Need to have correct understanding of market economy

(Baonghean) - Socialist-oriented market economy is an issue of interest to many researchers. Through the conference forums, it is shown that domestic researchers basically agree on the perception of socialist-oriented market economy as the viewpoint of our Party. In the process of researching and giving comments on the Draft Documents to be submitted to the 12th National Party Congress, we believe that it is necessary to have a correct perception of socialist-oriented market economy in order to perceive the leadership role of the Party in the development process in our country.

Since the initiation of the renovation process (1986), our Party has advocated "Developing a multi-sector commodity economy operating under a market mechanism under State management". However, it was not until the 1990s that our Party raised the issue of "Building a socialist-oriented market economic institution". This institution is considered a special economic management mechanism of Vietnam in the transition period to socialism. The 6th Conference of the 10th Party Central Committee (2008) issued Resolution No. 21 on "Continuing to perfect the socialist-oriented market economic institution". The socialist-oriented market economic institution has been recorded in the latest Constitution of the Socialist Republic of Vietnam (2013 Constitution).

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

The Draft Political Report submitted to the 12th National Party Congress provides a comprehensive definition of the 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 appropriate to each stage of the country's development. It is a modern and internationally integrated market economy; managed by the socialist rule-of-law State, led by the Communist Party of Vietnam, aiming at the goal of "a rich people, a strong country, democracy, fairness, and civilization". The Draft Political Report identifies one of the key tasks for national development as "Perfecting institutions and developing a socialist-oriented market economy".

Thus, developing a socialist-oriented market economy is our Party's consistent viewpoint in the renovation policy. This is a scientific viewpoint based on Marxist-Leninist theory and Ho Chi Minh's thought, consistent with the reality of the Vietnamese revolution. However, because this is a new issue in both theory and practice and has no precedent in history, there are still points of disagreement in terms of perception. Therefore, the Draft Political Report clearly states: "Continue to unify the perception of a socialist-oriented market economy".

Many people mistakenly believe that the market economy is only associated with capitalism, while socialism does not have a market economy. This concept comes from the centralized economic model of the former Soviet Union and Eastern Europe (before it collapsed). However, the Soviet Union itself, during the period of building socialism under Lenin's leadership, had a market economy. According to Lenin's theory, socialism is a transition from capitalism to communism. During this transitional period, the economic model is mixed, intertwining state economy, collective economy and private capitalist economy. Lenin himself proposed the New Economic Policy (NEP) according to which the State allows some markets to exist, and economic sectors are completely free to make their own economic decisions. After Lenin's death, the new economic policy was abolished, replaced by a centrally planned economic model, leading many people to mistakenly believe that socialism does not have a market economy.

There is a view that the current Vietnamese market economy creates a strong driving force for the country's development, but in terms of general characteristics, it is no different from the market economy of capitalism. For example, the market economy of capitalist countries must also "operate fully and synchronously according to the laws of the market economy", is also "a modern and internationally integrated market economy", and the market economy of capitalist countries is also managed by the state. If the goal of Vietnam's socialist-oriented market economy is "a rich people, a strong country, democracy, fairness, civilization", then today many developed capitalist countries are also aiming for a rich and civilized society...

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

Firstly, it is necessary to clarify that the socialist-oriented market economy and the capitalist market economy are fundamentally different. The capitalist market economy serves the interests of the bourgeoisie and transnational capitalist corporations. The socialist-oriented market economy serves the interests of the country and the people. The capitalist market economy exploits increasingly sophisticatedly, and social injustice becomes increasingly profound. The socialist-oriented market economy aims for a democratic, fair, and civilized society.

Second, the purpose of developing a socialist-oriented market economy is to develop productive forces, and in the long term, it still aims to perfect socialist production relations. Meanwhile, a capitalist market economy develops productive forces to maintain capitalist production relations in the long term. Therefore, a socialist-oriented market economy is owned by the people, while a capitalist market economy is owned by global capitalist corporations.

Third, the socialist-oriented market economy is the dialectical unity between the generality of the world market economy and the specificity of the Vietnamese market economy. The generality of the world market economy is compliance with the common laws of the market, free and equal competition, interwoven multi-ownership regime, global economic integration... The specificity of the Vietnamese market economy is to develop in a socialist orientation, led by the Communist Party of Vietnam, under the management of the socialist rule-of-law state, with the state economy playing the leading role...

The above contents need to be clarified so that cadres and people can have a correct understanding of the socialist-oriented market economy. This is a historical category, characteristic of the transitional period to socialism, and is not at all a vague concept as some people mistakenly believe. We must have a correct understanding of the socialist-oriented market economy in order to firmly maintain our Party's viewpoint: "innovation but not change direction".

TRAN HONG CO