Op-ed by Dr. Philipp Rösler: Switzerland of Southeast Asia

The Vietnamese are hard-working, disciplined, and entrepreneurial in their thinking – the very virtues that make a society strong; without them, even large economies are threatened with decline.

Dr. Philipp Rösler

Every time I land in Ho Chi Minh City, I am fascinated by the view: the high-rises, especially the illuminated Landmark 81 skyscraper, the second-tallest building in Southeast Asia, never fail to impress me. Even during the final approach, you can almost feel the city’s dynamism.

All the more, I regret that so few people are familiar with modern-day Vietnam, or, to put it differently, that so many still carry an image of the country shaped by the music, reports, and films of the 1960s and 70s during the Vietnam War. That image may have been justified until 1986. Still, it has long since ceased to reflect the realities of life in Vietnam, especially since the country began opening its economy under the Doi Moi reforms.

One Hundred Million People

This process of opening made rapid economic growth possible and has given rise to a strong and still expanding middle class. In 1986, Vietnam had around 60 million inhabitants. Today, there are 100 million Vietnamese. And while the country’s GDP stood at 27 billion US dollars back then, it is expected to reach 500 billion USD this year.

However, people are more important than numbers. The population figure of one hundred million is impressive in its own right. Additionally, the average age is approximately 33, underscoring the dynamism, potential, and opportunities of Vietnamese society. Above all, it is Vietnam’s young generation that inspires. Nowhere in the world is there a population group as entrepreneurial in spirit as the young people of this country.

Wherever you look, in every street and on every corner, there are small shops, restaurants, and businesses. Almost every family is engaged in some form of entrepreneurial activity. Introducing private ownership as part of the Doi Moi economic reforms unleashed forces that have made Vietnam’s growing prosperity over the past forty years possible.

Drones Distribute Seeds

As a liberal, one might find it hard to accept, but this development was supported by smart decisions made by the leadership of what is, after all, a socialist one-party state. That leadership observed comparable economic developments worldwide and then, although initially cautious, ultimately implemented them decisively. This explains the relatively slow and at times hesitant privatization, as well as the steady push for digitalization at all levels.

While in Germany people still worry about mobile reception every time they take a train, even in the Mekong Delta in southern Vietnam, there is at least 3G, and often 4G coverage in every rice field. And for good reason: agriculture still contributes around 33 percent to the country’s GDP and remains an important economic sector, even in 2025 — highly modern and digital.

Formerly state-run agricultural cooperatives have long since evolved into publicly listed companies, some of which comprise up to 20,000 smallholder farmers and their family farms. The use of high-tech in agriculture is taken for granted in Vietnam. In rice cultivation, every smallholder has access to a smartphone app that enables them to plan the use of fertilizers, herbicides, and water, as well as manage their farming in an environmentally sustainable manner. The fact that drones have long been used for efficient and eco-friendly seed distribution no longer surprises anyone.

Digitalization is even more visible in the cities than in rural areas. A strong infrastructure and quality education, combined with the entrepreneurial spirit and diligence of the young generation, have given rise to a vibrant, dynamic, and highly successful start-up culture. This scene has long moved beyond simply copying American and European business models and is now generating its own ideas. Innovations across the full range of digital technologies can be found in Vietnam, including AI solutions, blockchain applications, data centers, edge networks, streaming platforms, and exciting e-sports services. The fact that Vietnam has long been producing its own electric vehicles is mentioned here only in passing.

Sporting Goods and Payment App

In this dynamic ASEAN country, you may find both: traditional manufacturing and advanced technology. Many entrepreneurial success stories, including some from Switzerland, would likely not have been possible without Vietnam. For example, the globally successful Swiss sportswear company On Shoes manufactures its products in Vietnam. However, few people realize that the payment app Twint – another top Swiss product – was developed almost entirely by Vietnamese software engineers. This is no surprise for those who are even slightly familiar with Vietnam. The Vietnamese are often likened to the Swiss of Southeast Asia: they are hard-working, diligent, disciplined, entrepreneurial, and performance-oriented.

These virtues enabled growth and prosperity across the German-speaking world after the end of the Second World War. They are virtues that can make a society strong and successful. However, even strong and advanced economies are not immune to decline when these virtues fade into the background, especially when other, much more dynamic countries are rapidly catching up.

The economies of the ASEAN community have the advantage that the existing and burdensome bureaucracy has not yet reached European proportions. However, corruption in Vietnam remains a significant obstacle and continues to slow economic growth, despite numerous government efforts to combat it.

Liberal Idealist

Precisely because it is impossible to overlook that Vietnam is a socialist one-party state; it is worth emphasizing that a nation’s economic success depends only to a limited extent on its form of government. India is the largest democracy in the world, yet it does not have the strongest economy. On the other hand, China is the world’s second-largest economy, yet it remains a communist one-party state.

What matters more than the form of government is the strength of a country’s institutions. A strong education and legal system, as well as good infrastructure, are essential. The reliability of political decision-making, which is vital for the economy, remains a domain of politics. But even here, there is little correlation between the type of government and the long-term consistency of political decisions.

Nonetheless, as a liberal idealist, I continue to believe that in the long run, a form of government that grants its citizens freedom beyond purely economic liberty is more likely to succeed. Freedom creates space for creativity, which leads to new ideas; these ideas, when they grow in the market, become innovations. Innovations are essential for every society and economy to remain competitive in the long term.

Still, there is no guarantee that my idealism will prove right. Vietnam shows that the form of government matters less. Ultimately, it is the people who matter – their attitude toward growth and prosperity, as well as their virtues and values. That is something we Europeans can not only observe in Vietnam but also learn from it.

Dr. Philipp Rösler, former Vice Chancellor of Germany, is Secretary General of Global Neighbours.

This op-ed was originally published in German at Weltwoche.ch: https://weltwoche.ch/daily/schweiz-suedostasiens/

English translation done by Global Neighbours.

Image: Natnan – stock.adobe.com