Vietnam, a key opportunity for the West
When you walk off the airplane in Hanoi at night, you notice that the airport is new, and is bustling with travelers from different parts of the world. The Westerners in line are mostly tourists, coming from Australia, UK, US, and parts of Europe. They are younger by Western standards, some have backpacks and usually travel in groups of 2 or 4. They look eagerly at the signs trying to figure out what customs line to get in. The Asian travelers are a mix of Chinese, Korean, and Japanese, with some of them here for travel, but also a large number of them here for business. They are dressed in black pants and short sleeve shirts adapting to the warmer, humid climate they just entered. The airport is upbeat and the people wait in line where dozens of Vietnamese drivers wait on the other side of the baggage claim to take the new arrivals to their destinations.
Over the past 15 years it’s clear to even outsiders that Vietnam has taken advantage of its growth and reinvested money for infrastructure, new industries, improved technology, and new housing. Even when you leave the airport just a few minutes down the road you cross the beautiful and colorful Nhat Tan bridge, a project funded by a Japan International Cooperation Agency (ODA) loan. Japan is 2nd largest investor in Vietnam with Korea being the 1st. The largest western investment country is the Netherlands at #7 with the US coming in at #9.
When you go to Ho Chi Minh City (aka Saigon), the vibe is a bit more modern, with more westerners on the streets (especially Australians), and a tad bit less chaotic. There are the same growing pains in HCM as in Hanoi, but you see more familiar names to westerners such as HSBC, Nestle, P&G, L’Oreal, etc. There is a strong competitiveness that exists between the two cities (clearly a carryover from decades of fighting) that sometimes goes beyond friendly. It’s a country that takes pride in itself but is still openly aware of its challenges in addition to it’s opportunities.
The average Vietnamese person is 29 years old, strikingly low compared that to the United States which is 38, or nearby Japan at 45. And the country ranks 7th in the world with the number of Facebook users (around 64 million), and it’s second largest import is phones (many of which are Apple iPhones). In a recent Pew Research Poll this June, the Vietnamese people view the U.S. in a very positive light, with a record 84% approval, the highest of the 37 countries Pew has tracked over the past decade. They crave English teachers for their schools with openings in the hundreds across the country. This is a country that is open to trade, technology and entertainment, especially from the West.
In contrast, Vietnam has growing concerns about encroachment on their land, environment, and trade from neighboring China. The countries have a troubled history (for centuries) that many westerners are unaware. The Vietnamese want partners (unlike their neighbor to the north), are increasingly more open, but still are transitioning at an unorthodox pace where western countries and companies can be of great benefit to them. They have religious freedom, open access to western technology and imports, and an eagerness to improve their position in the world. Yes, the Vietnamese still have limitations and problems, and can act like adolescent children who make silly mistakes that should be avoided. But as the West tries to maintain growth and allies in an ever changing world, Vietnam is one of the best opportunities to build relationships and provide positive influence based upon our collective experience. Not so long ago, the West counted on Singapore and Hong Kong to be the gateways to Asia, but some of that influence has waned in 2017, especially for Hong Kong now that it is under the umbrella of mainland China.
The opportunity is now to strengthen ties and communications with Vietnam as commerce and tourism grows. This is a country who is openly interested in beginning a new dialogue on a global stage that is mutually beneficial to all.
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Sources: The Observatory of Economic Complexity (http://atlas.media.mit.edu/en/), The Pew Research Center (June 26, 2017), “Vietnam climbs to seventh worldwide for number of Facebook users: report”, VN Express International (July 17, 2017)
