The Irony That COMMUNIST Vietnam, Not DEMOCRATIC Philippines, Established the Government-Owned Foreign Trade University

Đoàn Thanh niên Trường Đại học Ngoại thương Facebook page

Tomorrow is Vietnam's Independence Day. I planned to publish my article on Vietnam's Doi Moi project today. However, I felt the urgency to publish it because some people on Facebook gossip that Vietnam is supposedly protectionist. While looking at the pages and using Google Translate--I found pictures of Vietnam's Foreign Trade University (FTU)--a university located in Hanoi, Northern Vietnam. Fortunately, there was an English page since I don't speak Vietnamese. 

The idea that Vietnam doesn't accept FDI is silly. Those fools at the now-defunct Philippine Anti-Fascist League (and others) believe that Vietnam's only "FDI" is selling its products worldwide. However, this is also found in the FTU's introduction:

Promoting international cooperation has always been recognized as an important measure for the development of the FTU in an increasingly globalized environment. Towards the development strategy of Foreign Trade University by 2020 and vision to 2030, in recent years, FTU has given priority to build up global network with a large number of universities and organizations all over the world.

People who say that Vietnam is protectionist need to look at the history of FTU. What may amaze some is that FTU is actually a public school. 

Foreign Trade University (FTU) is a public university established in 1960, located in Hanoi, Vietnam. The university also has campuses in Ho Chi Minh City and Quang Ninh.

FTU is recognized as one of the most prestigious universities in Vietnam and has gained enormous achievements in providing talented graduates to the Vietnamese economy.

FTU offers a wide range of majors and specializations in economics, business, business administration, finance and banking and foreign languages. It offers both undergraduate and graduate programs for both local and foreign students. These courses are taught in Vietnamese, English, Japanese and French.

Some Filipinos may foolishly say, "Why are FDIs choosing Vietnam over the Philippines? The Philippines is a democracy while Vietnam is a Communist dictatorship. Surely, the Philippines is the better choice." However, what I want to stress is that the Philippines' FDI equity restrictions are (1) excessive (such as letting foreigners only own 40% or lower) and (2) enshrined in the constitution. Vietnam now has the 2013 Constitution. Instead, Vietnam's economic restrictions are through legislation instead of enshrined in the constitution. A weakness of the 1987 Constitution of the Philippines is Article XII. The problem is with unreasonable restrictions including the 60-40 arrangement, which is overpriced rent (read here). Why would MNCs want to invest in the Philippines if they can only keep 40% of their net profits after taxes?

General Secretary To Lam's gold steak controversy in 2021 isn't a major issue (read here). Seeing Communist banners fly left and right in Vietnam isn't a major issue. Instead, Vietnam focused on establishing Doi Moi. The late Nguyen Duy Cong aka Do Muoi, a former General Secretary of the Communist Party of Vietnam (CPV), met with the late Lee Kua Yew, hoping to establish a better Vietnam. In the 1980s, Do Muoi established foreign trade relations. Meanwhile, the Philippines' hurriedly-written 1987 Constitution still placed Article XII--thus continuing the Filipino First Policy of Carlos P. Garica and Ferdinand E. Marcos Sr. Not surprisingly, Garcia and Marcos are now buried side-by-side at the Libingan Ng Mga Bayani (Graveyard of the Heroes). 

It should be ironic that Garcia's reign was in 1957-1961. Fortunately, Garcia lost the re-election bid but the damage of his Filipino First Policy was done. The first Marcos Administration (a term I'll use to prevent confusion since his son Ferdinand R. Marcos Jr. is now the current Philippine president) was also a protectionist regime. However, Ho Chi Minh (who died before Vietnam's reunification) created his thoughts on international integration. 

After independence was gained in 1946, in his letter to the UN Secretary-General, President Ho Chi Minh declared that Viet Nam was ready to follow an open-door policy and cooperate in all areas with democratic countries. Accordingly, he proposed a number of solutions: Viet Nam created favorable conditions to attract foreign investment in all its industries; expanded ports, airports and roads for international trade and transit; participated in all international economic cooperation organizations; signed special security agreements and related treaties... During the anti-French colonialist war of resistance, Ho Chi Minh clearly stated his goodwill: “We very much welcome French capitalists and those from other countries, who cooperate honestly with us", "We will invite experts from France, the US, Russia or China, to come here to help us in the cause of national construction".

Somehow, the difference between Ho and Garcia was this. Garcia's Filipino First Policy is clear. These are Garcia's words on January 25, 1960, the same year that the FTU would be founded:

The "Filipino First" policy of this administration re­ceived a resounding popular indorsement in the last election. Politically we became independent since 1946, but econom­ically we are still semi-colonial. This is especially true in our foreign trade. This policy is therefore designed to regain economic independence. It is a national effort to the end that Filipinos obtain major and dominant participa­tion in their own national economy. This we will achieve with malice towards none and with fairness to all. We will accomplish this with full understanding of our inter­national obligations towards our friends of the Free World. We will carry this out within the framework of our special relations with the United States to whose citizens we granted until 1974, by Constitutional provision, equal rights as Filipinos in the exploitation of our natural resources and public utilities, and to whom we also granted trading parity rights under the Laurel-Langley Agreement. Under this policy we will welcome friendly and understanding foreign capital willing to collaborate with us in the exploitation of our vast natural resources preferably on joint venture basis.

Instead, Garcia sought Filipinos would be the major and dominant participants of the national economy. In short, this would be the basis for excessive equity restrictions. However, the Filipino First Policy caused the Philippines to fail. Should people choose something Filipino for the sake of choosing Filipino? Should a person eat rotten Filipino food when they can eat fresh foreign food? Of course, I'd eat fresh Filipino food over rotten foreign food. My reasoning is not because the fresh food is Filipino but because it's fresh. Rotten food is rotten food--whether it'd be Filipino or foreign. It's been a series of disasters ever since, with the one solid fact that the Filipino First Policy caused the Philippines to fail. Even worse, these idiots focus on borrowing from other countries instead of allowing foreigners to do business in the Philippines (where there's taxable income to collect). Isn't it ironic to discourage MNCs from investing while borrowing foreign loans? Some people confuse foreign loans with FDI (read here). 

After getting my MBA, I had a false sense of security (again). Never mind that I had a false sense of security during my MBA days. I got conned out of money during my MBA days. Even worse, I wasn't the only MBA screw-up. There were MBA students who got hit by one financial scam after the other. I didn't even know what the Cash to Go program was. It can raise the eyebrows and make one ask, "I thought you were a Master's Degree student? Aren't you taught that?" I could defensively reply that I wasn't taught credit card management, no descriptive course for that certain matter, etc. The response was, "It's official, the Philippine education system is that bad!" The number of MBA screw-ups makes you wonder, "What's wrong with the Philippine education system?" 

The Philippines could've established its own public university specializing in world trade. Instead, the Filipino First Policy prevented such thinking. Please, the world doesn't revolve around Filipinos or the Philippines. The Philippines, as a democratic country, could've been a shining example if it was more FDI-friendly and established its own version of the FTU. Instead, it should be ironic that a Communist country established the FTU, exceeded the Philippines in FDI. Why should a democratic country brag about being a democracy, all the while believing in Pinoy Pride Economics? Pinoy Pride Economics will not do much in the long run. Vietnam swallowed its pride and look where it is now. The Philippines needs to swallow its pride to rise above the Rising Tiger status. It's because without the right economic polices--it'll become a Paper Tiger instead!