Book Review: From Third World to First by Lee Kuan Yew – Strategic Lessons for Vietnam’s Leap to Prosperity

 How does a nation with no natural resources, a volatile geopolitical position, and limited land become one of the richest countries in the world?

In From Third World to First, Lee Kuan Yew reveals the transformative strategies that turned Singapore into a global success story. For Vietnam—an emerging economy with immense potential—this book offers not just inspiration, but actionable strategies. However, not all lessons can be applied as-is. Let’s explore the most strategic points and how they can guide Vietnam’s journey to becoming a developed country.




1. Anti-Corruption as the Bedrock of National Development

Singapore’s Approach:
Lee Kuan Yew viewed corruption as a cancer that stifles growth, erodes trust, and diverts resources. Singapore attacked it head-on by creating the Corrupt Practices Investigation Bureau (CPIB) and implementing strict laws. Civil servants were paid competitive salaries to minimize temptation, and high-profile cases were prosecuted to set examples.

Vietnam’s Context:
Corruption remains one of Vietnam’s most significant challenges, affecting public trust and investor confidence. Despite improvements in recent years, systemic corruption still hinders the efficiency of government projects and business operations.

Strategic Recommendations for Vietnam:

  1. Institutional Reforms: Strengthen anti-corruption bodies with greater independence and enforcement power.
  2. Digitization: Implement e-governance platforms to reduce human discretion in processes like tax collection and licensing.
  3. Public Accountability: Enforce transparency in major government projects and expenditure.

Deep Dive Example:
Singapore’s Urban Redevelopment Authority (URA) operates with full transparency, ensuring land use and urban planning are publicly accessible. Vietnam’s Ministry of Construction could adopt similar models to eliminate mismanagement in urban projects.

2. Human Capital as the Core Competitive Advantage

Singapore’s Approach:
Without natural resources, Lee Kuan Yew made education and workforce development Singapore’s core strategy. English was adopted as the working language to attract foreign investment and integrate into global markets. Schools emphasized STEM (science, technology, engineering, and mathematics) education and critical thinking, preparing a workforce for high-value industries like finance, IT, and biotechnology.

Vietnam’s Context:
Vietnam has a young, energetic population, but its education system still leans on rote learning. English proficiency, while improving, remains below global standards. A mismatch between education and industry needs hinders competitiveness in high-tech sectors.

Strategic Recommendations for Vietnam:

  1. Revamp Education: Shift from rote learning to project-based and skills-oriented teaching that emphasizes problem-solving and creativity.
  2. National English Agenda: Make English proficiency a top priority in schools, especially in rural areas, to create a globally competitive workforce.
  3. Industry-Specific Training: Partner with multinational corporations to design curricula aligned with industry needs, especially in AI, clean energy, and logistics.

Deep Dive Example:
Singapore's Workforce Development Agency (WDA) offers courses tailored to industry needs. Vietnam could replicate this model by focusing on its growing tech and manufacturing sectors, ensuring workers are ready for Industry 4.0.

3. Urban Planning as a Tool for Stability and Growth

Singapore’s Approach:
Through the Housing Development Board (HDB), Singapore built affordable, high-quality housing for the majority of its population. These housing estates were ethnically integrated to prevent racial enclaves, fostering harmony. Additionally, Singapore’s transport infrastructure was meticulously planned to minimize congestion and pollution.

Vietnam’s Context:
Hanoi and Ho Chi Minh City are experiencing rapid urbanization, leading to overcrowding, traffic congestion, and rising pollution. Informal settlements and uneven development exacerbate these issues, creating disparities between urban and rural areas.

Strategic Recommendations for Vietnam:

  1. Integrated Housing Policies: Introduce affordable housing programs with clear long-term plans to prevent slums and reduce inequality.
  2. Transportation Infrastructure: Invest in public transportation systems like metro networks to address congestion in major cities.
  3. Smart Cities: Use technology to optimize urban planning, traffic management, and resource distribution.

Deep Dive Example:
Singapore’s smart city initiatives use IoT sensors to monitor traffic and optimize public transport. Vietnam’s major cities could adopt similar solutions to address their transportation crises, supported by private sector partnerships.

4. Attracting High-Value Foreign Direct Investment (FDI)

Singapore’s Approach:
Lee Kuan Yew made Singapore the go-to destination for multinational corporations by offering political stability, low taxes, and a pro-business environment. Industrial parks like Jurong Industrial Estate were built with world-class infrastructure to support manufacturing and trade.

Vietnam’s Context:
Vietnam is already a hotspot for FDI, especially in manufacturing, but most investments are concentrated in low-value sectors like textiles and basic electronics. To climb the value chain, Vietnam must target high-tech industries and R&D.

Strategic Recommendations for Vietnam:

  1. Special Economic Zones: Expand industrial parks tailored for high-tech industries, with tax breaks for R&D activities.
  2. Ease of Business: Streamline business registration, land acquisition, and regulatory processes to attract more investors.
  3. High-Skilled Workforce: Build a pipeline of engineers and researchers through public-private partnerships in education.

Deep Dive Example:
Singapore’s Changi Business Park attracts global players in IT and finance by integrating offices, research centers, and lifestyle amenities. Vietnam could develop similar hubs, such as in Da Nang or Hai Phong, focusing on green technology and IT services.

5. Diplomacy and Strategic Neutrality

Singapore’s Approach:
Lee skillfully maintained diplomatic neutrality, balancing relations with both Western powers and neighbors like China and Malaysia. This ensured Singapore's sovereignty while attracting investments from competing blocs.

Vietnam’s Context:
Vietnam occupies a strategic position in Southeast Asia, making it a key player in regional geopolitics. While balancing relationships with China and the U.S., Vietnam faces the challenge of maintaining independence without alienating powerful allies.

Strategic Recommendations for Vietnam:

  1. Diversify Trade Partners: Reduce reliance on any single market by expanding exports to Europe, Japan, and South Asia.
  2. Participate in Global Agreements: Strengthen involvement in trade agreements like CPTPP and RCEP to boost integration.
  3. Defense Diplomacy: Build partnerships in defense while maintaining a neutral stance to avoid overdependence on any bloc.

Deep Dive Example:
Singapore’s role in ASEAN diplomacy is a model for Vietnam to emulate, leveraging its regional position to mediate conflicts and boost economic cooperation.

6. Balancing Economic Growth with Social Equity

Singapore’s Approach:
Lee ensured that economic growth benefited all citizens, not just the elite. Public housing, healthcare access, and racial harmony policies were designed to reduce inequality and promote inclusivity.

Vietnam’s Context:
While Vietnam’s economy has grown, income inequality is increasing, particularly between urban and rural areas. Ethnic minorities often lag behind in access to education and healthcare.

Strategic Recommendations for Vietnam:

  1. Rural Development: Invest in rural infrastructure, including roads, schools, and healthcare facilities, to reduce urban-rural disparities.
  2. Social Programs: Introduce targeted subsidies or grants for underprivileged communities.
  3. Ethnic Inclusion: Promote policies that empower ethnic minorities through education and economic opportunities.

Deep Dive Example:
Singapore’s ethnic integration policies in housing could be adapted to Vietnam by mixing socio-economic groups in public housing projects to promote unity.

Conclusion: What Vietnam Can Learn from Singapore

Lee Kuan Yew’s From Third World to First is not just a story of Singapore’s transformation—it’s a guide to nation-building through vision, discipline, and adaptability. For Vietnam, the lessons are clear:

  • Eliminate corruption to build trust and efficiency.
  • Invest in education and human capital as the foundation of progress.
  • Plan cities for sustainability and livability, not just growth.
  • Target high-value industries to move up the economic ladder.
  • Balance growth with equity to ensure inclusive development.

Vietnam’s potential far exceeds Singapore’s initial conditions. By adopting and adapting these strategic lessons, Vietnam can accelerate its rise to becoming a developed nation.

What’s your take on Vietnam’s development path? Share your thoughts below!


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