After Doi Moi in 1986, Who Built Vietnam From Nothing? | Sam Korsmoe & Sam Van | EP 386

Key Concepts

• Innovation: Defined not as a high-tech exclusive, but as a mindset of constant improvement, adaptation, and problem-solving across all sectors (agriculture, manufacturing, services).
• Đổi Mới (Renovation): The 1986 policy shift that transitioned Vietnam toward a market-oriented economy, serving as the foundation for the country's 40-year journey of reinvention.
• Middle-Income Trap: The economic challenge where a country’s growth slows down as it reaches middle-income status, often due to a loss of "hunger" for growth or demographic shifts.
• Risk Management: The core philosophy that innovation requires taking calculated risks, where failure is viewed as a learning opportunity rather than a permanent stigma.
• Purpose-Driven Innovation: The belief that successful innovators are motivated by a desire to solve societal problems ("If I don't do it, who will?") rather than just financial gain.

1. The Nature of Innovation in Vietnam

The speakers argue that innovation in Vietnam is unique because it is not limited to the "Silicon Valley" model of high-tech startups. Instead, it is a grassroots, daily process of "tinkering."

• Broad Application: Innovation is seen in a farmer switching from rice to shrimp due to rising salinity, or a factory worker finding more efficient ways to manage a production line.
• The "Hunger" Factor: A critical theme is the "hunger for growth." The speakers express concern about whether future generations, who have not experienced the same physical hardships as their parents, will maintain the drive necessary to push Vietnam to high-income status by 2045.

2. Frameworks for National Development

The discussion highlights how Vietnam’s journey mirrors other "Rising Tigers" (Korea, Taiwan, Singapore) but with its own specific nuances:

• The "Catch-up" Mode: Vietnam is in a constant state of policy adjustment. The government acts as a sponsor, creating regulatory frameworks that allow the private sector to flourish.
• Private Sector Growth: There is a strategic shift in Vietnam to increase the private sector's contribution to the economy from 50% to 70% of output.
• Regional Integration: Sam Van emphasizes that Vietnam must look beyond domestic borders and integrate into the regional grid (VIP: Vietnam, Indonesia, Philippines) to solve larger, cross-border problems.

3. The Role of Failure and Resilience

• Stigma vs. Opportunity: While failure carries a stigma in many Asian cultures, the speakers argue that in the context of Vietnam’s 40-year history of war and subsequent economic reform, failure is simply a part of the "constant reinvention" process.
• Adaptability: The ability to "bob and weave"—to pivot when a strategy fails—is identified as the primary trait of successful Vietnamese innovators.

4. Case Studies and Real-World Applications

• Phu My Hung (Taiwanese Investment): The transformation of a swamp into a thriving urban center with 400,000 residents, schools, and hospitals is cited as a prime example of visionary investment and long-term commitment.
• Coto (Jimmy Pham): The first social enterprise in Vietnam, which emerged from a personal desire to help street children, effectively creating a new legal and social category for businesses in the country.
• Gene Solutions: A group of scientists applying DNA sequencing technology to healthcare, demonstrating how high-tech innovation is now taking root in Vietnam.
• Citibank (Bradley Lone): An example of how foreign expertise helped build the "fabric" of Vietnam’s modern banking sector by training local leaders who now run major domestic firms.

5. Notable Quotes

• Sam Corsmo: "To think that innovation and innovators must come from the high-tech industry gives a very narrow view of what innovation is."
• Sam Van: "Innovation is not loud and is not up in the center... it comes down to people's expertise, knowledge, and how they want to apply the tools to meet their purpose."
• Sam Corsmo: "The more risk you take, the more returns you get."

6. Synthesis and Conclusion

The book 40 Years of Innovators serves as a collection of 25 personal stories that document Vietnam's evolution since the Đổi Mới reforms. The main takeaway is that Vietnam’s future success depends on its ability to transition from "zero-to-one" innovation (starting from nothing) to "one-to-ten" innovation (scaling and refining). The speakers conclude that while the country has made massive strides, the next phase requires a shift toward regional integration, the development of homegrown "champions" to replace multinational renters, and a sustained, purpose-driven "hunger" for growth among the younger generation.