Why Kim Jong Un Is Looking to Vietnam for Lessons

North Korea need not look far for lessons on how to modernize its dilapidated economy. Neighbors China and South Korea have both transformed from agrarian backwaters into global manufacturing powerhouses in the space of several decades. Yet Kim Jong Un’s regime is also seeking counsel from another country thousands of kilometers away, one that also shares an acrimonious history with the U.S. -- Vietnam. Kim, who’s reported to have discussed Vietnam-style reform during a meeting with his South Korean counterpart, will get to see the Southeast Asian nation up close this month, when he meets with President Donald Trump in the capital Hanoi.

It offers a road map not just for upgrading an economy but also recuperating after years of isolation and, crucially, keeping a grip on power. A decade or so after the Vietnam War ended in 1975, the ruling Communist Party introduced the so-called “doi moi” reforms with a view to nurturing a “socialist-oriented market economy” and lifting its people out of poverty. It encouraged foreign investment, reduced subsidies for state-owned enterprises and allowed farmers to sell surplus crops. It’s come a long way. Vietnam now has more than a dozen free trade agreements and an economy that’s expanded at an average clip of 6.6 percent since 2000 -- boosting annual incomes to almost $2,600 from about $400. While the Vietnamese government brooks no dissent, it has toned down aspects of an authoritarian regime -- from nationalism and ideology to police powers -- partly to allow the economy to flourish.