Lessons for India from Vietnam

What India can learn from Vietnam's reforms, openness and education, where the countries differ, and a recap of the module.

Vietnam and India both seek manufacturing-led growth.

Lessons

Openness: trade deals attracted export factories.
Ease of business: fast approvals and industrial parks.
Foundational education: strong schools produced capable workers.
Farm reforms first: raising rural incomes built a base.

Differences

Vietnam is much smaller, around 100 million people.
One-party rule allows quick decisions; India’s democracy involves more negotiation.
India has a larger domestic market and stronger services exports.

Competition and cooperation

Vietnam and India compete for China+1 investment.
They are also partners; Indian firms like Tata and others have invested in Vietnam.

Module recap

Post-war planning led to shortages and hyperinflation.
Farm reforms made Vietnam a rice exporter by 1989.
Samsung became Vietnam’s largest exporter.
Trade deals made Vietnam extremely open.
China+1 boosted investment.
SOEs and the Party shape the economy.
Vietnam is the second-largest coffee producer.
Poverty fell dramatically.
Schools perform well above income level.
A property and bond crisis exposed weak regulation.
US tariffs tested the export model.

The parallel paths

Both India and Vietnam want to host phone factories. Vietnam moved first with trade deals and parks; India is catching up with PLI schemes and a huge domestic market.

Thinking India should copy Vietnam exactly

Size, politics and markets differ; lessons must be adapted.

Key takeaways

Openness, ease of business and education drove Vietnam's rise.
Vietnam is smaller and politically different from India.
Both compete for China+1 investment.
India can adapt Vietnam's lessons to its context.