Hostile forces insist that there is no economy that can be called a socialist-oriented market economy, that a market economy and a socialist orientation are opposite and incompatible, and that it’s subjective, unscientific, and unpersuasive to associate a socialist orientation with a market economy. They say a market economy is a feature of capitalism, operates according to the rules of capitalism, and cannot compromise and combine with the goals of socialism in national economic development because of the inherent conflicts. Hostile forces argue that Vietnam needs to move toward a capitalist economy and capitalism.

These arguments are groundless and subjective. First, the origin and nature of the market economy is the commodity economy, with categories of commodity, currency, value, and price and rules of competition, supply, and demand. These categories and rules were created before capitalism and have been used by capitalism to develop the capitalist market economy. Now the market economy of developed capitalist countries is a market economy under state management, regulated by both visible and invisible hands. The state-managed market economy has different models based on differing levels of state management.

Second, the market economy is the product of civilization, not of capitalism. Capitalism takes the market economy as the foundation for its existence, evolution and development.

There are multiple models of market economy in developed capitalist countries: the free market economy of the US, the socialist market economy of Germany, the state welfare market economy of Sweden. All of these show different degrees of socialist orientation. This is a progressive trend and the germ of socialism is inside every developed capitalist country. In Vietnam, the general economic model during the transition to socialism is the socialist-oriented market economy, which harmoniously combines factors of the market economy and the capitalist economy to build materials for socialism.

Third, in the state-directed market economy, particularly in developed countries, the state creates a legal framework for competition; protects, promotes, and respects healthy competition; prevents monopoly from obstructing competition; fights against unfair competition; and regulates and settles failures in the market. All market economies around the world embrace the rules of the market economy and the role of state management. The State ensures, respects, and creates an environment for the operation of the rules of the market economy, prevents negative impacts caused by rules of the market economy, maintains a stable environment for economic development, and directs economic development to ensure social equality and social security.

Fourth, Vietnam’s renewal process and development of a socialist-oriented market economy embraces all factors of the modern market economy – diversity of ownership and economic sectors, freedom of production and circulation of goods which are not banned by law, and fair competition. The State’s role in economic management is based on laws, policies, strategies, plans, and state economic resources. The state stabilizes the macro-economy, prevents or fixes failures of the market mechanism, and does not intervene in the activities of business owners. Over 35 years of national renewal, Vietnam has had major economic achievements in all fields. Vietnam’s achievements during the last ten years, in particular, has dramatically boosted Vietnam’s growth and international status.

Vietnam’s achievements during these 35 years of national renewal suggest that its socialist-oriented market economy is comprehensive, systematic, scientific, and practical, a modern market economy which is integrating internationally, operates fully within the rules of a market economy under the management of a socialist state led by the Communist Party of Vietnam, and is moving toward the goal of becoming a prosperous people living in a strong, democratic, equal, and civilized country.  Distortions spread by hostile forces to deny Vietnam’s socialist-oriented market economy have failed to overshadow its achievements over the years or to change the path the Vietnamese Party and people have chosen.