Vietnam-Style Reform Could Bring Major Changes to North Korea, Reports Reuters

By James Pearson

HANOI – In a tranquil park setting between a rusting Soviet fighter jet and the former East German embassy, a solitary statue of Lenin stands as a reminder of the revolutionary’s influence on Communist-ruled Vietnam.

Erected in 1986, the statue coincided with Vietnam’s significant "doi moi" reforms, which catalyzed the nation’s transformation from a war-torn agrarian economy into one of Asia’s fastest-growing economies.

Presently, Hanoi’s "Lenin Park" is not frequented by locals paying tribute to their Communist past, but rather by a vibrant group of skateboarders inspired by their Western counterparts.

As Vietnam gears up to host North Korean leader Kim Jong Un and U.S. President Donald Trump’s summit, its model of reform is being highlighted as a potential path for the impoverished and isolated North Korea.

Since the inception of its reforms, Vietnam has experienced a nearly five-fold increase in per capita GDP, all while maintaining the ruling Communist Party’s firm grip on power despite its intolerance of dissent.

However, this success has come alongside political reforms and a level of individual freedoms that would require significant changes in North Korea, where Kim Jong Un wields almost total control and is idolized by state propaganda as a living deity.

Cao Si Kiem, the former governor of Vietnam’s state bank, pointed out, "When all the power is in the hand of a single person, decisions are prone to mistakes. We had to accept power dilution,” referring to the era of change in Vietnam.

During the Vietnam War, the health of revolutionary leader Ho Chi Minh deteriorated, leading to his right-hand man, Le Duan, taking over as a strongman leader until his death in 1986. His passing marked the end of the "strongman era" in Vietnam, paving the way for both economic and political reforms.

Le Hong Hiep, a fellow at an institute in Singapore, noted, "Le Duan was a staunch communist, an old guard of the Leninist system. After his demise, no single politician could command such control; the politburo became the primary decision-making body, operating on a consensus basis."

In stark contrast, North Korea has only known strongman rule. Kim Jong Un’s authority is derived from his lineage; he is seen as the successor of both his father, Kim Jong Il, and his grandfather, Kim Il Sung. They represent the "bloodline of Mount Paektu," which is steeped in legend and historical significance.

North Korea’s self-sufficiency ideology, known as "Juche," officially replaced Marxism-Leninism in 1972, gradually eliminating references to the latter. The ruling Kims are deified, and even the value of the Korean People’s Won was pegged at an arbitrary rate until 2001 to honor Kim Jong Il’s birthday.

Despite a reputation for brutal repression of dissent, Kim Jong Un has initiated some economic reforms, allowing markets to develop, expanding Special Economic Zones, and encouraging factories to diversify their offerings to meet consumer demands.

According to a Korea expert from Stanford University, "In the North Korean context, this is significant—much more advanced than under previous leaders." By 2016, North Korea achieved its highest growth rate in 17 years, though growth contracted the following year due to international sanctions prompted by its weapons programs.

While North Korea is opening its markets more than ever, key limitations remain. Experts cite a need for clearer property ownership laws and a reduction in surveillance of foreign visitors to attract outside investment.

Thus far, the economic changes promoted by Kim have been framed by state propaganda as initiatives aimed at improving living standards, yet they have not been accompanied by political liberalization. North Korea remains officially tax-free, and while many citizens depend on markets for sustenance, the regime continues to claim the existence of a public distribution system.

In contrast, Vietnam moved away from such rationing during its reform era, with its economy now so open that memories of the "subsidy era" are often turned into retro themes in cafes and restaurants.

A Vietnamese student at a popular cafe, adorned with Communist-era motifs, remarked, "It feels more nostalgic than the modern coffee shops," as she enjoyed her drink.

While the road to reform in Vietnam has been paved with challenges—such as the public destruction of foreign media in 1996 during a crackdown on "social evils"—today, the statue of Lenin observes skateboarders with a blend of bemusement and indifference.

"It’s fascinating," said one skateboarder, reflecting on the blend of tradition and modernity in the park. "This is a Western sport, and doing it right in front of the Lenin statue is something special."