Resolution 68 embodies a grand political ambition: to transform the private economy into the leading engine of national growth. However, the success of this revolutionary step – which mandates streamlining bureaucracy and consolidating provinces – hinges entirely on the public apparatus undergoing a deeper metamorphosis from a conventional structure into an elite state defined by world-class competence.
I. The policy imperative and the crisis of trust
Revolutionary reforms, such as streamlining bureaucracy and consolidating provinces, are crucial steps toward creating a leaner, more efficient public sector.
We cannot expect an obsolete machine to cultivate dynamic, modern growth. A streamlined government is necessary, but more critically, it must be an elite state—a public service defined by world-class competence.
The recent testimony of Nguyễn Văn Hậu, Chairman of Phuc Son Group, exposed a profound institutional paradox: a public servant earning barely ten million VND per month has the signing authority over documents worth hundreds of billions. This creates a severe asymmetry of power and compensation that is morally and structurally untenable. Why should an official “live on crumbs” while facilitating immense wealth?
The so-called “bribes” from the private sector are often viewed as necessary “transaction costs” or an unofficial “wealth redistribution” mechanism. Society tacitly accepts this abnormality for two reasons: 1) Public salaries are ridiculously low compared to the dynamic private sector, meaning you cannot expect “five-star” public service for a “one-star” salary. 2) Everyone understands that officials with vast regulatory power will not live poorly.
The Phuc Son case is a perfect example of this internal conflict. Until public sector pay is brought closer to parity with the private sector, the private sector’s growth will be perpetually hindered by corruption, regardless of legal reform. High salaries, particularly for high-leverage roles, are not a privilege—they are a necessary institutional investment. Singapore, where the Prime Minister’s salary can exceed USD 1.6 million annually, serves as the ultimate benchmark: the state invests seriously in the quality of its leadership.
II. Strategic investment: Funding the elite state
Vietnam can and must design mechanisms to convert these “unofficial transaction costs” into formal, transparent income for the public sector. The private sector is willing to pay the cost, provided it receives professional, transparent, and fair policy execution in return.
Recommendations for revenue generation (Official transaction costs):
- Service fee enhancement: Allow government agencies (hospitals, regulatory bodies) to charge appropriate fees for specialized services.
- Performance fees: Implement management fees for critical services and allow enforcement agencies (like the police) to retain a controlled portion of administrative fines.
- Cross-sector funding: Design transparent mechanisms that allow businesses to contribute to civil service budgets (e.g., in exchange for expedited services), which must be immediately, clearly, and equitably shared among civil servants.
Upgrading the public workforce:
Once compensation is resolved, the state must reform the quality of its personnel. You cannot use an old team to achieve double-digit growth.
- Meritocratic recruitment: Institute a new hiring mechanism prioritizing competence: mandatory minimum entry criteria for English proficiency, AI application, and empathy for citizens.
- Talent mobilization: Eliminate non-essential restrictions (like age limits) for critical roles, actively recruiting retired officials and experts from the private sector.
- Mandatory private sector experience: I strongly propose a critical requirement: policymakers must have a minimum of two years of practical work experience in the private sector. This is essential for them to shed theoretical thinking and craft relevant, feasible policies that genuinely support business growth.
III. The cultural barrier: Eliminating the “Parent-to-Citizen” mindset
The most profound cultural barrier to institutional reform is the “phụ mẫu chi dân” (Parent-to-Citizen) mentality—where officials view (or are viewed by) citizens as dependent children.
An effective, transparent business environment cannot exist if entrepreneurs must remain subservient, constantly “begging” for permits and receiving decisions as “favors.” President Ho Chi Minh affirmed that government agencies are servants of the people, not their masters.
To break this mentality, paying civil servants competitive salaries is the prerequisite. A well-compensated official cannot justify acting like a “patron.” Alongside this, the administrative culture must evolve: The state should dismantle unnecessary ceremonies, lengthy honorifics, and excessive praise that reinforce the obsolete “Parent” status.
We must build a culture where the civil service is humble, professional, and service-oriented, truly embodying Ho Chi Minh’s mandate: “The Government, the people, and I will wholeheartedly assist the business community in this reconstruction… The national economy thrives when the businesses of entrepreneurs thrive.”*
Nguyễn Quốc Toàn
(Written on the occasion of Vietnam Entrepreneurs’ Day. Thanks to journalist K.L. for the feedback.)
P.S.: The accompanying photo of Uncle Ho with the business community was taken in 1946 (Source: Internet). Can you notice that the proportion of women entrepreneurs was much higher back then than it is today?
*The quote is from a historical letter written by President Ho Chi Minh to the Vietnamese General Commercial and Industrial Union (Giới Công Thương Việt Nam) on October 13, 1945, shortly after the establishment of the Democratic Republic of Vietnam.
The letter recognized the strategic importance of the business community in building a strong national economy immediately after independence. This date, October 13th, was later designated as Vietnam Entrepreneurs’ Day (Ngày Doanh nhân Việt Nam) in 2004.
