The 9^th National Congress of the Communist Party of Vietnam in 2001 affirmed that Vietnam’s economic model in the transitional period is a multi-sectoral commodity economy operating in accordance with market mechanisms under State management and Party leadership – in other words, a socialist-oriented market economy. Vietnam has fined tune the economy mechanism to bring higher benefit to the people.

Consensus and elaboration of a socialist-oriented market economy

The renewal process has proved the correctness of the Communist Party of Vietnam’s decision to shift to the market economy model. It has helped Vietnam tap internal potentials, attract foreign capital and technology, promote production capacity, develop production forces, and ensure strong annual GDP growth. The social and technical infrastructure has been upgraded. People’s lives have been improved.

Compared to a full market economy, Vietnam’s market economy has remained different from the world due to an imperfect understanding of a socialist-oriented market economy and the need of economic reform for development. It’s time to clarify and reach a consensus on Vietnam’s socialist-oriented market economy. As economist Vo Tri Thanh puts it: “We’ve talked about the socialist-oriented market economy for years. It’s time to reexamine it, because the world has changed and Vietnam is at a turning point in reform and development. We need to analyze 3 aspects: the rules, the organization, and the operation of a socialist-oriented market economy.”

Ensuring humanism in a socialist-oriented market economy

Secretary General of the Vietnam Economic Science Association Nguyen Quang Thai said the Party and State have insisted on pursuing a socialist-oriented market economy. “A true market economy complies with market rules, supply and demand, market prices, and competition. The Party Central Committee has set two goals: a modern market economy and international integration. We highlight humanism in Vietnam’s market economy, where rapid sustainable development as reform results benefits every citizen.”

Associate Professor Doctor Nguyen Thi Nhu Ha of the Ho Chi Minh National Academy of Politics says: “We must resolve issues relating to ownership, business organization, and restructuring. Human resources development is an important factor in scientific and technological research and application to boost productivity. Focus should be put on agriculture to make it a key sector of the national economy.”

 Developing a socialist-oriented market economy is the key to building a modern economy and integrating into the global labor chain. It’s the correct way to exploit national resources towards industrialization and modernization.