The socialist-oriented market economy is a cornerstone of democracy

08/04/2017

Up to now, there are 66 countries which recognized Vietnam as a market economy status. Among these countries are big economies such as Germany, Japan, China, Australia, South Korea, India, Israel, Singapore, etc and upcoming recognitions of the U.S. and European countries. This proves that international community has admitted Vietnam’s achievements not only on economy but also on democracy and social developments. That affirms the important role of the socialist-oriented market economy in protecting and promoting global values of human rights and democracy.
The Vietnamese Party, State and people have persistently built and developed the socialist-oriented market economy over the past years. However, in reality, especially in the difficult periods of the national economy, there has been concern about the chosen path. Thus, continue to reach consensus and clarify awareness on the socialist-oriented market economy are necessary.
The socialist-oriented market economy is a product of the Đổi mới economic reforms (Renewal), which led to the replacement of the centrally-planned economy with a market-based mixed economy based on state-owned industry. These reforms were undertaken to allow Vietnam to integrate with the global market economy.
Let start with 30 years ago. At that point in time, we launched what is called “Comprehensive Renewal,” with a focus on economic renewal. Before the launch of renewal in 1986, the country was in really bad shape. Vietnam just came out of a succession of wars. The country was totally devastated, not just economically, but also socially, the whole social infrastructure. Internationally, we were isolated. Domestically, we were destroyed. At that time, the country’s leadership – the party leadership of the Sixth National Congress – decided to launch a renewal of the whole country. First of all is a economic renewal. When launching renewal economically, the country allowed gradually for the private sector – first domestic, and increasingly afterwards the foreign private sector – to get involved in the economic restoration and development of the country. Granting permission for the private sector to take part in the economic development of the country was a very important decision.
That is part of what you call market economy – private sector participation in the economy. The market economy is the product of the history of human social development and the achievement of human civilization. Karl Max affirmed that market economy was an essential stage of historical development which any economy has to pass through to reach the stage of higher development and socialism and communism are the stages of development higher than capitalism in the process of human development. Socialism and communism will only arrive when production forces highly develop. To reach this level the market economy must maximally grow and become popular in socio-economic life; only by developing the market economy can premise and conditions for achieving socialism be created.
Noticeably, there are several market economy models in the world, namely ‘the social market economy” in the Federal Republic of Germany, the “allied market economy” in Japan, the “welfare state market economy” in the Northern European countries and “the socialist market economy” in China. Reality shows that the market economy can be built in countries of different socio-economic institutions with specific module relevant to conditions and concrete objectives of each country. Nevertheless, these models have been built and operated according to fundamental rules of modern market economy and international integration with typical characteristics of the market economy (recognition of private ownership, freedom of business and competitiveness, promotion of effectiveness of the market and market mechanism and the State regulates macro-economy).
The socialist orientation refers to the Communist Party’s leadership. So, the state sector has remained the leading sector of the economy to avoid any deviation economically, ideologically, or politically from the socialist orientation. That’s why it called socialist orientation. But by socialist orientation, the country is not yet a socialist country. It’s only the future. It’s only the orientation of the economy. So that’s why now it’s just called socialist-oriented economy.
The socialist-oriented market economy in Vietnam is a type of organization of the economy based on not only the principles and rules of a market economy but also the principles and charateristics of socialism shown in three aspects: ownership, organization of management and distribution. It is an organized market economy led by the Party and administered by the socialist state, which is socially oriented to minimize defects of the market in order to best serve the interests of the majority of people and the sustainable development of the country.
Obviously, in Vietnam’s development policy, the socialist orientation concept can be realistic only when it “contains” sustainable development for social progress, free and comprehensive development of each individual. Thus, the market economy and socialist orientation do not contradict but are unified. The approach to the modern market economy and international integration of Vietnam’s modern market economy model should embrace standards and contents of the modern market economy and ensure distinctive and unique socialist-oriented elements of Vietnam.
New awareness on the socialist-oriented market economy is identified in the documents of the 12th Party Congress. It is “the economy operates fully and synchronously following the law of the market economy while ensuring socialist orientation appropriate to each stage of national development. It is the modern market economy in international integration under the management of the rule of law socialist State led by the Communist Party of Vietnam to achieve the objectives of “rich people, strong country, democracy, equity and civilization”./.
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All comments [ 11 ]


John Smith 8/4/17 17:23

The economic reforms aimed to restructure the Vietnamese economy away from Soviet-type central planning and towards a mixed economy intended to be a transitional phase in the development of a socialist economy.

Gentle Moon 8/4/17 17:28

The socialist-oriented market economy is a multi-sectoral commodity economy regulated by the market, consisting of a mixture of private, collective and state ownership of the means of production. However, the state sector and collectively-owned enterprises form the backbone of the economy.

LawrenceSamuels 8/4/17 17:30

It's a kind of Vietnam-style market economy!

Jane smartnic 8/4/17 17:39

Building on the understanding of development rule of the time and generalization, the Vietnamese Party learnt lessons of developing the market economy of the world.

yobro yobro 8/4/17 17:40

This line demonstrates the Party thought and perception on conformity of production relations with the level of production force in the transitional period to socialism in Vietnam.

Love Peace 8/4/17 17:42

Socialist Party, soicalist economy and towards socialist democracy! Viva Vietnam!

MaskOf Zero 8/4/17 17:43

It is possible to say that the most important content in market economy socialist orientation in Vietnam is sustainable development.

Only Solidar 8/4/17 17:45

The EU has granted Vietnam the "Ad hoc Market Economy Regime" for 2005 in recognition of the country's major progress in economic development and global integration, soon EU will recognize Vietnam's market economy status.

Pack Cassiopian 8/4/17 17:48

Vietnam can now completely understand and apply objective rules to the economy in order to build lasting institutions and ensure fast and sustainable development in the interests of the people and the nation as a whole.

Deck Hero14 8/4/17 17:52

Each independent nation has its rights to choose its political system, economic mechanism and democracy.

PRIME Institute 15/5/17 20:37

Very Nice article ..... For more Detail about market economy join Prime institute

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