Financial Times FT.com

Discreet success of a rising Vietnam

Published: April 26 2006 03:00 | Last updated: April 26 2006 03:00

In spite of the ancient enmity between China and Vietnam, Hanoi's Communist leaders decided two decades ago to follow the Chinese rather than the Soviet model of reform in the Gorbachev era. That meant liberalising the command economy while keeping political control firmly in the hands of the ruling party.

So far, this strategy of capitalism without freedom has paid off. As Communist leaders ended their national party congress in Hanoi yesterday - retaining Nong Duc Manh as general secretary and choosing younger replacements for the prime minister and president - they were able to look back on an enviable period of economic growth and poverty reduction.

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