The Political Economy of Vietnam’s Transformation Process
Author(s)
Dinh, Quan Xuan
Abstract
Reforms started by Vietnam in 1986 are far from complete. As a result of a slowdown in economic growth, growing unemployment, and social unrest, Vietnam faces renewed challenges for further reform. With doi moi (renovation) there has been greater openness and mounting pressure for more open discussions within the Communist Party of Vietnam (CPV). The country faces two options: to continue with the same pace of change and risk falling economically behind neighboring countries, or to undertake more radical economic reform and risk losing control. This article explores the economic decision-making process in Vietnam. It argues that gradualism in reform is due to internal strife, to a trial-and-error approach, and to the lack of capable human resources. Evidence suggests that prescription for economic reforms cannot be carried out effectively without modernizing the CPV’s political decision-making process.
