For this essay, we will be writing a summative report on:Trade, Integration, and Transformation: Evaluating Vietnam’s Trade Performance through the Lens of Comparative Advantage and Economic Integration
Please ensure that all information writen about vietnam in this essay is factual and has evidence to reinforce its factualness. Under each paragraph/section, please include a graph or table that reinforces the information spoken about in that paragraph as fact. Use as many sources as required with a minimum of 3. Ensure you have cited all sources used
1. Introduction (~200 words)
Assessment Purpose: Set the scope, identify the country, explain topic choice
- Introduce Vietnam and justify its selection as a case study.
- Outline the three topics:
- Comparative Advantage (Mandatory theory)
- Economic Integration (mandatory theory)
- Global Supply Chains & Foreign direct investment (mandatory theory)
- Briefly state why these are important to Vietnam’s trade success.
- Introduce report structure.
2. Background on Vietnam’s Economic Development (~400 words)
Criteria: Background Info (20%)
- Brief history of Vietnam’s transition to an open economy (post-Đổi Mới reforms).
- Current GDP, GDP per capita, export/GDP ratio, inflation, Gini index, etc.
- Major trading partners and export commodities (e.g., electronics, textiles).
- Highlight Vietnam’s global integration and development status.
- Data from: World Bank WDI, IMF, WTO, UNCTAD.
3. Section 1 – Gains from Trade via Comparative Advantage (~600 words)
Criteria: Key Concepts (45%)
- Explain comparative advantage theory (Ricardian framework) with Krugman et al. (2023) and other sources.
- Apply it to Vietnam: labour-intensive goods (textiles, agriculture) → capital-intensive shift (electronics).
- Discuss Vietnam’s sectoral specialization and global market access (e.g., Samsung’s role in exports).
- Use export data and productivity gains to show “gains from trade.”
- Evaluate whether the gains align with theory or deviate (e.g., value chain entanglement vs pure theory).
4. Section 2 – The Role of Economic Integration (~500–600 words)
Criteria: Key Concepts + Quality of Discussion + Data Use
- Define economic integration (FTAs, customs unions).
- Vietnam’s participation in:
- CPTPP
- ASEAN
- RCEP
- Bilateral agreements (EU-Vietnam FTA, US-Vietnam trade pact)
- Use trade data to show impact (pre- and post-agreement trade growth).
- Analyse how deeper integration reduced tariff barriers and encouraged investment.
- Evaluate both benefits (market access, investment) and drawbacks (vulnerability to global shocks or regional power asymmetry).
5. Section 3 – Global Supply Chains and Foreign Direct Investment (~500–600 words)
Criteria: Key Concepts + Quality of Discussion + Data Use
- Explain Vietnam’s position as a hub for global value chains (GVCs).
- Data on inward FDI (especially from South Korea, Japan, China, and the US).
- Role of multinational corporations (e.g., Samsung, Intel, Nike) in shaping export structure and industrial upgrading.
- Benefits: Technology transfer, job creation, infrastructure development.
- Challenges: Limited domestic value-added, wage suppression, environmental concerns.
- Support with trade flow charts, FDI inflow data, and industry examples.
6. Conclusion and Recommendations (~200–300 words)
Criteria: Quality of Discussion + Summary of Findings
- Summarize:
- How comparative advantage explains Vietnam’s trade gains
- How economic integration expanded market access
- How GVCs and FDI deepened Vietnam’s global ties
- Acknowledge key challenges (e.g., upgrading in value chains, over-dependence on external markets).
- Suggest practical recommendations:
- Invest in skill development and innovation
- Strengthen regional value chain integration
- Mitigate environmental/social risks of rapid export-led growth
7. References
Criteria: Referencing (10%)
- Use Harvard style
- Mix of academic sources (e.g., Krugman et al., UNCTAD, WTO reports) and data repositories (WDI, WITS, IMF, Vietnam’s Ministry of Planning & Investment)