The role of private economy in the socialist-oriented market economy in Vietnam

Abstract

The author discloses, through the prism of Vietnamese sources, the role of the private sector in the Vietnamese economy, showing that it has changed fundamentally during the 35 years of Đổi Mới implementation; analyzes its place in the structure of the Vietnamese economy and its evolution, as well as its position in comparison with two other sectors, namely the public sector and sector with the participation of foreign capital. The article, based on official Vietnamese sources, reflects the CPV's view of the private sector and the Communist Party's intention to use it in promoting the country's prosperity. At the same time, the author introduces the idea that large Vietnamese private groups are indebted to political protection by the leadership of the country, emphasizes the existence of a cronyism and patronizing approach in relations between them. Thus, the private sector can therefore, contribute to economic development and the creation of economic champions but maybe not to a leveled playing field between sectors and within the private sector. The paper aims at putting forward the fact that the State is actually piloting the private economy. In reality the Vietnamese authorities seem to adapt to it and take advantage of its development.