Ho Chi Minh City, renamed in 1976 after the country’s reunification, is Vietnam’s economic hub and largest city. It is named after the great Vietnamese leader whose indomitable courage inspired a people’s army to defeat the French and later the Americans. It has been transformed from a centrally planned to a market-oriented economy.

It is not difficult to understand how this came to pass, considering that, indeed, Vietnam exhibits all the key factors that attract foreign investment: a stable political environment, competitive labor costs vis-à-vis China and Thailand, strategic location near major shipping routes and proximity to key markets, and free trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTFP) and the European Union-Vietnam Free Trade Agreement (EVFTA.)

These have provided fertile grounds for hefty foreign direct investment (FDI) inflows , especially in manufacturing, real estate and high-tech industries. Japan’s automotive makers and high-tech industries have made Vietnam their favorite manufacturing base.

In the recent series of tariff escalations initiated by US President Donald Trump, a move that disrupted major economies in ASEAN, Vietnam’s vaunted Bamboo Diplomacy succeeded in securing agreement on reduced tariffs of about 25 percent from a high of 46 percent. This indicates Vietnam’s ability to flexibly adapt itself to turbulence and volatility in an ever-uncertain global milieu.

The Vietnam that I rediscovered earlier this week is a far cry from when I first visited the country more than three decades ago. It was in late 1992 when, on invitation of the Vietnamese education ministry, then fellow Professor (and later Education Secretary) Edilberto ‘DJ’ de Jesus, and this writer were sent by the Asian Institute of Management to explore possible cooperation in updating the country’s business education program.

Đổi Mới, or renovation, was the watchword in Vietnam in the early 1990s as the country transitioned from a centrally planned economy to a “socialist-oriented market economy," a concept popularized during the Deng Xiao Ping era in the People’s Republic of China. According to historical accounts: “Following the 1986 launch of these reforms, the early 1990s saw critical, deeper changes aimed at stabilizing the economy, reducing poverty, and normalizing foreign relations.”

Key aspects of the early 1990s reforms included: significant growth in the private sector marked by domination of retail trade; agricultural revitalization that saw the country’s emergence as a rice exporter; fiscal-policy changes that facilitated tax deductions to incentivize domestic and foreign investment; and professionalization of state-owned enterprises.

As it opted out of diplomatic isolation following its withdrawal from Cambodia, Vietnam also normalized its relations with China, making this strategic move the springboard for joining ASEAN in 1995. This new tack also ushered in the lifting of the US embargo and the normalization of relations between the two countries.

The foregoing reforms enabled Vietnam to significantly reduce the poverty rate from nearly 60 percent to just over 20 percent by 2010. Gross Domestic Product per capita rose from approximately $130 in 1990 to approximately $402 by 2000. Reduction of social evils like drug abuse and prostitution was another beneficial offshoot.

Moving fast forward to the 2020’s, Vietnam’s growth momentum continued on an upward trajectory. By end-2024, Vietnam showed the best post-pandemic tourism rebound in Southeast Asia as it welcomed 17.6 million international visitors, a recovery rate of 98 percent compared to 2019, the period preceding the Covid-19 pandemic.

This demonstrates the country’s agility in adapting to catastrophic challenges. Indeed, the iron discipline combined with bamboo-like flexibility in strategy and tactics developed under the influence of Ho Chi Minh has enabled Vietnam’s remarkable resiliency and flexibility amid continuing global turmoil.

Delving more deeply into Vietnam’s post-Covid rebound brings on a realization of what determination and focus on the right buttons to push could achieve in the face of daunting odds.

Here are more snapshots from Vietnam’s recent key moves in tourism, one of its principal growth drivers.

It has instituted a streamlined 90-day e-visa for all nationalities, expanded visa-free travel for over 24 countries, and improved air connectivity. The country is heavily investing in luxury infrastructure, promoting diverse products like MICE, which stands for Meetings, Incentives, Conferences and Events; wedding tourism, and digitizing tourism to attract high-spending, long-stay international visitors.

It has also expanded its infrastructure of four- and five-star hotels; increased direct, long-haul, and regional flights; highlighting local heritage and Michelin-starred culinary experiences; developing sustainable, eco-friendly, and health-focused travel experiences; and promoting tourism through digital platforms. Major cities are also actively promoting unique events, such as Ho Chi Minh City’s waterway tourism, Quang Ninh’s festivals, and Hanoi’s cultural events.

Clearly, the above playbook is not too different from what the Philippines has been doing, and continues to pursue. Hopefully, these moves will generate substantial traction and momentum, just like in the Vietnamese experience.

And yes, Filipinos excel in Vietnam, too. A significant portion of the roughly 7,000-plus registered Filipinos work as English teachers, nurses, doctors, and executives in manufacturing and service companies. We were met at our hotel, Sentara Suites, by General Manager Albert Lafuente, who has been an expat executive for more than a decade. A Cebuano, his last posting at home was at Shangri-la Mactan.

While we marvel at what the Vietnamese have achieved, let us reaffirm, too, our determination to forge ahead, overcome obstacles, and attain our dreams for our country and people.

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