Vietnam's Growth Model and Germany's Poltical and Trade Reforms

Article Analysis
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Article 1 – The Special Sauce
Principal Theme
Vietnam exhibited fundamental growth in FY2020 regardless of the pandemic outbreak. The country outperformed neighbors by attracting more foreign companies for investments, strengthening employment, and other economic factors. In the past decade, foreign companies contributed 447% growth in Vietnam, higher than the domestic contribution. The lifestyle is expected to grow while the economic dependency on foreign firms is increasing rapidly nationwide (The Economist, 2021).
Strategic Issues
The primary strategic issue for Vietnam is the dependency on international firms to boost economic activities. Vietnam operates on communist policy while managing economic activities. However, a paradigm shift is observed from the mid-2000s, increasing international trade by 200%. Unfortunately, Vietnam focuses less on domestic contribution, while the COVID-19 outbreak disrupted participation from international companies due to lockdowns and other social distancing policies (The Economist, 2021).
The second strategic issue is the dependency of domestic firms on financial loans. Vingroup is one of the examples to understand the strategic challenge. Vingroup operates with different companies under its umbrella to make significant economic contributions as a domestic firm. However, Vingroup operates mainly on financial loans and expects tax waivers to remain profitable for the country (The Economist, 2021).
Implications
The primary implementation for the country should be the utilization of domestic resources to boost the economy. Vietnam has affordable labor, attracting international players to invest (The Economist, 2021). Vietnam should use the labor intensity to increase gross domestic product (GDP) for local companies and strengthen economic independence in the long run.
The secondary implementation should be the emergence of the service sector. Vietnam is gaining strength during the pandemic since international players are searching for affordable labor solutions (The Economist, 2021). In this context, Vietnam must diversify its focus towards the service sector and improve its lifestyle, which is necessary to sustain the economic viability with independence.
Personal Commentary
Vietnam is a progressive country with resource adequacy to compete locally and internationally. However, immense dependen...