ACCT 2126 Managerial Advisory Finance
Semester 2
Title of Assignment Report on Economic Concepts and Applications
Name and Student ID
Lê Vân Khánh - 4117897
Signature
Location Saigon South
VNMRI BUSM2565 1363VNMRI BUSM2565 1363 LEC01VNMRI
Class Group
BUSM2565 1363 TUT01
Lecturer Phong
Word Count
(Main content without list of
references, cover page, etc.)
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the next page.
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Question 1:
Nations around the world, especially developing countries, face critical challenges in balancing short-
term economic development and long-term environmental sustainability. Economic development can lift
millions of people out of poverty, improve their living standards and provide them with access to basic
services. It can also reduce unemployment by creating jobs through industrialization. However, this
development could affect the sustainability of the environment in the long-term. This includes increasing
greenhouse gas emissions, deforestation and the depletion of natural resources. To reach sustainable
growth, it is necessary to consider financially in the investment of renewable energy as well as policies
to balance the necessity for growth with the accountability to decline emissions. Vietnam has provided
numerous policies for the sustainable growth of the country. Two of them are National Green Growth
Strategy (NGGS) and National Strategy on Climate Change (NSCC). The National Green Growth
Strategy, which was outlined in 2012, aims to make green growth a high priority. According to the
Institute of Energy, Ministry of Industry and Trade, the country has reached 5.65% of saving energy in
the period of 2011 – 2015, particularly in the total saving of nearly 11.3 million tons of oil. In the
National Strategy on Climate Change, a 43.5 percent emissions reduction target by 2030 has been set,
emission target for specific sectors for the years 2030 and 2050. However, this goal is unlikely to launch
Vietnam on its own to net-zero emissions by 2050 because the nation still faces structural challenges
such as sea level rise affects urban areas and most of its economic is based on fossil-fuel power.
Question 2:
Vietnam has absolute advantage in textiles and garments. According to Statista, the total export value of
textiles and garments in 2023 reached 40.3 billion US dollars. However, over the last five years, this
value has gone through uneven growth. Image 1 below indicates that both 2019 and 2021 have export
values of 39 billion US dollars. Noticeably, in the year 2022, the export value is the highest among 5
years with 44.4 billion US dollars, while in the year of 2020 it is the lowest among 5 years with 35
billion US dollars because of the impact of the COVID-19 pandemic.
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Image 1 - Total export value of textile and garments in Vietnam from 2014 to 2023 (in billion U.S. dollars)
(Statista 2024)
Vietnam also has the comparative advantage in mobile phones and spare parts. Image 2 below shows
that the export values of 2019 and 2020 are the lowest in the 5 years, 51.97 and 51.18 billion US dollars,
respectively. 2021 and 2022 have the highest export value in the 5 years from 2019 to 2023 with 57.53
and 57.99 billion US dollars respectively. Moreover, there is a decline in the value of mobile phones
exporting from 57.99 billion US dollars in 2022 to 52.38 billion US dollars in 2023.
Image 2 – Export value of mobile phones and spare parts in Vietnam from 2016 to 2023 (in billion U.S. dollars)
(Statista 2024)
Despite many fluctuations, the export value of both products remains high, and both are the main export
items of Vietnam. Vietnam Briefing points out that the country being able to have high value in export is
due to low-cost manufacturing with competitive labor cost compared to neighboring country like China
helps Vietnam becomes a cost-effective alternative to nearby countries. Vietnam also has a large, well-
educated labor force, contributed for the attraction of investment from foreign countries.
United State has absolute advantage in the semiconductor industry. Image 3 indicates the market
revenue of semiconductors in an 11-year period includes the forecast for the future. From 2019 to 2023,
the highest market revenue occurs in 2022 with 75.6 billion US dollars. The lowest revenue is 51.12
billion US dollars in 2019. Noticeably, there is a rise in 2020 and 2021 compared to 2019 despite the
pandemic with 51.12 billion US dollars and 69.1 billion US dollars respectively. However, there is a
decrease in the revenue of the year 2023 compared to 2022, from 75.6 billion US dollars to 67.57 billion
US dollars.
United State has comparative advantage in the petroleum industry. Image 4 shows that from 2019 to
2021 the number of barrels per day remain the same at about 8 million barrels per day. There is a huge
shift between the year 2021 and 2022 from 8 million barrels per day to nearly 10 million barrels per day.
The year 2023 sees the highest barrels per day among the 5-year period of 2019-2023 with slightly
higher than 10 million barrels per day.
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Prior to the absolute advantage and comparative advantage of the United States, the rich natural
resources are the main factors for the large petroleum industry. Moreover, the dominant of technology is
also the reason for the advantage of the semiconductor industry.
Image 3 – Semiconductor market revenue in the United States from 2018 to 2029, by segment (in billion U.S.
dollars) (Statista 2024)
Image 4 – Total petroleum exports from the United States in selected years from 1950 to 2023 (in 1000 barrels
per day) (Statista 2024)
Question 3:
Nutifood Nutrition Food Joint Stock Company is a prominent Vietnamese company known for its
nutritional products, including milk powder and nutritional supplements. There are two remarkable events
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within the last five years that have significantly affected the market demand and supply for the main
product produced by Nutifood.
Factor 1: Trade Agreements and Tariff Reductions
Vietnam has signed and implemented many new generation free trade agreements (FTAs), such as
CPTPP, EVFTA and UKVFTA. The Ministry of Industry and Trade stated in a report that free trade
agreements bring positive impacts on Vietnam's export, import and investment attraction. According to
Vietnam Briefing, those trade agreements will allow Vietnam to take advantage of the reduced tariffs and
opened new markets for Vietnamese products, including some Nutifood products. Nutifood products have
been exported to several countries in the world such as the US, Japan, South Korea and European
countries.
Demand Increase: Access to new markets increases the demand for Nutifood products as it becomes more
affordable and accessible to a broader consumer base.
Demand Curve Shift: The demand curve shifts to the right (D1 to D2).
Supply Increase: The reduction in tariffs lowers the cost of exporting milk powder, making it more
competitive in international markets. This encourages Nutifood to increase production to meet the
anticipated rise in demand from new markets.
Supply Curve Shift: The supply curve shifts to the right (S1 to S2).
Factor 2: Rising Health Consciousness and Changing Consumer Preferences
According to the 2020 report from Nielsen Vietnam, while health had always been the top concern in
Vietnam, 49% of Vietnamese consumers put health as their top concern in the first quarter of 2020, up
4% compared to the last quarter of 2019. Nutifood products is known for its nutritional benefit, using
technology from Sweden to produce their product.
Demand Increase: As more consumers prioritize health and nutrition, the demand for Nutifood's milk
powder, known for its nutritional benefits, rises.
Demand Curve Shift: The demand curve shifts to the right (D1 to D2).
Supply Response: Nutifood may increase its production to meet the higher demand, but the supply curve
might not shift as dramatically if production capacity is a constraint.
Supply Curve: The supply curve remains relatively stable (S1).
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Reference
The Economist (1 July 2023) ‘Hard truths about green growth: How misfiring environmentalism risks
harming the world’s poor’, The Economist, accessed 30 July 2024.
https://www.economist.com/leaders/2023/06/29/how-misfiring-environmentalism-risks-harming-the-
worlds-poor
McKinsey Sustainability (14 October 2022) ‘Charting a path for Vietnam to achieve its net-zero goals’,
McKinsey Sustainability, accessed 30 July 2024.
https://www.mckinsey.com/capabilities/sustainability/our-insights/charting-a-path-for-vietnam-to-
achieve-its-net-zero-goals#/
Trinh Nguyen (October 19, 2023) ‘Vietnam’s Electronics Industry: A Guide to Emerging Opportunities’,
Vietnam Briefing, accessed 30 July 2024. https://www.vietnam-briefing.com/news/vietnams-electronics-
industry-guide-emerging-opportunties.html/
Statista (2024) Export value of mobile phones and spare parts in Vietnam from 2016 to 2023 (in billion
U.S. dollars), accessed 30 July 2024, Statista database.
Statista (2024) Total export value of textiles and garments in Vietnam from 2014 to 2023 (in billion U.S.
dollars), accessed 30 July 2024, Statista database.
Statista (2024) Semiconductor market revenue in the United States from 2018 to 2029, by segment (in
billion U.S. dollars), accessed 30 July 2024, Statista database.
Statista (2024) Total petroleum exports from the United States in selected years from 1950 to 2023 (in
1,000 barrels per day), accessed 30 July 2024, Statista database.
OCE (The Observatory of Economic Complexity) (2022) United State, OCE website, accessed 1 August
2024. https://oec.world/en/profile/country/usa?
tradeScaleSelector1=tradeScale1&deltaTimeSelector1=deltaTime5
OCE (The Observatory of Economic Complexity) (2022) Vietnam, OCE website, accessed 1 August
2024. https://oec.world/en/profile/country/vnm\
Nutifood Nutrition Food Joint Stock Company (2024) ‘Nutifood products are present globally and
keep conquering consumers all over the world’, Nutifood website, accessed 1 August 2024.
https://nutifood.com.vn/en/export
Nutifood Nutrition Food Joint Stock Company (2024), Nutifood website, accessed 1 August 2024.
https://nutifood.com.vn/en/nutrition-house
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Cece Nguyen (4 January 2022) ‘Why Manufacturing is Driving Vietnam’s Growth’, Vietnam Briefing,
accessed 30 July 2024. https://www.vietnam-briefing.com/news/why-manufacturing-is-driving-vietnams-
growth.html/
Vu HT and Pham LC (February 2016) ‘A dynamic approach to assess international competitiveness of
Vietnam's garment and textile industry’, Springer Plus, 5(1), 1-13, doi:10.1186/s40064-
Dinh NA and Gang Chen G (2019) Green growth in Vietnam: policies and challenges, E3S Conferences
website, accessed 30 July 2024.
https://www.e3s-conferences.org/articles/e3sconf/pdf/2020/24/e3sconf_tpacee2020_11010.pdf
Nhat Minh (5 July 2020) ‘Health remains Vietnamese consumers' top concern: Nielsen’, Hanoitimes.
https://hanoitimes.vn/health-remains-vietnamese-consumers-top-concern-nielsen-313047.html
