Vietnam's Economic Approach: Echoing the 'Asian Tigers'

Vietnam's Economic Approach: Echoing the 'Asian Tigers'

Vietnam is emulating the successful "developmental state" governance model reminiscent of the prosperous "Asian tigers" — Taiwan, South Korea, Hong Kong, and Singapore. This approach, characterized by five distinct features, is propelling Vietnam toward rapid economic growth and structural transformation.

1. Determined Elite

At the core of Vietnam’s economic strategy is its determined elite. Like the leaderships of the Asian tigers in their developmental phases, Vietnam’s leaders exhibit a strong commitment to economic modernization and industrialization. The country’s leadership has consistently articulated clear visions for long-term growth and is focused on implementing policies that drive economic progress.

2. Powerful, Competent Economic Bureaucracy

A hallmark of the developmental state model is a powerful and competent economic bureaucracy, and Vietnam is no exception. The country's economic agencies are staffed with skilled technocrats dedicated to efficient policy implementation. This bureaucracy plays a vital role in designing and executing economic strategies, ensuring policies are well-targeted and effectively managed.

3. Effective Management of Private Sector Interests

Vietnam’s government excels in managing private sector interests, creating a conducive environment for business and investment. By maintaining a strategic partnership with private enterprises, the state not only facilitates entrepreneurial activities but also guides them in line with national development goals. This symbiosis helps in achieving high economic growth while ensuring private sector dynamism.

4. Weak Civil Society

While this model enables economic advances, it often coincides with a weaker civil society. In Vietnam, the scope of civil society organizations is limited, with the state exerting significant control over social, political, and economic discourse. This concentration of power can streamline decision-making processes but also raises concerns about civic freedoms and democratic governance.

5. Authoritarian State

An authoritarian state underpins Vietnam’s developmental approach, allowing for decisive actions and policy longevity. Authority is central to maintaining the cohesive vision necessary for large-scale economic interventions. However, this aspect also brings forth challenges related to human rights and transparency, which are critical areas of concern for international observers.

Conclusion

Vietnam's adoption of the developmental state model mirrors the successful pathways of the Asian tigers, contributing to its impressive economic trajectory. However, this model’s associated social and political dimensions necessitate a balanced consideration of economic success and broader societal impacts. As Vietnam continues to evolve, it remains to be seen how it navigates these complexities while striving for sustained economic prosperity.