Vietnam to strengthen private sector

["Ulhas Joglekar" <joglekarulhas@xxxxxxxxxxx>]

The Hindu

Wednesday, Mar 06, 2002

Vietnam to strengthen private sector

By Amit Baruah

SINGAPORE MARCH. 5. Communist Vietnam believes that encouraging "strong
development of the private economy'' is a long-term "strategic issue'' in
developing the country's "socialist-oriented multi-sectoral'' economy.
The Central Committee of the Communist Party of Vietnam (CPV) said in a
communique issued at the end of its fifth plenum that the State respected
the people's right of business freedom according to law. The plenary session
called for taking out the "collective economy out of the current ailing
situation in order to help it attain higher growth rates and constitute a
bigger portion of the country's GDP''.
The Central Committee stated that there was need to encourage vigorous
development of the private economy, raise its efficiency and sharpen its
competitive edge for higher growth, the Vietnam News Agency (VNA) reported.
``The State respects the people's right of business freedom according to
laws, protects their right of legitimate property ownership, creates
favourable conditions for the private economy to develop along legal
guidelines and ensures that the private sector receives fair treatment, and
protects the legitimate and genuine interests of both workers and labour
employers,'' it said. According to the Central Committee, there was a need
to create a "favourable legal and psychological environment for the
development of the private economy''. It would appear from the resolutions
adopted by the plenary session that Vietnam, which has allowed private
economy in practice, now wants to grant it greater legal protection and
bring the economy in line with international norms. The change in party
leadership has, clearly, given a new boost to those in favour of
strengthening the private sector of the economy. The earlier leadership was
seen as wary in encouraging the private sector. That hesitation now seems to
have been abandoned.
The resolution also called for amending and supplementing a number of
mechanisms and policies relating to the private economy _ land policy that
enables businesses to expand production, financial and credit policies,
labour and salary policies, personnel training, scientific and technological
development as well as policies to support trade promotion.


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