Socialist-oriented market economy

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The socialist-oriented market economy is the official title given to the current economic system in the Socialist Republic of Vietnam. It is described as a multi-sectoral market economy where the state sector plays the decisive role in directing economic development, with the eventual long-term goal of developing socialism.

The socialist-oriented market economy is a product of the Đổi Mới economic reforms which led to the introduction of a market-based economy based on the predominance of state-owned industry, and guided by planned state production. The economic model is similar to the Socialist Market Economy employed in the People's Republic of China.

Origin

After the United States' imperialist war on Vietnam, the country's infrastructure was essentially nonexistent, due to the heaviest bombing campaign in military history up to that point. During the reconstruction period, the only major country willing to assist Vietnam was the Union of Soviet Socialist Republics. The USSR sent various forms of humanitarian aid to Vietnam, including food, fertilizers, machines, and more. In the latter 1980s, the USSR was under the corrupt and bourgeois leadership of Mikhail Gorbachev, and thus began to support Vietnam less, ultimately ending support with the undemocratic overthrow of the Soviet Union.

As a result of these circumstances, the government of Vietnam was forced into accepting some market reforms in order to be accepted into capitalist and US dominated economic organizations such as the World Trade Organization (WTO). The requirements necessary for Vietnam to be accepted into the WTO were visibly one-sided toward the US, but the government had no other choice.