Forty years on: Vietnam moving on right path

The end of the war paved the pathway for what international friends often refer to as an – economic miracle – evidenced by robust and rapid post-war growth, buttressed with an image of a dynamic, hospitable and peaceful nation.

"I love Vietnam" was the first sentence of Mr Alain Fontenas when sharing his thoughts about Vietnam. As an amateur French painter, he has a passion for creating artwork inspired by the Southeast Asian nation’s land and people.

Alain Fontenas and his journey for Vietnam discovery

His passion brought him to Vietnam for the first time in the 1990s when the country was still in the early years of the Doi Moi (Renewal) process. He has now travelled to Vietnam eight times, staying for over two months each and considers Vietnam his second home.

Each time he visits and it comes time to return to France, Fontenas said he feels overwhelmed with a strong sense of pride in the country on the right path for stronger development.

Alain's Gallery in the city of La Rochelle has become a famous destination for many French citizens. He revealed that Vietnam has served as a great source of stimulation for his artwork at the gallery.

Many others who come to Vietnam for the first time have also shared similar feelings to Fontenas.

Rahayu Saraswati, an Indonesian lawmaker who visited Vietnam for the 132nd Inter-Parliamentary Union (IPU132) Assembly, last March was very surprised at the vigorous growth of socio-economic development of Vietnam.

According to Ms Saraswati, Vietnam has increasingly demonstrated a tremendous potential for positive development and is quickly becoming a highly attractive destination for foreign investors.

"I think that Vietnam has performed miracles. Coming to Vietnam this time, I can clearly see the nation has made considerable economic progress and invested wisely in its future,” Saraswati shared.

“An open investment environment and an open door policy create a congenial investment climate free from cumbersome procedures and we expect our investment to double in the future."

Forty years after the war and nearly 30 years of pursuing the Doi Moi (Renewal) process, Vietnam have increasingly elevated its international profile to new heights. 

Commitments by foreign firms and investors to run long-term business in Vietnam are at historically high levels and have proved a perfect development path for a nation that was so deeply mired in war just a few short decades ago.

As a group doing business in Vietnam since the 1990s, Schneider Electric has more than 20 years of experience in the country, making a noteworthy contributions to the its development, prominently evidenced by the key national North-South 500kV line project underway since 1991.

CEO of Schneider Electric Vietnam Co., Ltd. Xavier Denoly appreciated the prosperous opportunities presented by the Vietnam market and said the nation should be applauded for its accomplishments.

“Vietnam –  an emerging economy with its large young population –  is an important factor behind the development and improvement of infrastructure. Schneider Electric has had superb opportunities in Vietnam when the group develops long-term strategies as well as supporting development in the country.

We operate within the framework of Vietnamese policies to stimulate investment in both the public and private sectors. We specifically focus on areas that can bring a lot of benefits to Vietnam,” Xavier Denoly said.

“With an improved investment environment and stable economic growth, Vietnam is fast becoming an ideal destination for many major multinational groups across the globe.”

According to foreign economic experts, Vietnam can be seen as a successful development model. Despite being affected by the global economic crisis, GDP growth rate in 2014 put Vietnam among one of the nations with the fastest growth rates in the world just behind China.

Sandeep Mahajan, the chief economist for World Bank (WB), recently said economic development has precipitated changes in all aspects of the daily lives of the Vietnamese people.

WB chief economist Sandeep Mahajan talking about Vietnam's positive economic development

Many Vietnamese are benefiting from the economic growth and the Southeast Asian received great praise for its poverty reduction efforts. At the beginning of the reform process, nearly 60% of Vietnam's population lived in poverty. However, today's poverty rate has fallen below 10%.

Regarding education, 97% of the people aged 15-24 are now literate. In terms of health care, the average life expectancy of Vietnamese people has increased from 65 to 75.

In the field of infrastructure, most people also have had access to electric networks compared to the very limited number of 25-30 years ago, Sandeep Mahajan stated.

Vietnam’s economic recovery over recent years has provided an important foundation for the country to place a firm confidence in the future growth targets.

This year is a special time when Vietnam is poised to complete negotiations on free trade agreements (FTAs) between Vietnam and the Customs Union of Russia-Belarus-Kazakhstan, the Trans-Pacific Economic Partnership Agreement (TPP) and its participation in the ASEAN Economic Community (AEC).

US Ambassador to Vietnam Ted Osius recently postulated that implementation of trade agreements in the future will significantly contribute to Vietnam’s GDP growth rate in the time to come.

Vietnam is one of the 12 countries actively participating in the TPP negotiations. This trade pact will open up numerous economic opportunities not only for the US but also all the countries participating in the negotiations, including Vietnam, Osius stressed.

Both the US and Vietnam consider the TPP a strategic agreement, bringing special economic benefits. Therefore, US and Vietnamese leaders wish the negotiations would be finalized this year, he noted.

The monumental economic achievements have helped elevated Vietnam's position in the international arena. During the past four decades, the country’s expanded external relations have gradually enhanced the image of a successful country in the process of innovation and development.