Vietnam and Ghana Economy case study Flashcards
(10 cards)
what is vietnams economy like (sectors)
Mainly primary:
- largest rice exporter
- second largest coffee producer
- fish exporter
- rubber/forestry
Secondary:
- electronics/tech: samsung production hub
- textiles/garments
- automobile, toyota and honda
- ship building, steel and cement
Service sector:
- transport, tourism, banking
vietnam economy overview
- some primary product dependence despite industrialisation
- high domestic savings - fuelled Harrod-Domar tyle growth
- reliant on US
- low debt at 37% of GDP
- young workforce and 95% literacy rates
- strain on infrastructure - energy/transport
tourism in vietnam
- breathtaking landscapes
- cultural heritage, cuisine and affordable travel
- tourism boom shifting to Asia
- 678.3 trillion Vietnamese dong in 2023
ghana economic historic profile
- economy structure: shifted from cocoa to oil, mining and services
- economic crisis: high debt, inflation and falling exchange rate
- IMF bailout: defaulted in 2022 and secured $3 billion IMF bailout (2023)
- relied on debt relief and foreign aid
ghana current economy profile
- primary products: cocoa, gold and oil account for 70% of exports - 1.7% current account surplus
- low domestic savings constrain investment
- foreign exchange gap: $2.1 B trade deficit - shortage of FOREX
- public debt 92.7% (2022)
- 29% interest rates(2024)
- high inflation of around 21% in 2025
what kind of economy is Ghana and likely policies used for development
more free market but in between two:
- floating ER
- microfinance
- promotes FDI
- privatisation
- trade
- buffer stock and gov spending
what kind of economy is vietnam and likely policies for development
more command but in between mixed and command:
- managed ER
- gov spending
- joint ventures
- protectionism
- promote FDI
- joining WTO
Key facts about Vietnam
- low labour costs (comparative advantage in low cost manufacturing)
- high FDI, such as “China plus one”
- building infrastructure, such as ports
- tourism to increase to 18% of GDP
- centrally planned economy until 1986 reforms but still not that free market
- business friendly policies to attract companies, e.g Samsung
- joined WTO and CPTPP
key facts about ghana
- buffer stock scheme for cocoa
- highest global growth in 2019
- found oil in 2007
- high level of corruption
- over 50% inflation in 2022, settled down to around 20% now
- bailed out by IMF ($3 billion)
- cocoa farmers producing chocolate
- national debt approaching 60% of GDP
impact of tourism in Vietnam
- nearly 10% of GDP in 2019, including indirect and induced impacts = over 20%
- nearly 10% of total employment
- third largest source of foreign currency after electronics/textiles
- TNCs like Marriott have expanded
- reduction of poverty rate
- risk: COVID - nearly 80% drop in international arrivals in 2020
