Hopes Dash for Nk to Adopt Vietnam's Economic Model

By Park Hyong-ki

Hopes have dashed for North Korea to adopt Vietnam's economic development model as it failed to strike a denuclearization deal with the United States in Hanoi.

U.

S President Donald Trump and North Korean leader Kim Jong-un ended their talks earlier than expected as Trump refused to lift sanctions as Pyongyang wanted. The US president has constantly indicated he will not rush to reach a deal.

This came as a surprise as the two sides discussed the North's economic future with Vietnam's foreign investment model gaining the spotlight.

Trump has said Vietnam's “thriving” economy could serve as an “awesome” model offering a lot of growth opportunities for North Korea, if Pyongyang completely dismantles its nuclear arsenal.

Analysts say Vietnam's reforms, policy flexibility and openness to foreign investments can be useful for North Korea to follow, despite the breakdown of the summit.

This is because it would be hard for Pyongyang to catch up with China, given that its economic gap with Beijing has become “too wide and huge” ― not to mention that with South Korea

With Vietnam's growth in manufacturing, thanks to its 1986“Doi Moi” policy aimed at renewing its economy by adopting Western market principles mixed with socialism, the country is rising fast and has the capability to overtake China as Asia's production center

After more than three decades, it is starting to see fruitful results, as Vietnam's economy grew 71 percent in 2018, above its initial target of 67 percent.

gettyimagesbank

There is some resemblance with the way China and Vietnam grew through reforms and market openness.

But analysts say Vietnam has been more “flexibility and open” to foreign investors than China

“Vietnam's attitude towards foreign investors has been very friendly,” said Kim Jin, a senior analyst at Woori Finance Research Institute, part of Woori Financial Group.

The similarities between Korean and Vietnamese cultures could make it easier for North Korea to take after Vietnam's economic model. Because of this, South Korean...