(Photo: Hai Phong Star School. Source: EQuest)
Recently, we have been talking a lot about a “Developmental Government.” For businesses, this is demonstrated through the way the government accompanies us in specific, concrete matters. I would like to share EQuest Group’s experience in Hai Phong—a place that left us with the strongest impression regarding the developmental spirit.
1. Are You Guys Really Doing Education, and Starting Immediately?
On our first day coming to Hai Phong, the then Party Secretary—Mr. Tran Luu Quang—asked us words to the effect of: “Are you sure you are doing education and doing it right away? Or are you just applying for land to hold onto it for real estate development?”
We immediately understood the seriousness of the city’s leadership. I promised and affirmed to the Secretary that we were investing in education, not real estate in disguise; and that we would start immediately without delay or dragging our feet.
The very next week, the Secretary convened a meeting with all key city leaders, including departments, boards, and sectors. Without beating around the bush, he went straight to the point: what Hai Phong needed and wanted, and asked us what we had and what we could do. When we began our presentation with what seemed like a lengthy greeting, he interrupted and asked: “In short, what do you need, how about the land, and what support do you require? Both the City Chairman and I are here. Let’s get straight to the point.”
After that, the Secretary assigned city leaders to introduce investment opportunities along with locations. Later, even after transitioning to another position, he always checked in on our progress to see if we needed additional support to succeed.
To us, that was a very “developmental” way of working: clear goals, clear actions, and ultimate accountability to the end.
2. Implementation Experience—The Fastest Ever
The Hai Phong government truly worked in the spirit of “matching words with actions.” Once the land procedures were completed, we broke ground immediately, and any arising obstacles were directly resolved or advised on by leaders of the departments and the City.
Thanks to this, the construction and licensing process was carried out very quickly. It must be said that the Hai Phong government is the fastest-acting and most decisive government I have ever seen.
There was a huge difference: we never had to wait around to request a meeting with city leadership. This would be “hard to believe” in other places.
As a result, within just 1 year, we completed 3 school projects: Alpha Hai Phong, Hai Phong Star, and Newton Hai Duong (in just 6 months once the partner handed over the school).
3. Practical Difficulties
During the implementation of these projects, we encountered many difficulties, mainly due to the rapidly changing global context, which Vietnam could not escape. Our investors and financial partners also had to consider tightening capital flows due to so many elements of uncertainty. At the same time, the prices of construction materials skyrocketed over recent years. Our project execution was significantly impacted.
Unfortunately, after so many efforts to overcome difficulties, just as the school finished construction, a major storm hit. Trees, perimeter walls, and roofs were severely damaged, resulting in huge losses. As for the access road to the school, the urban area developer ran out of funds and could not continue. We had to grit our teeth and spend nearly ten billion VND more to repair and complete it in time for the schedule. The road was barely finished when storm flooding struck again, costing billions more to rebuild from scratch.
Yet amid all those difficulties, there was one thing we always recognized: there were no obstacles whatsoever coming from administrative procedures, policies, or the Hai Phong government. In the context of doing projects in Vietnam, this is truly rare.
4. Working with New-Term Leadership and Post-Merger
In business in Vietnam, when investing in a locality, the biggest fear is “new official, new policy.”
The tenure of government leadership is 5 years, but businesses must make investment and business plans for 10–20 years. Many businesses have found themselves at a loss on how to manage because local policy or support changed.
To put it in the Southern way, they “are no longer loved by the new brothers and sisters.”
This did not happen in Hai Phong. The merger and leadership change did not slow our work down. We did not have to “listen around” or “wait and see” what the new leadership or new policy would be like.
Upon hearing our first report, the new Party Secretary, Mr. Le Tien Chau, immediately gave strong support. Having been a leader in the education sector himself, he instructed us to contact him immediately whenever there was anything that needed resolving. During the period of applying for a license to establish a university branch in Hai Phong, an opinion from the Standing Committee of the City Party Committee was required; to meet the time frame, I contacted him, and just a few days later, the matter was resolved smoothly.
When Hai Phong merged with Hai Duong, we reported to the new City Chairman, Mr. Le Ngoc Châu. Although he had just taken office and office arrangements were not yet stable, upon learning that we were working in education, he arranged to meet us in his very first working week at the new location.
When we reported, he listened very carefully, offered many orientations, and shared a statement that we still remember to this day. Words to the effect of: “You guys doing investment and business, especially in education, must know how to cut your coat according to your cloth; don’t be overly romantic, or it’s easy to break your back.”
This was truly heartfelt advice, because in the course of business, we have witnessed many enterprises run into trouble from being overly flighty, superficial, or holding onto pride to “persist blindly.” Mr. Le Ngoc Chau’s advice was steeped in practical experience, resonating deeply with us.
5. A Culture of Openness at Cat Bi Port Authority
There is a story that certainly must be retold to clearly illustrate the “Hai Phong character.” Once at Cat Bi Airport, an incident occurred regarding airport security’s conduct that we disagreed with. I texted feedback to the Hai Phong Port Authority. Upon landing, I received a text asking to make a call to discuss. The caller was Mr. Xuan Thien, who was in charge of the Port Authority. He spoke very politely: “We have reviewed the camera footage carefully, and this time it was clearly our fault. I apologize to you. I hope you understand. Next time you come to Hai Phong, if convenient, let’s grab coffee together.”
I was very surprised and touched. That conduct was truly civilized, displaying a culture of openness rather than bureaucratic posturing or blame-shifting, further confirming the Hai Phong character we had witnessed while executing projects.
(The refinement and professionalism of the Hai Phong Port Authority stood out even more sharply when we also provided feedback to the Port Authority in another larger city regarding a far more important matter, yet they remained silent and have still not responded after more than a year).
6. Investment Results in Hai Phong
The (new) Hai Phong is the city where we have invested the most in education in recent times.
Within 2 years, we opened 3 high-quality, beautiful, and quite solid private K-12 schools (I only dare say solid because we still have much to self-improve). Soon, together with an international partner, we will continue executing another project in this city.
Our major partners, upon hearing that we could build and open a school within 1 year in Hai Phong, were deeply impressed. My Australian friend, who manages a multi-billion-dollar fund, said: “In my country, it would probably take 2 years just for the licensing phase, and there is certainly no such thing as working 3 shifts a day.”
Meanwhile, my partner, an American billionaire specializing in higher education investments, said: “If I hadn’t come to Vietnam, I wouldn’t have imagined how you guys would develop. After visiting and meeting the Hai Phong government, I realized you guys are much more dynamic and capitalistic than we are.”
The initial success in Hai Phong has significantly boosted the confidence of our investors and financial partners.
7. So, What Is a Developmental Government?
Changing policies and legal frameworks sometimes requires a fairly long time. But a working culture in a “developmental spirit” can manifest very quickly if there is determination from the highest level.
Hai Phong is a prime example:
a) the government (here) possesses consistent, long-term policy stability, not thinking in terms of official terms;
b) the government truly accompanies businesses, joining them in thinking of ways to overcome difficulties;
c) it resolves actionable matters immediately without unnecessary delay;
d) the government understands business hardships to offer processing support instead of creating additional burdens; and
e) it dares to admit faults to correct them, without a “frightening silence” driven by “ego” or bureaucratic arrogance.
Our sincere thanks to the Government of Hai Phong City. If this “Hai Phong character” spreads nationwide, we believe that an economic growth rate of 10–15% per year is entirely achievable.
Nguyen Quoc Toan
