Abstract
This article explains Vietnam’s economic growth and industrial development despite the strong rent-seeking features of its economy. At first, this article discusses the post-Doi Moi political economy in Vietnam. From the adoption of Doi Moi in 1986 by the CPV’s Sixth National Congress to present day, Vietnam’s economy has transformed from a centrally planned model to market oriented with four characterized sub-periods. I divide the subperiods based on the economy’s entrepreneurial perspectives, emerging cultural values, the building of market economy, and attitude toward global geopolitics and economics. Secondly, this article explains the development of Vietnamese capitalism focused on the features of rent-seeking societies. Three analytical rent-seeking models are employed to assess three different industries: textile-garment and telecommunications, both under a state capitalist system with varying degrees of state control, and the motorcycle industry developed in a crony capitalist manner. Our cross-industry analyses demonstrate how a developing country such as Vietnam overcomes pervasive rent seeking to achieve growth outcomes. Under conditions of controlled economic reform, the Vietnamese government managed rent seeking using various measures of state intervention coupled with gradual market openness in the industrial sectors.
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