Vietnam - Between communism and capitalism | DW Documentary

Vietnam: Between Economic Miracle and Communist Control

Key Concepts:

• Doi Moi: The Vietnamese policy of economic liberalization initiated in 1986, transitioning towards a “socialist-oriented market economy.”
• Oligarchs: Wealthy and influential business leaders with close ties to the Communist Party, controlling key industries.
• Socialist-Oriented Market Economy: Vietnam’s economic model combining elements of socialist planning with market-based mechanisms.
• One-Party State: Vietnam’s political system dominated by the Communist Party of Vietnam.
• E-sports: Competitive video gaming, a rapidly growing industry in Vietnam.
• Aquaculture: The farming of aquatic organisms, particularly shrimp, a major economic driver in coastal regions.

I. The Italian Illusion: Phu Quoc’s Architectural Spectacle

Phu Quoc Island is experiencing a dramatic transformation with the construction of a city meticulously modeled after Italy. This 2.7 billion euro project, backed by wealthy real estate magnates and the government, aims to boost tourism, which has grown by 60% in the last decade. In 2025, Phu Quoc and neighboring islands welcomed over 6 million visitors, including many from Asia and Eastern Europe. The development includes recreations of Roman ruins and features like the world’s longest sea cable car (8km long, costing 410 million euros), connecting the island to smaller islands in just 20 minutes. A French family visiting highlights the surreal nature of the experience, noting the attention to detail but also the inspiration drawn from holiday clubs in Greece and Spain. This showcases Vietnam’s ability to create hypermodern attractions alongside its traditional culture.

II. Vietnam’s Economic Boom: From Poverty to Prosperity

Thirty years ago, Vietnam was a largely impoverished and rural nation. Today, it’s a booming economy with growth exceeding 6%, modernizing rapidly and aspiring to become “Asia’s next tiger.” This transformation is largely attributed to the Doi Moi reforms of 1986, which liberalized the economy and partially privatized key industries. The number of millionaires has doubled in the last decade, reaching almost 20,000 in 2023, and a new middle class is emerging. Examples include a shrimp farmer who was able to purchase a car, scooter, and massage chair thanks to the success of his farm. This economic growth is driven by industries like aquaculture (Vietnam is now one of the world’s largest shrimp producers, with over 1 million tons produced annually) and coffee (Vietnam is the world’s second-largest coffee producer after Brazil).

III. The Communist Party’s Enduring Influence

Despite the economic liberalization, Vietnam remains a one-party communist state ruled by the Communist Party of Vietnam for half a century. The party maintains significant control over the economy and society. Land ownership, for example, remains with the state, with individuals leasing land from the government. This control is exemplified by the powerful General Secretary To Lam, who sets the political agenda. The party’s influence is also evident in the structure of large corporations like FPT, a leading technology company, where key leadership positions are often held by party members.

IV. The Return of the Diaspora: TK Nguyen’s Story

The economic opportunities created by Doi Moi are attracting Vietnamese migrants who previously fled the country. TK Nguyen, an American of Vietnamese descent, exemplifies this trend. His parents were “boat people” who escaped Vietnam in the 1980s and built a successful life in the US. TK returned to Vietnam to capitalize on the growing market, opening a nightclub (Skylight, costing 2.5 million euros) and investing in e-sports (an e-sports club costing 2 million euros). He aims to bring American business practices and innovation to the Vietnamese entertainment industry. His success demonstrates the potential for Vietnamese-Americans to contribute to the country’s economic development.

V. The Shadow Side of Progress: Repression and Environmental Costs

Vietnam’s economic miracle is not without its downsides. The Communist Party maintains a tight grip on power, suppressing dissent and punishing criticism. Nguyen Trung Ton, a pastor, was sentenced to 12 years in prison for advocating for human rights. His wife, Mrs. Lanh, describes the violence and intimidation her family faced. This highlights the authoritarian nature of the regime and the risks faced by those who challenge its authority. Furthermore, economic growth is often achieved at the expense of the environment. Shrimp farming, while economically beneficial, has led to the destruction of mangrove forests and water pollution due to the use of antibiotics and excessive feed. Fishermen are experiencing declining catches and environmental damage, as evidenced by the polluted waters and dwindling fish populations near aquaculture farms.

VI. Ho Chi Minh City: A Showcase of Wealth and Modernity

Ho Chi Minh City, with a population of 12 million, is the epicenter of Vietnam’s economic boom. The city boasts numerous skyscrapers and luxury shopping malls catering to the wealthy. Mrs. Thao, a coffee magnate and one of the country’s richest women, embodies this prosperity. She owns King Coffee, a competitor to Starbucks, and has built a fortune through the coffee industry. Her lifestyle includes luxury shopping (spending 75,000 euros on coffee beans), a large entourage, and a chauffeur-driven van. The contrast between her wealth and the bustling street markets highlights the growing income inequality in Vietnam.

VII. FPT: A Model of State-Capitalist Collaboration

FPT, a leading Vietnamese technology company, exemplifies the close relationship between the Communist Party and the private sector. Chu Ha, a high-ranking executive at FPT, embodies the success of this model. She studied in the US and now leads FPT’s software subsidiary, serving clients like Boeing and Microsoft. FPT’s corporate university, inspired by Google’s campus, aims to train future engineers and contribute to Vietnam’s technological advancement. However, the party maintains a strong influence over FPT, with the CEO being the son-in-law of a regime founder.

VIII. The Future of Vietnam: Balancing Growth and Control

Vietnam’s future hinges on its ability to balance economic growth with political control and environmental sustainability. The Communist Party continues to steer the country’s development, promoting economic liberalization while maintaining its authoritarian grip on power. Entrepreneurs like TK Nguyen are capitalizing on the opportunities presented by this unique environment, but the risks of political repression and environmental degradation remain significant. The country’s success will depend on its ability to address these challenges and create a more inclusive and sustainable future.

Notable Quote:

“We Vietnamese are a strong people; we know how to stand together behind our government in difficult times.” – Mrs. Thao, Coffee Magnate.

Data & Statistics:

• Tourism Growth: 60% growth in the last 10 years.
• Visitors to Phu Quoc (2025): Over 6 million.
• Cable Car Cost: 410 million euros.
• Economic Growth: Over 6% annually.
• Millionaires (2023): Almost 20,000 (double the number from 10 years prior).
• Average Monthly Salary (2025): Around 325 euros.
• Shrimp Production: Over 1 million tons per year.
• Shrimp Farm Turnover (Quang Duy): Approximately 150,000 euros annually.
• TK Nguyen’s Nightclub Investment: 2.5 million euros.
• TK Nguyen’s E-sports Club Investment: 2 million euros.

Conclusion:

Vietnam presents a compelling paradox: a rapidly developing economy driven by capitalist principles, yet firmly controlled by a communist regime. While the economic transformation has lifted millions out of poverty and created a burgeoning middle class, it has also come at the cost of political freedom and environmental sustainability. The future of Vietnam will depend on its ability to navigate these complex challenges and forge a path that balances economic progress with social justice and environmental responsibility.