The Communist Party of Vietnam believes a socialist-oriented market economy is indispensable to Vietnam’s path to socialism. Vietnam aims to develop a modern, integrated market economy while maintaining the principles of socialism.
The Party’s leadership of the socialist-oriented market economy has influenced Party Congresses where orientations, directions, goals, and solutions have been mapped out for different national development periods. Since the 6th National Party Congress, the Party promoted economic reform by adopting a multi-sector commodity economy regulated by the market and managed by the State.
The 9th Party Congress in 2001 defined “socialist-oriented market economy” as “a multi-sector commodity economy regulated by the market and managed by the state toward socialism”. The definition grew out of 15 years of mindset reform and Vietnam’s experience, particularly lessons learned after the 7th and 8th National Party Congresses. Since then, Vietnam’s socialist-oriented market economy has developed steadily.
During the 35 years of national renewal since 1986, Vietnam’s socialist-oriented market economy has embraced features of an international standard modern market economy - diversity of ownership and economic sectors, freedom of business, freedom of commodity movement, fair competition, and a coordinated market system. The State’s economic management is based on law, policies, strategies, plans and use of State resources, as well as non-intervention into businesses’ operations while maintaining currency values, stabilizing the macro-economy, and minimizing or correcting errors of the market economy. Regulation of the market economy has been coordinated. Businesses have improved their competitiveness. Prices of commodities have been basically decided by the market while production and distribution have responded to price signals and supply and demand. The market regulates production and distribution as well as mobilizes and distributes resources for production.
Vietnam has ensured a socialist orientation for its market economy through close coordination with the law-governed socialist State led by the Communist Party of Vietnam which limits and overcomes negative impacts on the economy, maintains economic balance, stabilizes society, ties economic development to cultural development, promotes social progress and equality, and protects the environment.
Reformed State management has fostered the positives while reducing the negatives of the market economy to ensure rapid, sustainable growth toward the goals of a prosperous people, a strong country, democracy, equality and civilization.
The Communist Party of Vietnam has gradually clarified its perception of the socialist-oriented market economy and fine-tuned mechanisms, policies, and institutions. Vietnam is improving and modernizing its market to keep pace with other world markets.
Improvements in theory and mindset have been reflected in economic policy and foreign policy with Vietnam further integrating into the global economy. Vietnam’s its remarkable achievements in socio-economic development and economic, and political cooperation during the national renewal period have justified Vietnam’s decision to adopt a market economy. Vietnam’s socialist-oriented market economy is conducive to becoming a democratic, fair, civilized, and modern society.