentioning that monetary policymakers of many countries have underestimated the
risk of inflation in 2021, including the US Federal Reserve (Fed), so when inflation
accelerates in In 2022, they had to engage in an interest rate race to stop the price
escalation, even though the consequences of raising interest rates were to slow down
the economy.

The Fed is the major central bank leading this race, with all 7 lifts, including 4
consecutive lifts with a super-large jump of 0.75 percentage points - marking the
strongest tightening cycle of the year since the 1980s. Other major central banks such
as the European Central Bank (ECB) and the Bank of England (BOE) have also
reversed years of ultra-loose monetary policy. Emerging economies from Thailand
and Vietnam to Argentina and Türkiye simultaneously raised interest rates.

98
The Central Bank of China (PBOC) and the Central Bank of Japan (BOJ) are two
exceptions, staying out of the global interest rate race, because China and Japan both
prioritize economic recovery and inflation in these two economies are basically kept
low.

Câu 4: phân tích vai trò đặc điểm của nền nn thế giới gần đây

In recent years, the world economy has undergone significant changes and faced
various challenges. Here are some key roles and characteristics that have emerged:

Globalization: The world economy has become increasingly interconnected and

interdependent. Globalization has facilitated the flow of goods, services, capital, and
information across borders. Multinational corporations play a vital role in driving
global trade and investment.

Economic Growth: Despite some fluctuations, global economic growth has been
observed. Emerging economies, such as China and India, have experienced rapid
growth, contributing to the overall expansion of the world economy. However, growth
rates have varied across countries and regions.

Technology and Innovation: Technological advancements have transformed various

sectors and industries. Digitalization, automation, and artificial intelligence have
improved productivity, efficiency, and communication. Tech-driven companies have
emerged as significant players, driving economic growth and job creation.

Trade and Protectionism: International trade has continued to play a crucial role in
the world economy. However, there has been a rise in protectionist measures and trade
tensions, notably between the United States and China. Tariffs, trade barriers, and
renegotiation of trade agreements have affected global trade patterns.

Financial Markets: The world economy is highly influenced by financial markets.

Stock exchanges, currency markets, and bond markets have seen significant

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fluctuations. Central banks' policies, such as interest rate adjustments and quantitative
easing, have aimed to stabilize economies during periods of uncertainty.

Inequality: Income and wealth inequality have been persistent challenges in recent
years. The gap between the rich and the poor has widened in many countries, leading
to social and political implications. Addressing inequality has become an important
issue on the global agenda.

Sustainable Development: The world economy is increasingly focusing on

sustainable development. Environmental concerns, climate change, and resource
depletion have led to greater emphasis on renewable energy, green technologies, and
sustainable business practices. Sustainability goals, such as the United Nations'
Sustainable Development Goals (SDGs), have gained prominence.

Economic Challenges: The world economy has faced significant challenges,

including the global financial crisis of 2008, the Eurozone debt crisis, and the
COVID-19 pandemic. These events have had profound impacts on growth,
employment, and fiscal stability. Governments and international organizations have
responded with fiscal stimulus, monetary policy measures, and coordinated efforts.

Regional Integration: Regional economic integration has progressed in various parts

of the world. Examples include the European Union (EU), the Association of
Southeast Asian Nations (ASEAN), and the African Continental Free Trade Area
(AfCFTA). These initiatives aim to enhance economic cooperation, reduce trade
barriers, and promote regional stability.

Demographic Changes: Aging populations and changing demographics have

significant implications for the world economy. Countries are grappling with the
challenges of providing healthcare, pensions, and social security to an aging
workforce while addressing labor market dynamics and skill shortages.

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Đề 4
C1: con người là nguồn lực quan trọng nhất.... quyết định đến phát triển kinh tế
của quốc gia (Đ/S. Gt)
Option 1: true
Humans are the most important factor in economic development because they are the
ones who create, innovate, and drive economic progress. They are the ones who come
up with new ideas, develop new technologies, and create new products and services.
They also provide the labor force needed to produce, market, and sell these products
and services. In addition, humans are the consumers who create demand for goods and
services, which in turn drives the economy.
So, investing in education, training, and healthcare not only helps to develop labor
productivity and skills, but also increases capital, technology standards. Beside
contributing to production factors, improving the education level of citizens also has
positive effects on demand factors and macro economic factors of the economy.
Option 2: false (additional)
However, this statement may be considered to be wrong in terms of economic
development in the short-term.
In short-term, investing in humans refers only to the act of increasing labor
productivity. Improving labor productivity may lead to a decrease in total GDP in
some cases.
1. Limited demand: If there is limited demand for goods and services in the economy,
increasing labor productivity may not increase GDP because there are not enough
customers to purchase the additional output.
2. Technological advancements: If there are technological advancements that allow
for the same level of output to be produced with fewer workers, increasing labor
productivity may not increase GDP because the increased productivity is offset by the
reduction in labor.
3. Resource constraints: If there are constraints on the availability of resources, such
as raw materials or energy, increasing labor productivity may not increase GDP
because there are not enough resources to produce the additional output.

C2: Các đặc điểm nổi bật của TMQT không ảnh hưởng đến tmqt VN (Đ/S. Gt)
False. The characteristics of international trade do affect Vietnam, as they do for any
other country engaged in international trade. International trade plays a significant role
in Vietnam's economy and has several impacts on the country. Some key
characteristics of international trade that affect Vietnam include:

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 - Economic growth: International trade has been a major driver of Vietnam's
economic growth. The country has embraced trade liberalization policies and
actively participates in global trade, leading to increased export opportunities
and foreign direct investment inflows.
- Export-oriented economy: Vietnam has become known for its exports of
various goods, including textiles, electronics, agricultural products, and
manufactured goods. The characteristics of international trade, such as global
demand, export competitiveness, and trade policies, directly impact Vietnam's
export performance and economic outcomes.
- Market access: International trade agreements and negotiations affect
Vietnam's market access to other countries. By joining regional trade
agreements like the Comprehensive and Progressive Agreement for Trans-
Pacific Partnership (CPTPP) and bilateral agreements, Vietnam gains
preferential access to foreign markets, which influences its export potential and
competitiveness.
- Foreign direct investment (FDI): International trade often goes hand in hand
with FDI. Vietnam has attracted significant FDI inflows, particularly in export-
oriented industries. The characteristics of international trade, such as market
size, trade policies, and investment climate, play a crucial role in determining
the level and nature of FDI in Vietnam.
- Exchange rates and competitiveness: International trade affects Vietnam's
exchange rates, which, in turn, influence the country's export competitiveness.
Fluctuations in exchange rates can impact the prices of exports and imports,
affecting Vietnam's trade balance and overall economic performance.
- Trade balance and current account: Vietnam's trade balance, which represents
the difference between exports and imports, is influenced by international trade
dynamics. The characteristics of international trade, including global demand,
trade policies, and exchange rates, can affect Vietnam's trade balance and,
consequently, its current account balance.

C3: phân tích tác động của sự gia tăng dân số đến kinh tế và mt. Liên hệ vn
● Effects
Positive:
Increased consumer demand: With more people in a country, there is an increase in
demand for goods and services, which can lead to increased production and economic
growth.

102
Increased labor force: A larger population means a larger pool of potential workers,
which can lead to increased productivity and economic output.
Increased innovation: A larger population can lead to greater innovation and
creativity, as there are more people with different backgrounds and skills to contribute
to the economy.
Increased tax revenue: A larger population means more taxpayers, which can result in
increased tax revenue for the government to invest in infrastructure and other
development projects.
Negative: Chép phần effects of population problem ở câu 6 trong đề cương

For Vietnam,
population growth to the golden population ratio has brought development
opportunities. Thanks to the abundant labor force, Vietnam has a comparative
advantage in labor-intensive industries such as textiles, garments, footwear, wood
processing, mechanical engineering, supporting industries.... Vietnam also attracts
many projects. FDI projects thanks to abundant and cheap labor.
However, Population growth also brings many problems to Vietnam, such as:
1. Unequal distribution of population: As the population continues to grow in
Vietnam, there is an uneven distribution of people throughout the country. Many
people flock to urban areas, causing overcrowding and putting a strain on resources.
Rural areas, on the other hand, may have a dwindling population, leading to
difficulties in sustaining local economies and providing services such as healthcare
and education.
2. The gap between rich and poor is getting bigger and bigger: With a rapidly growing
population, the income gap between the rich and poor is widening. Many people are
unable to find stable employment, leading to a rise in poverty. Meanwhile, the wealthy
become wealthier, leading to a stark contrast between living conditions and
opportunities for different segments of the population.
3. Short of Infrastructure: With the rapid growth of population in Vietnam, there has
been a significant strain on the country's infrastructure. The country's roads, public
transportation, and other public facilities are not keeping up with the increasing
demands. This has led to an increase in traffic congestion, longer commuting times,
and higher transportation costs. Additionally, the shortage of housing has led to
overcrowding, which further exacerbates the infrastructure problems.
4. Pollution: The growing population in Vietnam has also resulted in an increase in
pollution levels. With more people comes more traffic, more industrialization, and

103
more consumption, all of which contribute to air, water, and land pollution. The
pollution has resulted in a decline in the quality of life for many people in Vietnam. It
has also had negative impacts on the country's economy, as polluted environments can
lead to health problems, which can reduce worker productivity and increase healthcare
costs.
Addressing these issues will require significant investments in infrastructure
development, better urban planning, and stronger environmental regulations.

C4: đánh giá tình hình nhập khẩu của VN với 1 nước trong 5 năm gần đây. Giải
pháp để nhập khẩu hiệu quả
- The import situation between Vietnam and China in recent years has been
characterized by a significant trade relationship, with China being Vietnam's
largest trading partner.
+ In terms of trade volume and growth: China has been Vietnam's largest
import source for several years. In recent years, the bilateral trade
volume between Vietnam and China has been substantial and has shown
both growth and fluctuations. The total import value from China to
Vietnam has generally increased over time, reflecting the strong
economic ties between the two countries.
+ In terms of imports from China: Vietnam relies on China for a wide
range of imports, including machinery and equipment, electronics,
textiles, chemicals, and consumer goods. China's manufacturing
capabilities and competitive prices make it an attractive source for these
products. Vietnam's imports from China have been driven by its
domestic consumption, industrial production, and export-oriented
manufacturing sectors.
+ The import situation has resulted in a trade imbalance, with Vietnam
importing more goods from China than it exports to China. This trade
deficit has been a concern for Vietnam, as it affects the overall balance
of trade and the current account balance.
+ Vietnam's heavy dependence on imports from China has raised concerns
about supply chain vulnerabilities and risks. Disruptions in China's
manufacturing sector, such as during the COVID-19 pandemic, have
had an impact on Vietnam's import availability and prices.
+ Trade tensions between China and the United States have also had
indirect effects on Vietnam's import situation with China. As a result of
the U.S.-China trade dispute, some companies have relocated their

104
 production or sourcing activities from China to Vietnam. This has led to
changes in the import landscape and increased imports of intermediate
goods from China for Vietnamese manufacturing.
- To improve the situation of imports from China and enhance Vietnam's import
landscape, several solutions can be considered
+ Vietnam should actively seek to diversify its import sources beyond
China. This involves identifying alternative countries and regions with
competitive advantages in manufacturing and sourcing the desired
goods. Strengthening trade relationships with countries like South
Korea, Japan, the United States, and European Union can provide more
options and reduce dependence on a single country.
+ Encouraging domestic production and import substitution can reduce
reliance on imported goods. The government can provide incentives and
support to domestic industries to enhance their competitiveness and
production capacity. This includes investing in research and
development, improving infrastructure, and fostering innovation and
technology adoption.
+ Participating in regional and bilateral trade agreements can create more
favorable trade conditions and expand market access for Vietnamese
imports. Negotiating mutually beneficial trade agreements with key
trading partners can facilitate tariff reductions, streamline customs
procedures, and provide preferential treatment for Vietnamese products.
+ Streamlining customs procedures, reducing trade barriers, and
improving logistics infrastructure can enhance the efficiency of
importing goods. Simplifying documentation requirements,
implementing digital customs systems, and investing in transportation
infrastructure can reduce costs and time associated with imports.
+ Enhancing quality standards and certifications can increase the
competitiveness of Vietnamese imports. Encouraging adherence to
international standards, implementing effective quality control
measures, and promoting product certifications can build trust and
confidence among importers and consumers.

True or False bổ sung

1. The most global markets currently are markets for consumer products.

105
False. The most global markets currently are not markets for consumer products -
where national differences in tastes and preferences are still often important enough to
act as a brake on globalization—but markets for industrial goods and materials that
serve a universal need the world over.
2. The globalization of markets and production and the resulting growth of
world trade, foreign direct investment, and imports, all imply that firms
are finding their home markets protected from foreign competitors.
False. Globalization of all mentioned stages imply how trade and technology have
made the world into a more connected and interdependent place.
3. The WB has focused on policing the world trading system and making
sure nation-states adhere to the rules laid down in trade treaties. => False
The World Bank promotes long-term economic development and poverty reduction by
providing technical and financial support to help countries implement reforms or
projects, such as building schools, providing water and electricity, fighting disease,
and protecting the environment.
The IMF has three critical missions: furthering international monetary cooperation,
encouraging the expansion of trade and economic growth, and discouraging policies
that would harm prosperity.
4. WB gives an aid of 100 million dollars to VN for creating rural healthcare
facilities. This is an example of foreign direct investment. => False
Foreign direct investment (FDI) occurs when a firm invests resources in business
activities outside its home country. Meanwhile, the World bank’s function is
promoting long-term economic development and poverty reduction by providing
technical and financial support and does not look for interest from that.
5. The expansion of world trade implies that nations are becoming less
dependent on each other for important goods and services. => False
The expansion of world trade implies that nations are becoming more dependent on
each other for important goods and services.
6. The globalization of the world economy has resulted in a relative increase
in the dominance of US firms in the global marketplace.
False. The globalization of the world economy has resulted in a relative decrease in
the dominance of US firms in the global marketplace. Globalization leads to increased
competition. This competition can be related to product and service cost and price,
target market, technological adaptation, quick response, quick production by
companies etc. When a company produces with less cost and sells cheaper, it is able to
increase its market share.

106
 7. The shift toward a more integrated and interdependent world economy is
referred to as globalization.
True. Globalization refers to the shift toward a more integrated and interdependent
world economy. It has several facets, including the globalization of markets and the
globalization of production.
8. Globalization is a multidimensional process, reshaping the context of
security, health control and other governmental policies just as much as
their economic policies.
True. Globalization is the process by which ideas, knowledge, information, goods
and services spread around the world. In other words, as a basic megatrend of modern
world development, it is a complex and multidimensional phenomenon. It includes the
majority or even all areas of social, cultural, political and economic activities that go
beyond a state, its society and economy.
9. A company does not need a large size to facilitate and benefit from the
globalization of the market.
True. A company does not have to be the size of multinational giants to facilitate, and
benefit from, the globalization of markets. In the United States, for example, nearly
90% of firms that export are small businesses employing less than 100 people, and
their share of total U.S. exports has grown steadily over the past decade to now exceed
20 percent.
10. Companies hope to lower their overall cost structure or improve the
quality of functionality of their product offering through globalization of
production.
True. The globalization of production refers to the sourcing of goods and services
from locations around the globe to take advantage of national differences in the cost
and quality of factors of production.-> By doing this, companies hope to lower their
overall cost structure or improve the quality or functionality of their product offering,
thereby allowing them to compete more effectively.

107
 1. The most global markets currently are markets for consumer products.
False. The most global markets currently are not markets for consumer products -
where national differences in tastes and preferences are still often important enough to
act as a brake on globalization—but markets for industrial goods and materials that
serve a universal need the world over.

2. The globalization of markets and production and the resulting growth of

world trade, foreign direct investment, and imports, all imply that firms
are finding their home markets protected from foreign competitors.
False. The globalization of markets and production and the resulting growth of world
trade, foreign direct investment, and imports, all imply that firms are finding their
home markets competing with foreign competitors.

3. The WB has focused on policing the world trading system and making
sure nation-states adhere to the rules laid down in trade treaties. => False
The World Bank promotes long-term economic development and poverty reduction by
providing technical and financial support to help countries implement reforms or
projects, such as building schools, providing water and electricity, fighting disease,
and protecting the environment.

108
the World Trade Organization (WTO) is the only international organization dealing
with the global rules of trade. Its main function is to ensure that trade flows as
smoothly, predictably and freely as possible.

4. WB gives an aid of 100 million dollars to VN for creating rural healthcare

facilities. This is an example of foreign direct investment. => False
Foreign direct investment (FDI) occurs when a firm invests resources in business
activities outside its home country. Meanwhile, (ODA) is grant or concessional aid or
concessional credit (low-interest loan) from governments, United Nations agencies,
non-governmental organizations, international financial institutions (IMF, WB, ADB),
collectively known as foreign partners for the governments and people of the recipient
countries.

5. The expansion of world trade implies that nations are becoming less
dependent on each other for important goods and services. => False
The expansion of world trade implies that nations are becoming more dependent on
each other for important goods and services.

6. The globalization of the world economy has resulted in a relative increase

in the dominance of US firms in the global marketplace.
False. The globalization of the world economy has resulted in a relative decrease in
the dominance of US firms in the global marketplace. Globalization leads to increased
competition. This competition can be related to product and service cost and price,
target market, technological adaptation, quick response, quick production by
companies etc. When a company produces with less cost and sells cheaper, it is able to
increase its market share.

7. The shift toward a more integrated and interdependent world economy is

referred to as globalization.
True. Globalization refers to the shift toward a more integrated and interdependent
world economy. It has several facets, including the globalization of markets and the
globalization of production.

8. Globalization is a multidimensional process, reshaping the context of

security, health control and other governmental policies just as much as
their economic policies.
True. Globalization is the process by which ideas, knowledge, information, goods
and services spread around the world. In other words, as a basic megatrend of modern
world development, it is a complex and multidimensional phenomenon. It includes the
majority or even all areas of social, cultural, political and economic activities that go
beyond a state, its society and economy.

109
 9. A company does not need a large size to facilitate and benefit from the
globalization of the market.
True. A company does not have to be the size of multinational giants to facilitate, and
benefit from, the globalization of markets. In the United States, for example, nearly
90% of firms that export are small businesses employing less than 100 people, and
their share of total U.S. exports has grown steadily over the past decade to now exceed
20 percent.

10. Companies hope to lower their overall cost structure or improve the
quality of functionality of their product offering through globalization of
production.

True. The globalization of production refers to the sourcing of goods and services
from locations around the globe to take advantage of national differences in the cost
and quality of factors of production.-> By doing this, companies hope to lower their
overall cost structure or improve the quality or functionality of their product offering,
thereby allowing them to compete more effectively.

11. VN is a newly industrialized nation with a solid mix market economic

system in place
False
12. VN is one of the world’s agricultural centers with important port cities
that drive economy
Fales important ports -> poor ports
13. VN is a developing economy with a high important place on capitalism
False
14. VN is a developing economy transitioning from a command economy to a
mixed market economy
True

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