The Analysis Of The Vietnam Government’s Role And Influence In The Process Of Economic Reform And Development

As one of the few socialist countries in the world, Vietnam shares the extremely similar developing mode and goal with China. After its independence and unification of South and North, Vietnam has experienced a fundamental reform with a soaring economic growth under the leadership of Vietnam Communist Party. Within more than 20 years of reform, Vietnam has ultimately become a driving force for economic development in Southeast Asia despite some difficulties and mistakes. Studying on the economic reform and policy of Vietnam has a research value for improving China’s market economy regime, since the successful open-up measures and policies is worth analyzing. In addition, by summarizing government policies in the field of both foreign trade and foreign direct investment from the insight of external relations can as well help us understand the nature of Vietnam economy more deeply.Based on the theory of government intervention and government-leading economy, this article states and summarizes the achievements of Vietnam’s reform and open-up in the recent 30 years starting from its independence and unification. Through the whole research, the author believes that under the correct decision-making of government, Vietnam developed rapidly both internally and externally. From domestic side, Vietnam initiated a three-stage reform, which is the taking-off period, fully reform period and the gradual improving period. Not only did it succeed in building a fair and ordered market economy, but also the important role of private sectors had been acknowledged. From the international side, Vietnam government mainly focused on regime construction. Under the guidance of providing a supreme environment for trading and investment, government spared huge efforts on implementing relevant policies, simplifying administrative procedures, establishing law articles and etc. In the trade field, Vietnam facilitated imports and exports by lowering tax, building bilateral and multilateral regimes and making long-term strategy. In the investment field, Vietnam aimed to attract more foreign investors by improving its investment environment. Vietnam has been built into one of the most appealing countries for investment all over the world. Last but not least, a simple comparison of government role within these two countries is followed to further demonstrate the idea that government influence needs to be defined specifically for one certain country. The author thinks the Vietnamese Government has played a leading role in driving its economic development but the role has been under great changes. It indeed made a thorough consideration regarding the relations between government and market, thus modified its policies accordingly. Through Vietnam experiences, the dissertation comes to the conclusion government must exert its influence according to the specific situation of one country and its political and economic goals. In one word, the relation between market and government should be adjusted to match with the historical background and economic development environment.