The Hindu Business Line : Vietnam’s attitudinal progress

Vietnam has made noticeable progress in the short time it has been liberated from the French and the American bombardment, which shattered the country. After a visit there, one cannot help but be impressed with the “attitudinal infrastructure,” where Vietnam seems far ahead of India.

This is perceptible in several spheres. The attitude of its citizens towards the state, with one another, the public systems, the government’s decision-making process and the will of the government to implement its decisions.

This soft, yet vital, infrastructure must be adding significantly to the return on assets and social and private capital, something India is missing out on. Vietnam’s strides cannot be dismissed as that of a small state such as Estonia, Latvia or Singapore for it has a significant population and density comparable to India.

Just a few illustrations.

First, Vietnam’s relations with its erstwhile tormentors. It appears that Vietnam as a nation and its citizens have chosen to forget the pains of the past and move ahead. The unwritten subtext seems to be “bemoaning the past brings no economic returns and will only further widen the gap between Vietnam and its neighbours (Taiwan, Korea and China) which have raced ahead. So let’s not lose further time.”

Vietnam has negotiated soft loans and guarantees for mobilising finances for its development initiatives from its erstwhile occupiers; this is an instance of how it has encashed on its past adversity.

Political system

Second is the political system which can be branded as soft communism — not repressive like China’s nor combatively debating like India’s.

A single party system in Vietnam which is however alive to the concerns of the provinces and people and a reasonably free press serves to bring forth issues for productive debates. Political debates are not used to serve myriad sectarian pulls, regional self-interests, caste equations and sometimes even personal egos.

Third, an illustration of the Government’s will to act. In the early- to mid-1990s Vietnam decided to afforest about 10 million hectares of land to serve various interests, including promoting agriculture, regional employment, increasing the forest cover and creating the resource base for industry. Ten years later the evidence is there for all to see.

Success in a project of this size (land-wise) covering several provinces and communes and impacting so many people, especially given the longevity in implementation, may be unique in public systems. It has created several employment and industrial opportunities and Vietnam today is ideally poised to be a major force in wood-based industries.

Customer friendly

Fourth, the country’s approach towards infrastructure building and public systems maintenance. The attitudes on the ground of the government’s arms or enterprises under its control are far more customer-friendly — be it airlines, busses, police, etc. There is as much speed, enthusiasm and positive orientation as in the best private enterprises.

The planning seems far sighted and is unlikely to run out of carrying capacity within a few months or years after commencement like in India. Of course, there are several areas where one can see backlogs and delays. The legal system is undefined and does not promise much by way of delivery of justice or its enforcement. It ranks low in the corruption index and transparency, and inflation has become a big problem of late. Traffic rules and discipline, like in India, seem to be a functioning anarchy. Only the temper levels are well within control and tolerance to being offended by the fellow rider is very high.

(The author is a CFO with a large paper company. His views are personal. blfeedback@thehindu.co.in)