Dominic Scriven: Vietnam is the winner of the underdogs | Dragon Capital Vietnam (DCVFM) | EP 374

Vietnam: A Nation’s Ascendance - Insights from Dominic Scriven

Key Concepts:

• Đổi Mới (Doi Moi): Vietnam’s economic renovation policy initiated in 1986, shifting from a centrally planned economy to a socialist-oriented market economy.
• King and VM: The mantra of 2025, representing enthusiasm, ambition, and self-confidence in Vietnam’s growth.
• Dragon Symbolism: The dragon as a cultural symbol in Vietnam representing energy, life, and historical origins.
• Foreign Direct Investment (FDI): The role of foreign investment in Vietnam’s economic development, particularly post-1994.
• Banh Mi: The Vietnamese sandwich, highlighted as a key element in cultural exchange and engagement.
• The Sorrow of War (Nỗi Buồn Chiến Tranh): A seminal Vietnamese novel by Bảo Ninh, offering a lyrical portrayal of the war’s impact.
• Propaganda Art: The significance of political art in Vietnam, particularly in the early 1990s, and its evolving role.

I. Historical Context & Initial Impressions

The conversation centers on Vietnam’s remarkable transformation, particularly over the last 30 years. Dominic Scriven initially encountered Vietnam through its representation in Western culture during the 1970s and 80s, specifically as a symbol of the underdog in opposition to larger powers (referencing the Vietnam War and its portrayal in music and political movements like the Nicaraguan Sandinistas). His professional interest sparked in 1990, observing a nation seemingly isolated – with friendships limited to the former Communist bloc, tensions with China, a US embargo, and regional containment by ASEAN – yet possessing an undeniable allure. He describes a sense of intrigue at a country “guiling, entrancing and compelling.”

II. The Impact of Đổi Mới & Early Challenges (1990s)

The period following 1990 is characterized as a difficult transition for Vietnam. The collapse of the Soviet Union and the Eastern Bloc removed key allies, while the US embargo and regional tensions created a challenging geopolitical landscape. The lifting of the US embargo in 1994, along with the introduction of foreign investment legislation in 1989 and the first company law in 1992, were pivotal moments. These changes opened Vietnam to foreign capital, technology, and expertise, initiating a period of rapid development. Scriven emphasizes that the initial focus of Đổi Mới was on agriculture, granting farmers greater accountability, followed by opening to foreign investment.

III. Vietnamese Adaptability & Learning Curve

A recurring theme is the remarkable speed with which Vietnamese individuals and institutions adapt and learn. Scriven notes that foreign investors consistently underestimate the pace of development, often exceeding initial expectations. This rapid learning curve is attributed to a unique combination of factors, including a receptive atmosphere for new ideas, a lack of paralyzing bureaucracy, and a strong work ethic. He highlights the Vietnamese saying that “no” often means “not yet,” reflecting a positive and proactive mindset.

IV. Cultural Engagement & “Soft Power”

Vietnamese cuisine, particularly the banh mi, is identified as a leading force in cultural engagement with the world. Scriven argues that engaging through food – “engaging on the gut level” – is a powerful way to build connections and foster understanding. He also discusses the potential for Vietnamese culture to achieve a similar level of global recognition as Korean culture (K-Pop, K-Dramas), though acknowledges that Vietnam has yet to fully capitalize on this opportunity. Tourism is identified as the “lowest hanging fruit” for promoting Vietnamese culture and driving economic value.

V. Dragon Capital & Foreign Investment

Scriven details the origin of the name “Dragon Capital,” inspired by Norman Lewis’s book A Dragon Apparent and the historical and cultural significance of the dragon in Vietnam (representing energy and life) and his Welsh heritage. He explains Dragon Capital’s role as a bridge between Vietnamese companies seeking investment and foreign investors. He emphasizes the significant impact of foreign investment, not just in terms of capital, but also in the transfer of knowledge, technology, and best practices. He notes that while foreign-invested companies employ around 2 million people, their impact extends far beyond that number.

VI. Personal Connections & Influences

Scriven reflects on the individuals who have profoundly impacted his life in Vietnam, including a Vietnamese language teacher (Trịnh Tây), his landlady and her family, his wife (who has passed away), business partners, and cultural figures like Bảo Ninh, author of The Sorrow of War. He highlights the importance of personal connections and the unexpected turns life takes, attributing his long-term commitment to Vietnam to a combination of coincidence and inertia. He praises Bảo Ninh’s novel as a powerful and lyrical portrayal of the war’s impact on a generation.

VII. Challenges & Future Prospects

Scriven acknowledges ongoing challenges facing Vietnam, including infrastructure limitations (airports, roads), income inequality, and the need for continued governance improvements. He notes the recent headlines regarding food safety concerns but downplays their overall impact. He also points out the relatively recent history of economic liberalization (starting in the 1990s) and the rapid pace of change, which creates inherent challenges. He highlights the unique characteristic of Vietnam where everyone appears to be working, contrasting it with the visible homelessness prevalent in Western countries.

Notable Quotes:

• “Vietnam was a hero of the underdog.” – Reflecting its cultural significance in the 1970s and 80s.
• “Here is this extraordinary country with an extraordinary history and extraordinary present…sitting slap in the middle of Asia.” – Scriven’s initial impression of Vietnam in 1990.
• “When you talk people through their stomach, I mean, you engage on the right level, right? It's the gut. That's the that's the key determinant of of feelings.” – On the power of cuisine in cultural exchange.
• “The ability of Vietnamese ability to go up the learning curve quickly is most impressive.” – Highlighting a key characteristic of the Vietnamese people.
• “The word for no in Vietnamese is not yes. And of course often that means not yet.” – Illustrating a positive and proactive mindset.

Conclusion:

The conversation paints a portrait of Vietnam as a nation undergoing a remarkable transformation, driven by its people’s adaptability, resilience, and openness to new ideas. While challenges remain, the country’s trajectory is overwhelmingly positive, fueled by economic growth, increasing cultural influence, and a strong sense of national identity. Scriven’s personal journey and observations offer a unique and insightful perspective on Vietnam’s past, present, and future, emphasizing the importance of understanding its history, culture, and the remarkable spirit of its people.