Why does Vietnam look much more modern and developed than India?





Suresh Kumar

Having worked in Vietnam for 6 years (Hanoi and Binh Duong ) and having travelled different part of Vietnam and India, I think, I am eligible to answer this. Vietnam has a definite infrastructure and more FDI’s than in India and the unemployment rate is very low. Industrialists are looking for provinces, where availability of labour is more, which is just opposite to India. In VSIP alone there are employees around 4000- 5000 are working in a Single Factory, which is rare in India. With the current scenario of trade war between US and China, most of the investment will be diverted to Vietnam than to India. Saigon Climate is just like Kerala, where as Hanoi Climate is like Delhi. Rural areas are same like Northern Village area. Vietnamese people enjoy more freedom and better standard of life than Indians generally.


越南的实业家们不断物色劳动力更丰富的省份,这与印度正好相反。越南工业园内一家企业就能招募到4000- 5000名员工,这在印度实属罕见。







Apoorv Jain


Why did Vietnam develop better than India while they started opening at nearly the same time?

One line answer: Due to the sensible analysis of it's leaders of various economic models.



Le Duan, CPV General Secretary from 1960 to 1986, was very critical of economic models taught by the Soviet Union and for chronic economic malaise and blunders, although despite some innovative thinking Le Duan himself was a strong opponent of market economy and much of his policy turned out counter-productive.

But even being a socialist ideologically, he was well aware of the crisis which stalinism had brought to and to china


但即便他支持社 会主义,他还是清醒地看到了苏联的潜伏危机

After the death of Le Duan, Truong Chinh, a high-ranked politburo member and who would then briefly serve as CPV General Secretary (July-December 1986), was another highly influential leader and “the one who laid down the first brick for the House of Reform of Vietnam,” by launching the program of extensive reforms during the 1986.

As Truong Chinh stepped down, Nguyen Van Linh, CPV General Secretary 1987-91, continued to bring concepts of reforms to the nation’s economic life through a nationwide reform program with swee changes.



The old-fashioned centrally-planned economy was replaced with socialist market mechanism, which promoted the concept of a multi-sectoral economy, open-door policies towards international trade and investment, and recognized private property rights

The new Law on Foreign Investment initiated in 1987 enabled a surge of the first wave of foreign direct investments (FDI) flowing into Vietnam, which then reached 10% of GDP in 1994.

This picture shows the amount of FDI inflows in both the countries during the past two decades:





But this picture tells something else, FDI inflows were more in India during same period. So, how come India can be less developed?

I would suggest you now to read this carefully now: Vietnam was the largest FDI recipient among develo countries and economies in transition in proportion to the size of its economy thanks to its “macroeconomic stabilization resulting from Doi Moi (Open door) policy and investor expectations of continuing reforms and improvements in the general investment climate” .

You see, FDI inflows were the best in Vietnam in proportion of it's GDP. Check this image now:





Doi Moi momentum was retained for almost two decades with political consensus over three major principles:


Political stability is a prerequisite of economic development, and the CPV remains to be the unique power;

To achieve economic goals, Vietnam must keep its door open to foreign trade and investment; and,

Gradualism is preferred to avoid ‘deviation from the socialist path’.



渐进主义是避免“偏离社 会主义道路”的最优选择。

This helped Vietnam to get the trust of foreign investors in it's hold. Being a s country, it could kept it's policy stable during all this time asd continued to attract investors for long.

If you see at the growth rate of both countries during the period, they seems to be more or less the same during all along with one or the other outpacing each other for at some points :




But due to small size, less population and requirements, developmental changes are a bit more perceptible in Vietnam as compared to India.





Michael Kim


Which is more developed, India or Vietnam?


India? It's a fact that most Indians are native English speakers who can give impact on the reputation of India, especially on the Web. I am not on either side. But I'd like to raise some of vietnamese voices on behalf of them because I've been there. (yes. I have both Indian and vietnamese friends from whom I receive how it is to be in their countries.)


1. Water

Recently, I've seen TED talks from a good Indian guy who wanted to give stable water supplies to the poor. It was a great talk, and he was respected.

I want to emphasize this because water is big part of the healthy living. I'm not saying the water in Hanoi is particularly clean, but it seems tap water + power is supplied to every household. (which means, boiling water is possible) India, also the same. But it seems that indian land is too big to supply and put water pipes all over the country. Perhaps, water pipe business is going to be a promising business in India.

1. 水




2. Industry

However, car, spacecraft, software industries..etc.. India is more industrialized. Vietnam, on the other hands, is less industrialized because there is no need.

2. 行业


3. People

Vietnamese are happier than Indians.



4. Development

Both countries have grear culture and people.

It's really pointless to compare these two countries and feel happy or down, because without these comparison, smart people know what to do to make themselves happy.

4. 发展






Robert Charles Lee


Why is Vietnam doing better than India?


I think Vietnam seems to be doing better than India mainly because most projects don't seem to run into the kind of deadweight inertia of bureaucracy that characterise or typify India. So projects in Vietnam seem to move along relatively quicker there than the similar in India.

The way I understand it, the statistics are still in India's favour overall. Then again, those statistics may be a little misleading too. Notwithstanding the technical definitions, India has never had a closed economy (even though it might not necessarily have an 'open' one from time to time). India has always traded with the rest of the world, problematic it may have been from time to time in the past.



By contrast, Vietnam was closed off practically completely from 1975 until actual economic liberalisation came in the mid-1990s and really got moving in the early 2000s.

But like the others have highlighted, Vietnam is a rather homogeneous society and has a centralised way of governance, both of which helps considerably. India is a highly heterogeneous society by history and culture and the state is nowhere as centralised as it bills itself, so India has a much steeper uphill to get things done.

So far, that's the picture that appears to me about both countries. So far, both countries are trying to do the right thing and move in the right direction.








Tim Copper

Vietnam developed then India in per capita income,less poor rich gap,Good infrastructure, better city planning, better transport, better health care,better edcation,cleanness and better social etc.

In India high poverty ,high inequality, dirty,shortage of water,shortage of power, bad infrastructure, bad city planning then Vietnam.

Vietnam people more edcated, civilized, mature and modern thinking then Indian people.

India stuck in religious, caste and old traditional but Vietnam not.








Daniel Weber

India is a huge country with a huge population Vietnam is far better off spreading proportional wealth through the country and population. infrastructure at least now (Oct 2019) India has way more modern airports, metro systems, even trains. I agree that overall socialism has made Vietnam way more livable than India but the Vietnamese govt hasn’t been very good at planning and building huge infrastructure projects. The Indian govt has actually become pretty good at that in the last 10 years. Vietnam still haven’t finished the first line of the HCMC metro, and there still isn’t a national highway north to south whereas India has built tons of highway the last ten years. I also think India hugely benefits from having tons of English speaking STEM graduates whereas English proficiency and university education quality in Vietnam is lacking even though people are insanely educated focused just as in India


我也认为社 会主义使越南比印度更宜居,但越南政府不擅长规划和建设大型基础设施项目。





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