Asia's Cauldron

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Authors: Robert D. Kaplan
economy grew by5.5 percent. “This is one of the most impressive records of poverty alleviation in world history,” says a Western diplomat. “They have gone from bicycles to motorcycles.” That to them may be democracy. And even if it isn’t, one can say that the autocracies of Vietnam and China have not robbed people of their dignity the way those of the Middle East have. “The leaders of the Middle East stayed in office too long and maintained states of emergency for decades, that is not the case here,” a former high-ranking Vietnamese political leader told me. “But the problems of corruption, huge income gaps, and high youth unemployment we share with countries of the Middle East.” What spooks the Communist Party here is less the specter of the Arab Spring than that of the student uprising in 1989 in China, a time when inflation was as high in China as it was in Vietnam until recently, and corruption and nepotism were perceived by the population to be beyond control: again, the case with Vietnam. And yet, party officials also worry about political reform leading them down the path of pre-1975 South Vietnam, whose weak, faction-ridden governments were integral to that state’s collapse; or to late-nineteenth- and early-twentieth-century China, with its feeble central authority that led to foreign domination. Thus, Vietnamese officials openly admire Singapore: a predominantly single-party
company
state that emanates discipline and clean government, something Vietnam’s corruption-ridden regime is still a long way from.
    The Singapore model was made explicit for me at the Vietnam-Singapore Industrial Park, twenty miles outside Ho Chi Minh City, or Saigon as it is still called by everyone outside of government officialdom. I beheld a futuristic world of perfectly maintained and manicured right-angle streets where, in a security-controlled environment, 240 manufacturing firms from Singapore, Malaysia, Taiwan, South Korea, Europe, and the United States were producing luxury golf clubs, microchips, pharmaceuticals, high-end footwear, aerospace electronics, and so on. In the next stage of development, luxury condominiums were planned on-site for the foreign workers who will live and work here. An American plant manager at the park told methat his company chose Vietnam for its high-tech operation through a process of elimination: “We needed low labor costs. We had no desire to locate in Eastern Europe or Africa [which didn’t have the Asian work ethic]. In China wages are already starting to rise. Indonesia and Malaysia are Muslim, and that scares us away. Thailand has lately become unstable. So Vietnam loomed for us: it’s like China was two decades ago, on the verge of a boom.” He added: “We give our employees in Vietnam standardized intelligence tests. They score higher than our employees in the U.S.”
    There are three other Vietnam-Singapore Industrial Parks in the country, whose aim is to bring the corporate, squeaky-clean, environmentally
green
, and controlled Singapore model of development to Vietnam. They are among four hundred industrial parks located throughout Vietnam, from north to south, that all to greater and lesser extents promote the same values of Western-style development and efficiency. The existing megacities of Saigon and the Hanoi-Haiphong corridor cannot be wholly reborn, their problems cannot be wholly alleviated: the future is new cities that will relieve demographic pressure on the old ones. True modernity means developing the countryside so that fewer people will want to migrate to cities in the first place. These industrial parks, with Singapore as the role model, are what will help change the Vietnamese countryside. Because their whole purpose is to be self-contained, they bring infrastructure, such as electricity and water, along with them, as well as one-stop shopping for foreign firms seeking government permits.
    Whereas

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