Viet Nam Human Rights
»
Analysis-Comment
»
Perfecting Vietnam’s market economy in accordance with common standards of a modern and internationally integrated market economy
Perfecting Vietnam’s market economy in accordance with common standards of a modern and internationally integrated market economy
7/10/16
The 12th National
Congress of the Party stressed: “To further unify awareness of a socialist
oriented market economy” and “By 2020, strive to basically perfect the system
of institutions of a socialist oriented market economy in accordance with
popular standards of a modern and internationally integrated market economy”.
This is absolutely sound and reasonable because market economy is a product of
human civilization. Throughout the world, market economy has been built in
various forms in different countries with different political-social
institutions, and in accordance with each particular circumstance and goals of
each nation. These models are formed and operated in accordance with basic
rules of a modern and internationally integrated market economy. Nevertheless,
there still exist different concepts of such model.
From the reality of
countries with developed market economies, such as those of the Organization
for Economic Cooperation and Development (OECD), the basic criteria of a modern
and internationally integrated market economy can be defined as:
An economy with different
forms of ownership in which shareholding predominates. Small and medium sized
joint stock companies take advantages in comparison with other kinds of
enterprises. Because of the utilities and legal regulations, these companies
account for a large proportion in the total number of enterprises (98% and 90%
in Japan and America respectively).
A modern market economy
is a highly marketized one. “Marketization” not only means that market
mechanism functions more effectively than other existing economic mechanisms
but it also infers a full market economy which creates a healthy, equal,
transparent and favorable competing environment for all forms of enterprises;
creates favorable conditions, minimizes priorities and privileges, etc.
A modern market economy
depends its growth on modern science and technology; develops knowledge-based
economy and highly-qualified human resource. In this economy, high tech
products hold a large proportion. It has a modern economic structure with
decreased proportion of agriculture and industry and increased proportion of
services. Services in the OECD countries, HongKong, the U.S, and Japan account
for 70%, 90%, 80% and 74% of GDP of these countries, respectively. Finance and
banking (including insurance) and business services are becoming two
spearheads, bringing about most of added value for the service industry in
general and a driving force for economic growth.
The roles of states are
different in a market economy. In the current developed market economies, to a
more or less extent, state intervention is necessary, depending on the economic
theory that it applies. Whatever the theories, states must respect and adhere
to the rules of a market economy.
A modern market economy
is an “open” one with the continuity of market economy institutions
towards globalization and regionalization and the formation of bilateral and
multilateral free trade agreements with the aim to strengthen the state’s
regulatory role in the economy not only in a single nation limit but at a
transnational level as well.
The approach to a modern
and internationally integrated market economy of Vietnam’s market economy must
include the typical features and contents of a modern market economy while maintaining
the unique characteristics of “Vietnam” style (socialist oriented).
Socialist orientation and
market economy are not just a combination of two factors. This is a new model
of market economy aiming to overcome the shortcomings and negative features of
the capital market economy while inheriting and promoting its positive points.
The internal socialist oriented factors in the process of building a modern and
internationally integrated market economy include: (i) it has advanced
relations of production fitting the development of productive forces; there are
different forms of ownership and different sectors in the economy in which
state economy holds the dominant role; (ii) upholding people’s mastership in
socio-economic development; (iii) ensuring social progress and equality
associated with economic development; (iv) under the state governance and the
leadership of the CPV. For this reasons, during the operation of the socialist
oriented market economy in light of the 12th National Party
Congress, it is necessary to grasp and fulfill the following contents:
“Vietnam’s socialist
oriented market economy has advanced relations of production which are relevant
to the development of productive forces”.
Vietnam’s modern market
economy must be operated by the law-governed socialist state. Therefore,
building a law-governed socialist state is an objective trend. A law-governed
state exists and develops basing on the movements of socio-economic relations
in a market economy, not from the subjective political will. This special
political institution does not result in any contradictions between
superstructure and base because the goal of developing a modern market economy
is relevant to the target of building socialism for “rich people, civilized,
equal, and democratic country”. Moreover, this institution is also a decisive
factor to the needed stability for development; overcoming the shortcomings of
a purely free market economy; and ensuring a sustainable development,
maintaining political stability, social progress and equality, enhancing the
role and effectiveness of the CPV’s leadership.
The CPV leads and develop
market economy for the goal of rich people, civilized, equal, democratic and
strong country. The Party’s leadership is a prerequisite for realizing socialist
orientation in developing modern and internationally integrated market economy
of our country.
Grasping and successfully
implementing the above mentioned contents are basic conditions for perfecting
Vietnam’s market economy institution in accordance with common standards of a
modern and internationally integrated market economy.
Popular Posts
-
Religion is a part of the spiritual life in society, this phenomenon of the superstructure has been strongly changed with economic - social... -
Vietnam has just done well for the second cycle of Universal Periodical Review (UPR) in Geneva, Switzerland. So, what’s the UPR? an... -
Thai people in Shutdown Bangkok protests Not until this crisis, we have realized the ne... -
Representatives from foreign countries congratulate Viet Nam on its election to the Human Rights Council for the first time on November ... -
A street flowers vendor in Hanoi Another new spring has come to Vietnam, bring... -
If nothing changes, there will be a preferential credit program with hundreds of thousands billion of capital for agriculture and r... -
Recently, several anti-governmental individuals have established series of illegal groups and organizations in the name of civil soci... -
Radio Free Asia (RFA) is a private, nonprofit international broadcasting agency of the United States government that broadcasts and...
All comments [ 11 ]
Three strategic breakthroughs are a precondition to implementing this philosophy, with the accomplishment of institutions necessary for a socialist-oriented market economy the key breakthrough that directly affects the process of shifting the model of growth.
After more than 20 years of pursuing the policy of doi moi (renewal), our country has recorded important achievements in building the institutions of a socialist-oriented market economy.
Vietnam has been able to mobilise various resources for development, ensuring high growth, creating jobs and improving people's quality of life.
However, your market institutions remain uncompatible with elements of the market economy yet being fully formed. Many difficulties are still found in the property market.
A market economy includes various institutions operating in an integrated manner. Just one that does not operate completely will prevent the functioning of others and block the entire system.
It is necessary to take the features of modern market institutions as the standards for your own institutions.
Vietnam needs to have integrated development of all elements of the market economy so that they are fully formed and functioning in harmony, one supporting the other in a perfect whole. This is the very condition for the economy to function smoothly, allowing all resources to move freely and be allocated rationally and effectively.
A modern market economy requires the establishment of an equal competitive environment for all players on the market. Competition is a feature of a market economy and a criterion to measure the market nature of an economy.
The Vietnamese Government must review and evaluate the competitiveness of each sector to eliminate the discrimination experienced among enterprises of different economic sectors.
it is necessary to highlight transparency and accountability in the implementation of management policies and development projects as well as in the operation of businesses.
Very Nice article ..... For more Detail about market economy join Prime institute market economy
Your comments