This year, Vietnam is celebrating an even bigger milestone. That’s because Vietnam’s independence and the end of the Vietnam War both begin and coincide with this 50 year anniversary. This somber remembrance gives a nod to the nation’s stormy past. It is impossible to forget its colonial past under France and its crucial role as the Cold War’s most important battleground. Today, Vietnam is undergoing a dramatic transformation under its authoritarian Communist leadership, which has increasingly embraced capitalism and is focused on driving economic growth.
With this decision, Vietnam is making an unmistakable move towards modernization. The country is currently in the process of deep administrative reorganization, reducing from 63 to 34 provinces and municipalities. Moreover, the government is committed to reducing the number of ministries and agencies from 30 to 17. This restructuring is just one part of a larger effort to make state governance more efficient and foster economic development.
Together, these changes are rapidly changing the nature of the workforce in Vietnam. The country is planning to fire up to 100,000 civil servants this year. These cuts are taking place against a growing economic tide that is bringing a flood of foreign investment into the state. The country’s median age is only 33, meaning it has a young population ready to feed into its economic goals.
It certainly seems that Vietnam’s leaders have the political will to create the kind of environment growth needs to flourish. Perhaps most remarkably, the country has emerged as a go-to option for firms seeking to re-shore their manufacturing from China. With the trade war between the U.S. and China continuing to intensify, businesses all over are looking towards Vietnam as the next best choice.
Two young businesswomen from southern China remarked on the favorable conditions in Vietnam, saying, “The most attractive thing is that the Vietnamese government is very supportive. The electronics industry is expanding out of China and a lot will choose Vietnam.” Their enthusiasm mirrors a larger sentiment that shows just how significant and how quickly the tide is turning in Vietnam’s economic landscape.
This transformation is not without challenges. The country is still dealing with the fallout from U.S. President Donald Trump’s trade war. It already schools a 10% tariff on its exports to the United States, and this is set to increase up to 46%. All of that begs the question of how this would stymie Vietnam’s emerging economy and initial forays into becoming a global hub of trade.
The past reverberates much as they do today, through the pages of their citizen’s memory. As Linh, a local resident, expressed her sentiments about the significance of the day: “I am excited because this is the day when we reunited, when we became one country again.” Vietnam, as these reflections suggest, is a nation focused on the future—but it hasn’t forgotten where it came from.
Culturally, or perhaps subconsciously, many Vietnamese are very eager to get on with their new relationship with the United States. Minh stated, “We don’t hate them. That was the past. Now we want to trade with America. You know globalisation? We want to learn from America.” Such willingness to deepen relations economically represents a greater trend toward cooperation over competition and confrontation.
The shadow of the Vietnam War still hangs deeply over the nation. An estimated three million Cambodians perished at the hands of the Khmer Rouge during the conflict, and millions more were seriously injured. From 1968 to 1975, Vietnam underwent unprecedented devastation. The country survived a higher tonnage of bombs than landed on all theaters of World War II put together. In light of that horror, though, there is today a remarkable sense of yearning for peace and shared development.
An unnamed man captured this spirit when he stated, “We must have peace. We have already made a lot of progress. People’s lives are more prosperous and fulfilled. Now we must work together with the Americans for the future.” This feeling is very characteristic of many Vietnamese who believe that peace and development can only be achieved by working with the international community.
Vietnam is change development at a breakneck speed, and leaders like Linh are taking initiative to be change for good. They want to be part of their country’s optimistic future. She expressed her aspirations, stating, “I want to do a job that will bring more success to Vietnam.” And hell yes for me too, she added fiercely. Such ambitions are indicative of the spirit that has marked this generation as it carries forward from opportunity through disruption.