Economic Reform In Vietnam Research Articles

Economic reform in Vietnam: Dismantling the centrally planned Economy

While Vietnam pioneered macro‐economic reforms among socialist states, with 1989 being a decisive year in coming to grips with hyper‐inflation and other inherently destabilizing economic imbalances, much remains to be done. There is a wide range of institutions associated with market‐type economies still not in place, and the transition is certainly made no easier by the social and regional tension that can be expected to arise. The sequencing and timing of further measures towards the complete dismantling of the centrally planned economy will be crucial. The restrictions imposed by a continuing commitment to the political culture of the pre‐reform era is another dark cloud on the horizon.

Premier bilan des réformes économiques au Vietnam

The economic reform in Vietnam : a first appraisal. Towards the end of 1986, pressured by a rapidly deteriorating situation, Vietnam undertook a major economic reorganization based on : development of the private sector ; attraction of foreign capital. A decree issued on November 26 1986, authorized the creation of private enterprises in farming and agriculture, handicrafts, small industries and in the service sector. Encouraged to seek their own sources of financement, state enterprises now have the right to sell on the free market all they produce above and beyond their State-required allotments ; further in 1988, some of these enterprises were authorized to issue bonds in order to increase their capital. In agriculture, the measures aim to spur the farmers on to increase their sales of products either to the State or on the free market. New policies, adopted in 1987, aimed at encouraging the creation in certain high-priority sectors of joint ventures in which foreign participation can represent up to 100 % of the capital. Where, then, is Vietnam's economy going ? Are these reforms based on the Chinese model or that of Soviet perestroïka ? While keeping in mind that in 1989 the leadership remains divided on the question of the scope and rythm of the reforms, our paper will examine the application of the measures outlined above and their initial impact.

Reforming state finance in post‐1975 Vietnam

This article analyses the process of transition from a system of state bureaucratic finance to one of socialist economic accounting in the context of the post‐1975 economic reforms in Vietnam. Three theoretical issues underlying this reform movement are discussed. First, the tension between the central level and individual enterprises with respect to economic calculus. Second, the conflict between the need to centralise financial resources in the state budget as the most important instrument of economic policy, and the interests and behaviour of state enterprises. Third, direct transfers of enterprise funds to the budget as against a partial decentralisation of resources combined with greater use of financial intermediation. The discussion concludes with the Eighth Plenum of the Party in 1985, which laid the basis for further reforms.