Following the footsteps of Vietnam

People who help transform society and specific sectors of society are usually classified as thinkers (the theorists) and doers (the implementors).

- BERNARDO M. VILLEGAS

Those of us who joined the agribusiness road show to Vietnam on June 24 to 27 were fortunate to have as one of our speakers someone who is both a thinker and very much a doer. Christian Eyde Moeller is someone who walks his talks. He is a professional who not only meticulously prepares a strategic plan and a playbook but also shows the way to those who work for him the actual steps needed to reach his goals.

In his presentation on Vietnam’s agricultural performance, he first outlined the “Four Pillars of Vietnam’s Success.”

The first pillar had to do with bold policy reforms implemented by the Socialist government from 1988 to 1997: in 1988, Resolution 101 involving land-use rights; in 1993, the Land Transfer Law that enabled transfers of land; and in 1997, the rice export quota was removed.

The second pillar was the encouragement of private investments within a market economy. This resulted in $3.31 billion in foreign direct investments (FDI) in agriculture in 1990. In 2022, there was an additional $68 million in FDI in agriculture, with Bayer and the TH group in joint ventures.

The third pillar was the heavy investments in countryside infrastructure — some 595,000 kilometers of roads, coupled with universal electrification which brought electricity costs to $0.073/kilowatt-hour (kWh) compared to $0.15/kWh in the Philippines.

The fourth pillar was the focus on worker productivity that reached $6,500 per worker, 70% mechanization, and an average monthly wage of $150. Today the average monthly wage in Vietnam is $697 compared to $790 in the Philippines.