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Communist Vietnam Signals Retreat From Centralized Economy

VOA News

   Authorities in Vietnam's business hub of Ho Chi Minh City said recently
   they will not be investing in the economy directly anymore, signaling
   the latest move in the communist nation's ongoing transition away from
   a centrally planned economy.

   The secretary of Ho Chi Minh City's Vietnam Communist Party Central
   Committee, Nguyen Thien Nhan, noted that state investment, frequently
   in the form of state-owned enterprises, has decreased in recent years.
   By 2020, he reckons state investment will account for about 16% of the
   city's economy, just half of the 32% figure seen in 2005.

   "Up to a later stage, in terms of production and business investment,
   our state will basically not invest anymore," Nhan, who serves a
   position similar to a mayor of the city, said. "So the engine for
   economic growth lies in the private sector and foreign investment."

   The communist party has ruled the nation since the end of the Vietnam
   War in 1975, including with state-issued production quotas and price
   controls. However, the economy has been transitioning toward more
   private enterprise since the 1980s. That has meant that foreign
   corporations, domestic enterprises, and, most recently, startup
   enterprises have been playing an increasing role in the economy. That
   has also meant the government has been divesting and allowing more
   private shares in state owned enterprises, a process it refers to as
   equitization.

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