Research Proposal

Student Name

Institute Name
Comparison South Korea v Vietnam

South Korea has shown unprecedented growth and economic penetration to be an advanced high-tech

market over the past four decades. The 1960s saw a correlation of GDP per individual in wealthier

African and Asian nations. In 2004, Korea entered the global economy's trillion-dollar group and is now

the 12th-largest economy in the world. Originally, this progress was made possible through a network of

close relationships between government and companies, including guided loan and import controls. At

the cost of consumer goods, the government supported purchases of raw material and innovation and

favored investments and savings over consuming. In the year 1997-98 of Asian financial crisis, the South

Korea's model of development revealed long-standing vulnerabilities, including high debt-to-equity

levels and significant short-term international lenders (Novokmet et al., 2018).

In 1998, GDP fell by 6.9 percent and was then restored by 9 percent in the year 1999-2000. Amid the

crisis, Korea has implemented various structural changes, particularly greater access to foreign direct

investment and imports. Between the year 2003 to 2007, development moderated to nearly 4

percent per year. The global financial crisis in the year 2008 struck Korea's export-oriented economy,

which rose steadily again in subsequent years to reach development of 6.3 percent in 2010. In the

year 2011 both governments ratified the US-South Korea Free Trade Agreement and came into force in

March of the year 2012. Economic growth in the United States, Asia, and the Eurozone has declined in

the year 2012 as a consequence of weak economic downs (Fischer & Yeritsyan, 2018).

The incoming administrative system must face the challenges of matching high export dependence on

emerging national-oriented sectors including services followed by the election of president of December

in the year 2012. The long-term problems of the economy of South Korean involve rapidly aging

demographics, inflexible workforce and high export reliance-including half of GDP (Schweickart, 2018).
Vietnam is a highly populous developing country which has been evolving from central economic

instabilities since the year 1986. Throughout recent years, the Vietnamese government has reaffirmed

its pledge to financial modernisation. In January 2007, Vietnam became a member of the World Trade

Organization, which encouraged more competitive and export-led manufacturing. Throughout the

2010's Trans-Pacific Partnership Trade Agreement, Vietnam has become an official negotiation member

(Laudenbach, Malmendier & Niessen-Ruenzi, 2019).

In the same time, the share of agricultural production started to decrease from around 25 percent  in the

year 2000 to less around 22 percent in the year 2012, while the portion of the industry went up from 36

percent to almost 41 percent. About 40 percent of GDP is owned by State-owned companies. Poverty

has substantially decreased and Vietnam is creating jobs to address the challenges of an annual

workforce of over 1 million. Vietnam's export-oriented industry suffered as a result of the global

financial crisis through GDP rising 5 percent in 2012, however the slow growth rate since the year 1999.

During 2012, though, imports increased by across 18 percent over the year, putting the trade surplus

back to balance through several enforcement actions (Glassman, 2019).

From 2008 to 2011, the controlled currency of Vietnam–the dong–was devalued by more than 20

percent, which remained unchanged in 2012. FDI balances declined 4.5 percent in 2012 to 10.5 trillion

dollars. Through new development aid through 2013, foreign donors promised $6.5 billion.. Hanoi has

drifted in recent years between encouraging prosperity and promoting macroeconomic stability. In the

month of February in the year 2011, by increasing monetary and fiscal regulation, the government

moved away from policies aimed at achieving a fast rate of economic growth which had fueled inflation

and aimed at stabilizing the economy (Wood, 2019).

Although Vietnam revealed in early 2012 a broad economic reorganization "three-pillar" plan proposing

a reorganization of public investment, state-owned companies, and banking, little progress was made by
the beginning of 2013. The economy remains challenged by a subcapitalized banking sector in Vietnam.

Lack of loans heavily affects banks and firms. The official bad debt rate in September 2012 rose to 8.8%,

although some independent analysts claim it could be over 15% (Glassman, 2019).

Comparison Vietnam and South Korea in terms of Human

Development

HDI (The Human Development Indicator) is an index assessing important human development aspects.

The three main factors are: a stable and balanced life calculated according to life expectancy.

Connection to schooling, determined by planned school years for people of school age and average

school years for youth. And a reasonable living condition determined by the per capita Gross National

Income linked to the country's current price. South Korea was one of the most impoverished countries

in the world after the Korean War and had a per capita gain of just 64 dollar (Glassman, 2019).

In the 1960s, the economy was stuck behind the DRC –polls now being conducted under the rule of

terrorism. Economically, it lagged behind. The circumstances of the world have varied significantly since

then. The OECD Development Assistance Committee (DAC), also belongs to South Korea as part of the

rich man party. The DRC has moved from sovereignty to the edge of the Human Development Index in

2011 and out of 187 states. Nevertheless, South Korea, mainly from the US and then Japan, benefited

from large foreign funding investments (Wood, 2019).

The report from KoFID, a network of civic societies in South Korea and ReDI, a Think Tank in South

Korea, states that among 1946 and 1978 the United States gave South Korea around 60 billion dollar in

grants and loans. The total US support for the whole of the African continent during the same period

was 68.9 billion dollars. Korea, which during the Cold War was viewed by the US as a major ally, utilized
assistance unquestionably well. Seoul didn't fear challenging the United States if it differed from the

plan of growth.

Throughout the past 27 years, Vietnam's HDI has steadily increased. In the year 2017, it ranked 116th

from under 189 (as in 2016); it was on the edge (amongst the fourth largest) of the medium category of

human growth. HDI level 0.694 in Vietnam is just 0.006 points underneath the High Human

Development Group (0.700) limit (Glassman, 2019).

The HDI was a small average of 0.26 percent in the era of 1980 to 1990, but improved to 2.00 percent in

the year from 1990 and 2000, though then reduced to 1.35 percent in the year from 2000 to 2008, and

to 0.94 percent a year since 2008. The rate of improvement of Vietnam's HDI between the years 1990

and 2017 was 1.41% annualized, higher than the average human development level of 1.24% and the

average of 1.30% for East Asia Pacific. In the last decade Vietnam's slow progress over HDI has brought

back its previous fast human development success in the relation of China and the Philippines to many

other nations. In 1990 the HDI price of Vietnam decreased by 8.1 percent to the median East Asia-Pacific

region (Laudenbach, Malmendier & Niessen-Ruenzi, 2019).

In 2008, the differentiator slightly expanded to 4.7 percent but again expanded to 5.3 percent  by 2017.

Although this is partly due to China having increased its exceptional HDI value from 0.43 (under

Vietnam) in 1980 to 0.752 (under the RK and Malaysia) by 2017. It also benefits from other countries '

improved performance relative to others. South Korea was not ready to play the U.S. second fiddle and

demanded that it follow its own path in spite of the current debate on "ownership." The assistance was

related to the preparation and budgeting of South Korea, a strategy that was laid down in the 2005 Paris

Declaration on Assistance Capacity and planned to be reaffirmed by Busan (Schweickart, 2018).

Under the strongman Park Chung-Ee, South Korea concentrated to build big economic champions

despite advice from America to medium and small-sized enterprises. The strategy provided the basis for
popular South Korean companies on the world trade, such as Samsung and LG, even if the close

relationship between corporations and political elites was a cost for political corruption. The KoFID and

ReDI claim that corporate concenter, while promoting increased economic disparity, has contributed to

chaebols being monopolized. Because of its defeat, unlike Mobutu in DRC, the South Korean

government has not waste its assistance (Fischer & Yeritsyan, 2018).

Vietnam has enabled the IMF to circumvent its policy in contradictions about the rate of change in the

financial industry and banking system audits. In 1990, the educational value of the Educational Index of

Vietnam fell among the lowest, well below the levels of India and Lao PDR during its initial

transformation from central planning. Even though Vietnam has since stabilized again, it has never

succeeded in closing the educational index value difference with comparable nations, including Thailand,

Malaysia, Philippines and China (Novokmet et al., 2018).

In general Vietnam outperforms countries with comparator data for the health component of HDI,

including countries with significantly higher national incomes per capita, which are based on the life

expectancy data. The life expectancy in Vietnam at birth (76.5) beats the national human development

community median (76.0). In Asia-Pacific, Vietnam is the only nation which outperforms the Republic of

Korea, with an increase in life expectancy from Vietnam after 1990. Whilst the potential for further

progress can seem small (as the life expectancy of Vietnam is fairly high), the experience of RoK has

shown that improved performance in key contributing factors, such as child mortality and poor safety

accidents, may lead to significant advantages for Vietnam (Glassman, 2019).

Fischer, D. H., & Yeritsyan, H. (2018). A Common Misunderstanding about Capitalism and Communism

Through the Eyes of Innovation. Economic Thought, 7(2), 1-14.

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