Southeast Asia's equivalence to Switzerland: Exploring how Vietnam's essence sparks a fresh economic era
Vietnam: The Rising Tiger of Southeast Asia
Take a gander at HCM City, and you'll be struck by its towering skyscrapers, especially the illuminated Landmark 81, the second-tallest building in Southeast Asia. This city, ever-dynamically evolving, leaves a lasting impression. Yet many people remain unfamiliar with modern-day Vietnam, clinging to 60s and 70s war-era images when, in reality, Vietnam has come a long way since the Đổi Mới (Renewal) reforms initiated in 1986.
Vietnam, home to over 100 million people, has boomed economically. Its GDP, a mere $27 billion in 1986, is projected to reach an astounding $500 billion in 2025. Yet, numbers alone are insignificant. The real treasure lies in the people, with a median age of 33, underscoring the dynamism and potential of this society. It's Vietnam's young generation, fired with entrepreneurial spirit, that truly ignites the spark. Stroll through Vietnam's streets, and you'll spot small shops, eateries, and thriving businesses on every corner. Family entrepreneurship is the norm rather than the exception.
Introducing private ownership under the Đổi Mới economic reforms set the stage for Vietnam's prosperity over the past four decades. The party and the government tactfully observed comparable economic developments worldwide and, though initially cautious, eventually implemented change with conviction. This careful approach is reflected in both the gradual, and at times hesitant, privatization and the steady push for digitalization at all levels.
Vietnam's digital landscape is vibrant, packed with a myriad of digital technologies, including AI solutions, blockchain applications, data centres, edge networks, streaming platforms, and a thriving e-sports culture. Vietnam has been producing electric vehicles for years, a fact briefly mentioned alongside its burgeoning technology scene.
Dr Philipp Rösler. - Courtesy photo
Innovation has become the heartbeat of Vietnam, far surpassing mere imitation of American and European business models. Homegrown concepts are flourishing in digital technologies, manufacturing, and more. Switzerland, for instance, benefits from cooperative businesses with companies like On Shoes and software engineers creating cutting-edge payment apps. Indeed, the Vietnamese are often referred to as the Swiss of Southeast Asia—hard-working, diligent, disciplined, and performance-oriented.
However, even in this dynamic region, challenges exist. External trade tensions threaten the economy, with tariffs on Vietnamese exports creating uncertainties. Inflation remains relatively stable, projection to stay below the government's target range of 4.5% to 5%. Despite certain hurdles, the ASEAN community's advantage lies in the lack of burdensome bureaucracy, which is yet to reach European proportions. Persistent corruption remains an obstacle, hindering economic growth.
Vietnam's story serves as a powerful reminder that strong and advanced economies can still crumble if the core values wane. But there's hope—in Vietnam, we can observe a beacon of resilience and, importantly, learn from it. The virtues that drove Germany's growth post-WWII may yet bring prosperity to countless nations. Embrace the spirit of entrepreneurship, diligence, and performance, and growth and success are within reach.
Delegates experience digital transformation solutions at a national forum supporting businesses in digital transformation and e-commerce development. - VNA/VNS Photo
- The Vietnamese government, drawing from worldwide economic developments, has carefully implemented change, promoting privatization and digitalization within the country.
- Vietnam's digital landscape thrives with various technological innovations, including AI solutions, blockchain applications, and edge networks.
- The Vietnamese people, with a median age of 33, showcase dynamism and potential, while family entrepreneurship is prevalent in small businesses, shops, and eateries.
- In the cultural sphere, Vietnam's society is often compared to Switzerland, noted for its hard-working, diligent, disciplined, and performance-oriented nature.
- Vietnam's economy has experienced significant growth, with its GDP projected to reach $500 billion in 2025, but external trade tensions pose uncertainties and threaten economic stability.
- Education plays a crucial role in nurturing a new generation of entrepreneurs, who can contribute to Vietnam's ongoing economic development and technology scene.
- Vietnam's technology industry is not limited to digital technologies alone, as it also produces electric vehicles, setting an example for sustainable and eco-friendly innovation.
