Economic Transition and Inequality in Vietnam: Political Economy of Privatization and Inequality (2017.03)

• Authors : Yangho Rhee, Hyeok Yong Kwon, and Eunju Chi
• Journal : East and West Studies
• Publisher : Institute of East and West Studies, Yonsei University
• Volume : 29(1)
• Publication Date : March, 2017
• Abstract : In 1986, Vietnam introduced capitalism through the Doi Moi reforms. Generally, socialism turns to capitalism, economic recession and inequality follows. However, transition economy in Vietnam produced high rate of economic growth without the aggravation of inequality. In addition, the poverty rate reduced rapidly during the reforms. These performances are different features from other transition economies such as post-communist countries and China. Contrary to Vietnamese case, the post-communist countries in the Central and Eastern Europe and Central Asia experienced long economic recession and the aggravation of inequality. And China has been suffering from high level of inequality after economic reforms. This article examines the process of economic reforms in Vietnam, and then tries to figure out the reason which makes the difference between them. Focusing on the role of Communist Party of Vietnam in reform process, this article shows that flexible and responsible leadership was the main reason of its economic growth without the aggravation of inequality.

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