Vietnam
Since the end of what’s known as “the Vietnam War” in the United States and “the American War” in Vietnam, the country has seen some huge changes. Vietnam’s rise hasn’t been as powerful or fast as Japan’s post-WWII experience but a construction boom has been underway. In 2010, Vietnam got its first skyscraper, the striking Bitexco Financial Tower, which stands as a beacon in Ho Chi Minh City. An even taller building is currently under construction in the city, expected to rise to about 350 meters and contain a luxury hotel, apartments, shopping and what is said to be Southeast Asia’s highest restaurant and bar.
The middle class has been growing in Vietnam and people have also been trading in bicycles for motorcycles, scooters and automobiles. To help alleviate the traffic on busy city streets, Vietnam’s first-ever subway system has been under construction with the help of foreign investment from Japan, France and China.
The chart below shows how Vietnam’s people have been eager to have access to new technology, with growth in mobile phone subscription rates topping even India and the U.S. during 2002–2012.
While it is clear there has been progress, Vietnam’s transformation has been slower than we’d like. The war was so traumatic and the people remain a bit sensitive about foreign dominance, which has hindered the acceptance of foreign investment. The Vietnamese seem to be gradually overcoming these reservations because of the positive developments they see to the north in China, and we have recently seen more movement in allowing greater foreign investment. Vietnam’s stock market is not very liquid, and it is considered a frontier market; but Vietnam has had a fast-growing economy, and we have found good companies there, including some that are state-owned.
