Vietnam, the rising star (3)

Vietnam’s national flag features a huge, bright yellow star starkly emblazoned against a blazing blood-red backdrop, giving the impression of a country that has undergone long years of hardship under the yoke of foreign invaders but now stands proudly as a strong and free nation. I think the flag is so appropriate for what Vietnam is today.

Forgive me if I keep gushing about my admiration for Vietnam, but I can’t help it. Our recent trip to this nation had me completely flabbergasted by the remarkable transformation it has undergone from a country ravaged by decades of war, in a region long considered by the West primarily a source of raw materials and cheap labor to feed the insatiable consumerism of Europe and America, into a country whose remarkable development and achievements as an emerging economic powerhouse are nothing short of phenomenal.

And sadly, neither can I help comparing Vietnam’s rising star and economic surge with our own country’s apparent, alarming descent and deep dive into the dreaded netherworld of stagnation, hyperinflation or, worse, stagflation.

Doesn’t it make you wonder why?

Could it be that an iron-grip, socio-autocratic form of government where “if you don’t toe the party line, you simply no longer exist” or “shape up or shut up” is more appropriate for developing countries than a freewheeling “anything goes” or the comfortably lazy “okay lang” attitude of a democratic capitalist society where the slick-talking, bootlicking influencers closest to the powers that be are the ones who thrive?

Could it be that our former Spanish colonial masters instilled in us a laid-back culture, compared with the Vietnamese “must survive at all costs” desperation brought about by decades of wartime savagery? Could it be our ungovernable, dispersed population, speaking different dialects and spread over thousands of islands, that makes governance impossible compared with geographically compact Vietnam?

But that’s for another story that an economist can better explain. For now, let me share with you a glimpse of what we saw and experienced that could give us a clue to Vietnam’s rapid progress.

From Danang’s wide, clean roads, modern infrastructure and pristine beaches that create an atmosphere that feels simultaneously urban and relaxing, we motored to Hoi An, where for several days we treated ourselves to a luxurious but reasonably priced stay at Vinpearl Resort and Golf, occupying a spacious villa with its own swimming pool fronting the beach.

The resort was another pleasant surprise that I believe could not have been built without a close, symbiotic government-private sector relationship. The gargantuan project surely must have received some form of government support, either through soft financing or tax breaks.

Obviously, Vietnam’s development strategy considers the tourism industry high up in the value chain by offering facilities comparable to those of the best destinations in Asia while remaining remarkably affordable.

That coordinated value-for-money proposition was evident throughout our stay. Take, for instance, a simple tailoring shop in Hoi An that specializes in custom-made suits ready within hours. I was prodded into visiting it by the owner of the eatery where we had lunch. The eatery owner must have had a sales commission arrangement. But that’s cross-selling in any language, and it obviously works because I ended up ordering a suit.

That visit to the tailoring shop, however, was not just about craftsmanship and affordability but, more significantly, showcased Vietnam’s successful garment and textile industry, which has evolved from traditional, low-cost weaving and production into a leading global manufacturing sector producing high-quality fabrics, advanced designs and eco-friendly products.

In 2024, the sector generated about $4.4 billion in export value and employed some 4.5 million workers, according to Mirae Asset Securities.

Among our most enjoyable experiences was the famous coconut boat ride in Cam Thanh Village. Skilled boatmen navigated round bamboo basket boats along narrow waterways ensconced among coconut trees while entertaining us with spinning maneuvers and lively renditions of Pinoy ditties.

Equally memorable was VinWonders, a gigantic, world-class leisure destination that combines amusement rides, family attractions, varied gastronomic experiences and entertainment facilities. It’s like Disneyland transported to a fantasy mountaintop theme park reachable only via a 20-minute cable car ride.

Again, I am certain such a massive tourism magnet must have been supported by the government. According to B&C Company, Vietnam’s tourism industry generated a mind-boggling $33 billion in revenue in 2024 from 127.5 million domestic and foreign tourists, contributing about 8 percent of the country’s GDP and generating about 6.3 million jobs.

With such stirring numbers and rapid development, Vietnam certainly is on its way to becoming a brilliant, rising star in the region.

Until next week… OBF!

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