Sunday, 29/3/2020
Vietnam’s State-owned economy in the socialist-oriented market economy
30/3/2007 11:34' Send Print

The 10th National Party Congress affirmed that the State-owned economy played a leading role, and together with the collective economy, has become a firm foundation of our national economy. That the 9th National Party Congress confirmation that the socialist-oriented market economy was Vietnam’s objective had a profound significance. Firstly, it affirmed our continuous national renewal process since the 6th National Party Congress. Secondly, it identified characteristics of the market economy which involved diverse economic sectors. In this market economy, the State sector plays its political role with a socialist nature, and together with the collective sector, form the foundation of the new national economy.

In addition to this, the Congress also clearly stated, “Economic sectors operating according to law are all important components of the socialist-oriented national economy. They are equal before the law in long-term development, cooperation and healthy competition”. The Party leads the State in implementing economic policies without discrimination against forms of ownership. This is a new development in the view relating to the multi-sector economy of the 10th National Party Congress against the previous ones. To reach this target, the State apparatus should adapt its role in the following direction:

- The State shall concentrate on realising its macro functions such as orienting the national economy by effective strategies, schemes, plans, mechanisms and policies while respecting the market principles; creating a favourable environment for all stakeholders to make the most of resources; supporting the socio-economic infrastructure development; and ensuring that macro balances be sustainable and positive;

- The State influences the market through mechanisms, policies and other economic tools;

- Realising State governance by laws and minimising administrative intervention in activities of the market and businesses;

- Splitting the function of administrative governance from that of business management and eradicating the “governing body” system.

- Splitting the administrative system from non-productive agencies.

- State officials must be more knowledgeable and professional and in particular they must have a greater command of foreign languages, IT and international laws.

In general, the view of the 10th National Party Congress concerning the State-owned economy, inherited the view of Marxism-Leninism and previous Congresses, and further developed and clarified contents relating to the State-owned economy, such as the relations between it and other economic sectors, the composition of the State-owned economy, its major role and contents, its operating method in the market economy, and integration and the relationship between the economic State and the political State. These developed points generated a theoretical foundation and correct concept for Party members, particularly those who are in a leading and managing position. However, it can be seen that actual operation of the State economy will require further study for theoretical improvement.

Tran Thi Minh Chau