Vietnam: The Next ASEAN Economic Giant? A Lesson from Singapore’s Land Lease Model

Across Southeast Asia, economic watchers are paying close attention to Vietnam. The country’s rapid growth and expanding manufacturing sector have already attracted global interest. But there is a deeper reason why Vietnam could soon join the region’s economic giants following Singapore’s example.

Unlike many countries where land can be privately bought and sold, Vietnam uses a system where all land is leased from the state. This important difference could become the key to a sustainable and inclusive growth model if used properly.

Singapore’s economic success is well known. One main reason is its unique approach to land. The government owns all land and leases it to businesses and residents. This creates a steady source of revenue through land rent. This income allows Singapore to keep taxes on labor and business low. As a result, the country remains competitive while investing heavily in infrastructure, education, and innovation.

Vietnam, with its state-controlled land lease system, has the chance to follow this path. Instead of relying mainly on taxing labor and capital, the government could focus on collecting land rent. This would reduce the tax burden on workers and businesses that often slows down economic growth.

Capturing land rent also encourages better land use and limits speculation. When the government collects the value created by society in the form of land rent, it promotes productive investment and reduces inequality.

Vietnam’s challenge is to create policies that collect land rent efficiently and transparently. If it succeeds, it can fund important public services, infrastructure, and social programs without hurting economic activity. This balance could make Vietnam not only the manufacturing center of ASEAN but also a model for sustainable growth.

In summary, Vietnam’s leasehold land system is more than just a legal rule. It is a powerful economic tool. If Vietnam follows Singapore’s lead by using land rent as a main source of revenue and keeps taxes on labor low, it could become the next ASEAN economic powerhouse. The country would grow inclusively and sustainably by tapping the true wealth under its feet.