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Vietnamese Gradualism in the Reform of State-Owned Enterprises: The First Phase of Doi Moi

In: Transition from Socialist to Market Economies

Author

Listed:
  • Tran Tho

Abstract

In any planned economy the state owned enterprises (SOEs) are a major factor in stagnant growth and macroeconomic instability.1 Reforming them is extremely difficult because of the social burdens normally imposed upon them. They provide the employees with social welfare for expensive items like medical care, pension benefits, etc. and guarantee employment. The SOE workers regard themselves under a kind of lifetime employment system. Since social safety nets, social welfare, and employment opportunities elsewhere are lacking, they resist very strongly reform programs that may lay them off.

Suggested Citation

  • Tran Tho, 2009. "Vietnamese Gradualism in the Reform of State-Owned Enterprises: The First Phase of Doi Moi," Palgrave Macmillan Books, in: Shinichi Ichimura & Tsuneaki Sato & William James (ed.), Transition from Socialist to Market Economies, chapter 5, pages 101-122, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-24498-6_6
    DOI: 10.1057/9780230244986_6
    as

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