The Party will issue a new definition of a socialist-oriented market economy.

On the morning of February 28, in Hanoi, the Central Theoretical Council coordinated with the Vietnam Academy of Social Sciences to organize a scientific seminar with the theme "Perception of the socialist-oriented market economy," aiming to directly contribute to the continued completion of the Summary Report on a number of theoretical and practical issues over 30 years of renovation and the Draft Political Report of the 11th Party Central Committee at the 12th National Party Congress.

A corner of Ho Chi Minh City, the economic locomotive of the country. Photo: VNA

Socialist-oriented market economy through 30 years of innovation

The report introducing the discussion by Professor, Doctor Nguyen Xuan Thang, Vice Chairman of the Central Theoretical Council, President of the Vietnam Academy of Social Sciences, stated that in the process of innovation, the Party has increasingly recognized and become closer to reality the general concept of a socialist-oriented market economy.

The practice of 30 years of renovation has convincingly demonstrated the use of market economy as a means to build socialism.

The economy has continuously achieved high growth rates and stable development; the poverty rate has decreased sharply, sustainably and impressively, recognized by the international community; the material and spiritual life of the people has been significantly improved.

The country has emerged from the socio-economic crisis and underdevelopment, becoming a middle-income country. The political and social situation is stable, national defense and security are strengthened. Foreign relations are increasingly expanded and deepened, and the country's position and power are constantly enhanced in the international arena.

The socialist-oriented market economic institutions, especially the legal system, mechanisms and policies, continue to be improved. The role, efficiency and competitiveness of economic entities and types of enterprises in the economy are enhanced. The investment and business environment is improved, more equal and open.

Market factors and market types are formed more synchronously, operate basically smoothly, and are linked to regional and international markets. Most commodity prices are established according to market principles.

The role of the State has been adjusted to be more suitable to the market mechanism, increasingly promoting democracy in economic and social life. The mobilization and allocation of resources associated with strategies, planning, and plans for economic and social development have gradually become suitable to the market mechanism; limiting and controlling business monopoly. Deep international economic integration at many levels, diverse in form, gradually adapting to the principles and standards of the global market.

However, the process of building, developing and perfecting this model still has many limitations, weaknesses and encounters many obstacles and difficulties.

New perception of socialist-oriented market economy

In the process of studying and summarizing practices, inheriting and absorbing theoretical achievements of the Party Congresses over six congresses, the Draft Political Report of the 12th Congress has put forward a new definition of the concept of a socialist-oriented market economy.

That is: “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 suitable 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 a rich people, a strong country, democracy, fairness, and civilization.

Vietnam's socialist-oriented market economy has progressive production relations in line with the development level of productive forces; there are many forms of ownership and many economic sectors, in which the state economy plays a leading role, the private economy is an important driving force of the economy; subjects of economic sectors are equal, cooperate and compete according to the law; the market plays a key role in mobilizing and effectively allocating development resources, and is the main driving force to liberate productive forces; state resources are allocated according to strategies, plans and schemes in line with the market mechanism.

The State plays a role in orienting, building and perfecting economic institutions, creating a fair, transparent and healthy competitive environment; using State resources and tools and policies to orient and regulate the economy, promote production and business and protect the environment; implementing social progress and equity in each step and each development policy. Promoting the role of the People as masters in socio-economic development.

On the basis of unified perception of Vietnam's socialist-oriented market economy in the above spirit, the Draft Political Report of the 12th National Congress continued to specify, set out the direction, goals and tasks for developing the socialist-oriented market economy in the next 5-10 years.

Specifically, “By 2020, strive to basically complete and synchronize the system of socialist-oriented market economic institutions according to the common standards of a modern market economy and international integration; ensure the synchronization between economic institutions and political institutions, between the State and the market; ensure the harmony between economic growth, cultural development, human development, social progress and equity, social security, environmental protection, sustainable social development; proactively and actively integrate into the international economy in conjunction with building an independent and autonomous economy; ensure publicity, transparency, and predictability in the construction and implementation of economic institutions, creating stable and favorable conditions for socio-economic development.”

At the seminar, experts and researchers discussed: Current status of awareness and practice of socialist-oriented market economy; new awareness of socialist-oriented market economy.

Scientists contributed opinions on the general conceptual understanding of the socialist-oriented market economy after 30 years of renovation, which has long-term orientational value throughout the transition period; clearly stated issues that need to continue to concretize the general conceptual understanding of the socialist-oriented market economy to suit the conditions and circumstances of Vietnam and changes in the international and regional situation in the next 5-10 years, with a view to 2020.

From general and specific perceptions of the socialist-oriented market economy, delegates proposed breakthrough directions, tasks and solutions; specific essential conditions and mechanisms and policies for implementation.

Delegates discussed the tasks of continuing to perfect the ownership institution, developing economic sectors and types of enterprises; synchronously developing market factors and types of markets; promoting and improving the effectiveness of international economic integration; improving the Party's leadership capacity, the effectiveness and efficiency of the State's management of socio-economics and promoting the people's role as masters in socio-economic development.

According to Vietnam+