Socialist-oriented market economy: concept and development soluti

Radio Voice of Vietnam
November 17, 2003

Vietnam and China shared experiences in developing socialism and market economy at a two-day symposium in Beijing last month.

The Vietnamese delegation was led by Nguyen Phu Trong, Politburo member and president of the Party Central Committee’s Theoretical Council. Trong delivered an important report highlighting Vietnam’s concept of socialism and the development of socialist-oriented market economy in the country. VOVNews presents you excerpts of the report.

According to Trong, the socialist-oriented market economy is a new economic model in the period of transition to socialism. Market economy can be translated as the ‘universality’ while the socialist-oriented market economy is the ‘specificity’ of Vietnam, as it conforms to the country’s specific conditions and characteristics.

The development of the socialist-oriented market economy shows the country is very selective about achievements of humankind civilization, in order to develop the active role of the market economy in boosting the production force, labour socialisation, technology advances, while improving product quality, contributing to enriching society and improving people’s living conditions. However, it is necessary to devise effective measures to limit negative phenomena of the market economy, including pure profits, fierce competition, excessive exploitation and division between the rich and the poor.

The ninth National Party Congress made it clear that Vietnam’s socialist-oriented market economy is an economic model, which both conforms to principles of the market economy, and is based on and guided by principles and nature of socialism in terms of the ownership, management organization and distribution. In other words, the socialist-oriented market economy is a multi-sectoral commodity economy, which is regulated by the market, under the State management, with the aim of building a strong and prosperous country and an equitable, democratic and civilized society.

The major goal of the socialist-oriented market economy is to develop production force and economy to build a firm technical and material foundation for socialism, and improve people’s well-being. Developing modern production force is closely linked to building new and advanced production relations.

The socialist-oriented market economy is comprised of many ownership types and economic sectors, in which the State-owned economy plays the vital role.

It can be said that the socialist-oriented market economy is an economic model of a society in its transition from a low economic level to a higher level, toward a new society - the socialist regime. It is a well-organized market economy, under the leadership of the Communist Party and management of the socialist State. It limits weaknesses arising from the spontaneity of the market, so as to better serve the interests of a majority of the population and the sustainable development of the entire nation.

Advocacy of building and developing the socialist-oriented market economy reflects the Communist Party of Vietnam’s thinking and stance toward a combination of production relationship and production force in the period of transition to socialism in Vietnam.

To develop the socialist-oriented market economy, Vietnam will continue

- To implement consistently the policy of a multi-sectoral economy, considering these sectors an important part of the socialist-oriented market economy, which will develop on the basis of long-term, healthy and equal-footing competition and co-operation.

- To institutionalize market factors by establishing multi-market forms, renew and increase the efficiency of the State management.

- To further deal with social issues to create an equitable society, considering it an important content of socialist orientations to ensure the superiority of a new society. It not only help create a strong motivation to develop production, increase productivity, but also realize the equality in social relations and encourage people to make fortune legitimately, as well as regulate social relations.

- To maintain and enhance the leadership of the Communist Party. It is an principle issue and the most decisive factor to secure a socialist oriented market economy, as well as the development cause of the entire nation. It is also the most useful lesson drawn during the renovation process.
Briefly, the development of the socialist-oriented market economy is not only Vietnam’s theoretical discovery the socialism, but also its selection and confirmation of the socialist path and development model in reality. The development of such economy is an inevitable process in conformity with the general rules of the era, meeting the country’s development requirements.