HANOI NATIONAL UNIVERSITY FACULTY OF ECONOMICS
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PHAM THI XUAN
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MACROECONOMIC PLANNING IN VIETNAM'S MARKET ECONOMY
MASTER'S THESIS IN POLITICAL ECONOMY
Major: KTCT Code: 5.02.01
Scientific supervisor: Associate Professor, Dr. Trinh Thi Hoa Mai
Hanoi - 2005
Introduction
INDEX
Chapter 1: Theoretical and practical basis of macroeconomic planning in a market economy 4
1.1. Market economy 4
1.1.1. General characteristics 4
1.1.2. Specific characteristics of the socialist-oriented market economy in Vietnam 7
1.2. Macroeconomic planning 11
1.2.1. Definition 11
1.2.2. Basic contents of macroeconomic planning 13
1.2.3. The relationship between planning, policy making and implementation 16
1.3. Macroeconomic planning in developing economies 19
1.3.1. The need for planning 19
1.3.2. Factors limiting the effectiveness of KHH 22
1.4. Experience of some countries 24
Chapter 2: Current status of macroeconomic planning in Vietnam 44
2.1. Changes in perception of KHHKTVM in the process of transition to a market economy in Vietnam 44
2.2. The process of innovation in the work of planning and implementing microfinance in Vietnam 52
2.2.1. Period 1979 - 1985 53
2.2.2. Period 1986 - 1989 56
2.2.3. Innovation efforts from 1989 to present 58
2.3. General assessment 77
2.3.1. Achievements 77
2.3.2. Limitations and causes 82
Chapter 3: Directions and solutions to perfect Vietnam's socio-economic development plan 86
3.1. Current advantages and disadvantages 86
3.1.1. International context 86
3.1.2. Domestic situation 88
3.2. Directions for innovation of KHHKTVM 90
3.3. Some innovative solutions for KHHKTVM 98
3.3.1. Innovation in the work of building socio-economic strategies 98
3.3.2. Improving the quality of the 5-year medium-term plan 103
3.3.3. Complete the annual plan 108
3.3.4. Innovation of the KHH with the completion of KTVM policy 111
3.3.5. Building the foundation and necessary conditions to improve the quality of KHH.113
Conclusion 119
References 121
LIST OF ABBREVIATIONS
AFTA ASEAN Free Trade Area
ASEAN Association of Southeast Asian Nations
CCTT Market mechanism
Federal Republic of
Socialism Socialism
State-owned enterprises State-owned enterprises
EU European Union
Macroeconomic planning Macroeconomic planning
Economic - Social Economic - Social
Market economy
LLSX Production flow
ODA Official Development Assistance
Production Relations
Labor force
Capitalism
TLSX Means of production
TLTD Consumer Materials
WTO World Trade Organization
Socialist Republic of Vietnam
Import and Export
INTRODUCTION
1. The necessity of the topic.
Macroeconomic planning is a tool for the State to perform its function of orienting the economy, gathering the actions of businesses and individual consumers into "vectors" of economic movement to ensure sustainable development.
Currently, the issue of planning and market is the top concern of many researchers, not only in our country but also in most countries in the world, because they want to find a more suitable and effective macroeconomic management model.
Previously, in the centralized bureaucratic mechanism, the macro-economic planning and subsidy in our country were carried out according to the principle of high centralization from the central to local levels, the basis mainly relied on the distribution relationship, the delivery of products according to administrative orders, other measures were not given much importance. The State intervened too deeply in economic fields, playing the role of the commander of economic activities.
The national renovation was initiated by the 6th Party Congress since 1986, our country has shifted to developing a multi-sector commodity economy operating under a market mechanism with state management in a socialist orientation. In the Political Report at the 9th Party Congress, it was mentioned: "Our State manages the economy according to the principle of combining the market with planning, promoting the positive aspects, limiting and overcoming the negative aspects of the market mechanism, protecting the interests of the working people and all the people". This is a new issue and there are still many different opinions.
Since the transition to building and developing a socialist-oriented market economy, the role of macroeconomic planning has been re-evaluated. The practical problem is how we should innovate macroeconomic planning to promote the development of a market economy.
The socialist-oriented market economy in our country promotes the positive aspects of the market mechanism and state management. That is why I chose the thesis topic: "Macroeconomic planning in the Vietnamese market economy".
2. Research situation
Since the renovation, issues related to the market mechanism of the economy have been studied more than issues related to the planning mechanism. And there are even fewer research works on macroeconomic planning in the Vietnamese market economy. However, there have been research works related to the topic published in a number of specialized research journals. Here are some of the main works and articles:
Le Hong Tien: Planning in a market economy, Communist Magazine No. 02/97.
Tran Ngoc Trang: Continuing to perfect planning under the impact of market mechanisms, Economics and Forecast magazine, No. 9+10/1995.
Hong Son: How does planning work in a market economy?, Economic and planning information No. 3/1992.
However, all are just small research articles, there has not been a systematic, complete research article on macroeconomic planning in Vietnam's market economy from the years of renovation until now.
3. Research purpose:
Based on the necessity and research situation as above, the thesis's objectives focus on the following main points:
Systematize the theoretical basis and international experience of macroeconomic planning in a market economy.
Assess the current state of Vietnam's macroeconomic planning since the economic reform.
Research and propose some viewpoints, directions and solutions to continue to improve macroeconomic planning work in the coming time in our country.
4. Research object and scope Research object:
The main subject of the thesis is macroeconomic planning in the market economy in Vietnam.
Research scope:
The thesis does not study the entire planning issue but only limits the scope of research to clarify the role and position of macroeconomic planning in the development of the socialist-oriented market economy in Vietnam today.
In terms of time scope, the thesis mainly focuses on the Renovation period from 1986 to present. However, the thesis also mentions the pre-renovation period because it is the basis for a more complete assessment of macro-planning work in Vietnam.
5. Research method :
The thesis uses research methods such as: dialectical materialism and historical materialism, analysis, deduction, synthesis, statistics, and comparison.
6. Expected new contributions of the thesis:
System of some international theories and experiences on macroeconomic planning in market economy.
Provide scientifically based assessments of the current status of macroeconomic planning in the market economy in Vietnam.
Propose some viewpoints, directions, solutions and recommendations to continue to improve Vietnam's macroeconomic planning work in the coming time.
7. Thesis layout
In addition to the Introduction, Conclusion and References, the content of the thesis is arranged into 3 chapters.
Chapter 1: Theoretical and practical basis of macroeconomic planning in a market economy.
Chapter 2: Current status of macroeconomic planning in Vietnam