Abstract
Despite its diversity, the market economy is inseparable from the role of the state. Differences between historical periods and between countries are in terms of the nature of the State, the extent and scope of the state’s intervention in the economy, and the consequences of such intervention in the market. At present, globalization asserts and demands the promotion of the role of the state and the need to adjust it to adapt to the effects of globalization. This article presents Vietnam’s point of view is that in a market economy, and particularly, in the context of globalisation, the role of the state will not be diminished, and state management and intervention are always necessary. For Vietnam, the theory which advocates state intervention in addressing market failures is a perfect suit. This will make Vietnamese economy be adaptive with requirements of market economy in the context of globalisation in one hand, but in the other hand, this will enable the state to react promptly to deal with market failures and other problems caused by the integration to the world economy.
Highlights
The development of market economy has evidenced the emergence and application of numerous theories of economics
For Vietnam, the theory which advocates state intervention in addressing market failures is a perfect suit. This will make Vietnamese economy be adaptive with requirements of market economy in the context of globalisation in one hand, but in the other hand, this will enable the state to react promptly to deal with market failures and other problems caused by the integration to the world economy
There is the need for a careful study on theoretical approaches to the state role, challenges of globalisation faced to Vietnamese government in the pursuit of it unchangeable determination of market economy with socialist orientation
Summary
The development of market economy has evidenced the emergence and application of numerous theories of economics. Gordon, Riding the Tiger: The Politics of Reform in Post–Mao China (1st, Stanford University Press, 1993) 5 cited by Pietro Masina, ‘Vietnam after the Regional Economic Crisis: Reflections on Development Strategies’ (PhD Dissertation, Department of Social Sciences, Roskilde University, 2003) 27; Nikolaos Karagiannis and Zagros MadjdSadjadi, Modern State Intervention in the Era of Globalisation (2007) 238 were popular in capitalist system, the other refers to “socialism state” which once existed in socialist system which Vietnam, China and North Korea were examples Two of those share the common characteristic: the role of the state in promoting economic growth through planning and government intervention[63]. This model, was not a suitable choice for Vietnam
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