~ Le Viêt Nam, aujourd'hui. ~
The Vietnam News

[Year 1997]
[Year 1998]
[Year 1999]
[Year 2000]
[Year 2001]

Last Refuge

Hanoi calls on heroes and values for stability


HANOI - Hotels are empty, handmade "For Rent" signs dangle from office buildings and homes, the power supply blinks on and off and peasants continue to gripe about corruption across northern Vietnam. So what does Hanoi do with its economy seemingly stuck in quicksand? It holds a pep rally with a revivalist tinge.

The latest meeting of Vietnam Communist Party's Central Committee, which opened on July 6, is shaping up as a trip down memory lane with the hope of finding answers to an unstable future. The main item on the agenda for the semiannual conclave of the body's 170 members is culture.

As the party searches for an identity in a world now woefully bereft of suitable economic and political role models, it has decided to call on party founder and former President Ho Chi Minh (who's been dead for nearly 29 years) and traditional Vietnamese values for guidance.

Like a pep rally, it will provide more show than substance for a country that many economists feel desperately needs decisive leadership to introduce new economic reforms. "The present and future involve a lot of danger for the party," says one retired official. "The more they reform, the less power they have."

To try to shore up that power, the party has essentially followed three paths since conservative Gen. Le Kha Phieu took the helm in December: It has strengthened the police and army, promised to introduce small measures that it calls democracy, and now is reviving a dead independence hero as the standard-bearer of its legitimacy.

The genuine concern about the erosion of values, however, masks what may be Phieu's ultimate goal: to enhance his own stature and escape the shadow of former party chief Do Muoi, who still wields considerable power as an adviser. An indication of Phieu's growing self-confidence is that his plenum speech was printed in state newspapers before the Central Committee had a chance to consider it--a breach of normal protocol. A Western diplomat says Phieu is even trying to emulate Ho in his rural walkabouts by travelling without a large entourage and meeting farmers before calling on local officials.

But the father of modern Vietnam is a tough act to follow. Traditional values like patriotism, self-sufficiency and sacrifice are an inefficient hedge against new ideas, particularly among the young. Therein lies the dilemma for Vietnam's leaders: Well over half the 75 million population is under 25 and most are more concerned with being able to afford a Honda Dream motorbike and have a career than with communist dogma.

Harping on values is only a small part of the answer, say those who would like to see economic reform move faster. Although government officials have pledged to cut red tape and make life easier for foreign investors who are a critical source of economic growth, it's not yet clear that any of this is having an effect. Vietnam remains a country where there's little happening but a lot going on.

For instance, on July 4, Vice-Minister of Planning and Investment Nguyen Nhac acknowledged at a rare press conference that land-rent cuts promised in February have yet to take effect. He said the government is still waiting for the necessary regulations to implement them, but he promised the reductions would be retroactive. Foreign companies "will have to wait a while, but they'll benefit fully," he said.

But some investors can't wait any longer and potential new ones don't seem to dare try. Investment is down this year, exports are growing at just half the forecast pace, and inflation is running at 8.6% year-on-year.

The party remains divided over what to do--another reason to turn to values. Clearly government officials led by Prime Minister Phan Van Khai are pushing for faster reform of state firms and the banking system. But former party chief Muoi maintains that the economy is stable and doesn't need a fillip. He even recently recommended that Vietnam borrow more to purchase second-hand equipment in the region.

Nevertheless, Muoi is coming under more criticism, albeit veiled. Several officials have recently related--spontaneously--anecdotes that subject Muoi to near ridicule. At a recent meeting in Hanoi, they say, the 81-year-old adviser rambled for five hours on topics as diverse as cement production and the scandal of short skirts many Vietnamese women now wear. On another occasion, he called peasant protesters "narrow-minded reactionaries"--but when presented with inspection results that showed their grievances were valid, he apologized and criticized local officials for being arrogant and corrupt.

Conservatives may not be giving in on economic matters, but they appear to be more willing to consider small administrative reforms to calm the restive countryside. In February, the party called for more transparency in local budget matters.

And soon officials at different levels will begin to study a set of "democratic principles" that mainly address questions of taxation--how much to levy and whether citizens should be asked for additional "contributions" to fund local infrastructure projects, and if so, how. It was this issue of extra fees that fuelled last year's peasant revolts.

"We must see how they implement it--at least it's something," says one sceptical official. But as for other political rights, he says: "They won't pay much attention unless they're molested."

By Faith Keenan - Far Eastern Economic Review, July 16, 1998.