Vietnam should learn from China growth
- Hanoi’s economic miracle depends heavily on its resolve to root out corruption and maintain smooth and orderly progress
Vietnam’s economy grew by 8.2 per cent last year, despite pandemic headwinds that put the brakes on other economies. It is the fastest pace of expansion for 25 years.
Meanwhile, the ruling party’s focus has widened from safeguarding independence and security to building a modern socialist power, as affirmed at the most recent party congress in 2021. Clean government is key to success.
The main driver of growth is foreign trade and investment, the latter having been boosted by Western decoupling from China. Public trust and business confidence are paramount to both, and to the party’s political legitimacy.
Hence the impetus behind a sweeping drive against official corruption launched by Vietnamese Communist Party chief Nguyen Phu Trong, who has taken a leaf from President Xi Jinping’s political playbook of cracking down on crooked officials, however senior they may be.
In the most spectacular downfall, Nguyen Xuan Phuc resigned as president last week over the “violations and shortcomings” of senior ministers.
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Vietnamese president Nguyen Xuan Phuc resigns amid major anti-corruption purge
The flood of foreign capital has been good for the economy, but has also led to serious corruption.
Dozens of officials, including two deputy prime ministers, were earlier removed from their positions over involvement in price-fixing and kickbacks for Covid-19 test kits, and in bribes for seats on charter flights returning Vietnamese citizens during the pandemic.
Not only is there sweeping change at the top in Hanoi but also Vietnam has adjusted its policy towards China, reflected in a letter from Xi to Trong to mark the Lunar New Year in which he saw a shared future with Vietnam and pledged priority for the fellow communist state when it came to regional diplomacy.
The latest changes in Vietnam are in a sense inevitable if economic development with socialist characteristics is to be kept on track. In that respect it can learn from China about the pitfalls of rapid development.
Ultimately, Vietnam’s economic miracle depends heavily on resolve to root out corruption and maintain smooth and orderly growth. If it can map out an effective strategy to address its own situation it may have a bright future.
