Vietnam – Raging Growth on Fragile Foundations

I am about to conclude a short vacation trip to my hometown in Vietnam. Coming back to Saigon, or more officially and formally known as Ho Chi Minh City, after two years away is an eye-opening. Areas that used to be abandoned are now inhabited. New businesses pop up in town, ranging from speakeasy bars, restaurants to a new airline. Incumbents are trying to reinvent themselves to stay competitive, as in the case of Grab. The city is littered with construction bonkers, even in the business area and main attraction site such as Ben Thanh Market. Changes seem to take place over night in arguably the New York of Vietnam, but they seem to be on fragile foundations

Infrastructure

If you are in Saigon, it won’t take you long to see the old and largely insufficient infrastructure that is being used by more than 10 million inhabitants. Streets most of which were built decades ago are now too small to accommodate the number of citizens that only increase over time. Big buses and a rise in car ownership worsen the situation. The streets across the city, especially in the downtown area, are almost undrivable between 7am and 8pm. It creates so much inefficiency when the time taken to travel a certain distance in this city is a lot more than what it should have been.

I was traveling to Hanoi, the capital, from Saigon last week. I arrived at the airport at 4am for a 5:30am flight, thinking that it would have been a breeze through the check-in and security. How wrong was I! The airport in Saigon has long been running way above its capacity. Funding for a new airport was just recently approved, yet the project has been in discussion for years. It won’t be another 5 years at least until Saigon can have a new terminal.

Public health

Ever since I touched down in Saigon, I have been warned about the hygiene of the food here. There is an accepted truth around here that unless you eat at fancy and pricey establishments, the food is likely drugged and doesn’t meet the hygiene standards, ranging from sugarcane juice, beef, pork or fruits. The number of cancer cases in Vietnam has been alarmingly increasing over the year. Is it just a coincidence or is there some correlation or connection between the lack of hygiene in the food and the explosion of cancer cases?

Another challenge that the city has to face is air pollution. There is virtually no regulation on the exhaust from scooters or vehicles in Vietnam. As the city is packed with folks, scooters and cars, the air is increasingly contaminated. Here is what it looks like around 8am from an airplane. I am pretty confident that it wasn’t fog

Skill labor

I’ll let the following excerpt speak about the quality of skill labor and education in Vietnam

Vietnam is 11th out of 12 Asian countries in a World Bank ranking of quality of human resources with 3.79 points out of 10.

South Korea tops with 6.91 points followed by India with 5.76 and Malaysia with 5.59, Chung Ngoc Que Chi of the Ho Chi Minh City Technical and Economic College listed these numbers in a presentation at a forum on enhancing Vietnamese workers’ skills held in Hanoi on Friday and Saturday.

She also cited a survey by the World Bank and the Central Institute for Economic Management (CIEM) of 350 businesses in production and services in Hanoi, HCMC and neighboring provinces, which showed that 66 percent of businesses employed foreign laborers and 36 percent of domestic businesses were dissatisfied with the quality of education and training of Vietnamese human resources.

Chi said Vietnam suffers in terms of both quality and quantity, with shortcomings in foreign language and IT skills and ability to use technologies. She blamed it on the large gap between the country’s vocational education and the market’s requirements, and called for forging close ties between schools and businesses for training.

Source: VnExpress

In my opinion, public infrastructure, public health and education are some of the core foundations of a country. So far, what I have seen on this trip hasn’t given me cause for optimism on these counts. We have a lot to do as a nation.

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