A proper understanding of the market economy is necessary.

(Baonghean) - The socialist-oriented market economy is a topic of great interest to many researchers. Through various forums and seminars, it has been shown that domestic researchers generally agree on the understanding of the socialist-oriented market economy as envisioned by our Party. In the process of researching and contributing to the Draft Document for the 12th Party Congress, we believe that a correct understanding of the socialist-oriented market economy is necessary to understand the Party's leadership role in our country's development.

From the very beginning of the Doi Moi (Renovation) process (1986), the Party advocated "Developing a multi-sector commodity economy operating under a market mechanism with state management." However, it wasn't until the 1990s that the Party raised the issue of "Building a socialist-oriented market economy." This institution is considered a unique economic management mechanism for Vietnam during the transitional period to socialism. The 6th Plenum of the 10th Central Committee of the Party (2008) issued Resolution No. 21 on "Continuing to improve the socialist-oriented market economy." The socialist-oriented market economy has been enshrined in the latest Constitution of the Socialist Republic of Vietnam (the 2013 Constitution).

Vinh Market - a highlight of Vinh City's commercial center. Photo: Sy Minh

The draft Political Report submitted to the 12th National Congress of the Party provides a comprehensive definition of a socialist-oriented market economy as follows: “Vietnam’s socialist-oriented market economy is an economy that operates fully and synchronously according to the laws of the market economy, while ensuring a socialist orientation consistent with each stage of the country’s development. It is a modern market economy integrated internationally; managed by a socialist rule-of-law state, led by the Communist Party of Vietnam, aiming for the goal of ‘a prosperous people, a strong nation, democracy, fairness, and civilization.’” The draft Political Report identifies one of the key tasks for national development as “Improving institutions and developing a socialist-oriented market economy.”

Thus, developing a socialist-oriented market economy is a consistent viewpoint of our Party in the reform process. This is a scientific viewpoint based on Marxist-Leninist theory and Ho Chi Minh Thought, consistent with the realities of the Vietnamese revolution. However, because this is a new issue both theoretically and practically, and has no precedent in history, there are still some points of disagreement in understanding. Therefore, the Draft Political Report clearly states: "Continue to unify understanding of the socialist-oriented market economy."

Many people mistakenly believe that a market economy is only associated with capitalism, and that socialism does not have a market economy. This notion stems from the centralized, subsidized economic model of the former Soviet Union and Eastern Europe (before its collapse). However, the Soviet Union, during its socialist construction phase under Lenin's leadership, did have a market economy. According to Lenin's theory, socialism is a transition from capitalism to communism. During this transitional period, the economic model is a mixed one, blending state-owned, collective, and private capitalist economies. Lenin himself proposed the New Economic Policy (NEP), under which the state allowed certain markets to exist, and economic sectors were completely free to make their own economic decisions. After Lenin's death, the New Economic Policy was abolished, replaced by a centralized, subsidized planned economy, leading many to mistakenly believe that socialism does not have a market economy.

Some argue that Vietnam's current market economy provides a strong impetus for national development, but considering its general characteristics, it is no different from the market economy of capitalism. For example, the market economies of capitalist countries must also "operate fully and synchronously according to the laws of the market economy," are also "modern and internationally integrated market economies," and are also subject to state management. If Vietnam's socialist-oriented market economy goal is "a prosperous people, a strong nation, democracy, fairness, and civilization," then many developed capitalist countries today are also striving for a prosperous and civilized society...

In our opinion, to refute the above erroneous views, the Draft Political Report needs to clarify the following points:

Firstly, it is necessary to clarify the fundamental differences between a socialist-oriented market economy and a capitalist market economy. A capitalist market economy serves the interests of the bourgeoisie and transnational corporations. A socialist-oriented market economy serves the interests of the country and its people. Capitalist market economies are increasingly sophisticated in their exploitation and increasingly profound in their social injustice. A socialist-oriented market economy aims for a democratic, just, and civilized society.

Secondly, the purpose of developing a socialist-oriented market economy is to develop productive forces, while in the long term, it aims to perfect socialist production relations. A capitalist market economy, on the other hand, develops productive forces to maintain capitalist production relations in the long term. Therefore, a socialist-oriented market economy is controlled by the people, while a capitalist market economy is controlled by global capitalist corporations.

Thirdly, the socialist-oriented market economy is the dialectical unity between the general characteristics of the global market economy and the specific characteristics of Vietnam's market economy. The general characteristics of the global market economy include adherence to universal market laws, free and equal competition, a system of interwoven ownership, and global economic integration. The specific characteristics of Vietnam's market economy are its development under a socialist orientation, led by the Communist Party of Vietnam, managed by a socialist rule-of-law state, and with the state economy playing a leading role.

The above points need to be clarified so that officials and the people can correctly understand the socialist-oriented market economy. This is a historical category, characteristic of the transitional period towards socialism, and is by no means a vague concept as some people mistakenly believe. A correct understanding of the socialist-oriented market economy is essential to firmly upholding the Party's viewpoint: "reform but not change direction."

TRAN HONG CO