Policy Statements

Vietnam

1. Policy Statements

Since 1986, Vietnam has initiated the Doi Moi policy, implementing a multi-sector economy, transforming into a market economy under the State management, with an open policy, active international economic integration, foreign policies of multilateralization and diversification with a saying: Vietnam would like to make friends with all countries for the objective of rich people, strong nation, fair, democratic and civilized society. Along with this transformation, the role of the State and market in the economy has been fundamentally changed: The State creates a favorable and open environment for enterprises to do business; enterprises of different economic sectors have rights to be active in their business operation and be equal to compete with each other in the market.

The 1992 Constitution (as amended and supplemented in 2001) recognized the rights of business freedom and the development of a multi-sector economy in Vietnam, setting up foundations on which enterprises of all forms of ownership compete with each other. So far, legal documents such as Law on Foreign Investment in Vietnam, Law on State-owned Enterprises, Law on Cooperatives, Law on Enterprises, Commercial Law, Law on Credit Institutions, Law on Insurance etc., have contributively established a necessary legal framework for the implementation of those rights of enterprises.

Since the early 1990s, as the State performed a great deal of policies to renovate, demolish the State subsidies, facilitate the operation of all economic sectors, the number of enterprises of all economic sectors has increased rapidly, participating into most fields of the national economy. Along with this process, competition has been considered to be a motive for development, improving economic efficiency, promoting the social progress. Simultaneously, Vietnam has been step by step removing those laws and regulations which are of the ability to restrain competition.

The Government devotes a lot of attention to the research of domestic competitive environment for the purpose of finding out solutions to overcome the market inherent shortcomings. This can be explained that the Government has been directing to speed up the progress of restructuring and renovating State-owned enterprises and improving the legal system that are in-line with international rules; as well as creating an equal business environment for all enterprises in Vietnam, simultaneously to comply with international commitments to integrate into the world economy.