by Matteo Migheli, University of Torino
Each reform implies social and economic changes. As many transition countries, also Vietnam has implemented a comprehensive set of economic and social reforms, starting in the Eighties. In particular, in the framework of transition economies, Vietnam is a curious and unique case of reverse reunification: after experiencing a war the liberal part of the country was unified in a communist system, which today is implementing a comprehensive and deep process of renovation (doi moi).
This work investigates whether the Vietnamese are supportive of some of the main features of a market economy. In particular the preferences for competition, ownership of firms (either private or public) and income inequality as an incentive to productivity are studied. I use data from the World Values Survey to analyse the preferences of the Vietnamese for a market economy. The results of the inquiry show that people are more market oriented in the northern than in the southern regions of the country (though in both areas the population is rather in favour than contrary to pro-market reforms). Moreover some particular categories of workers (who perhaps are likely to benefit from the reforms) result to be more supportive of the transition than others. The data allow us to conclude that the doi moi is not at risk, but the population tends to contrast income inequality. Therefore the Vietnamese government has to pursue the process of renovation and of establishment of a marker oriented economy, but it must avoid the mistake of running too fast.
History is full of examples of enlightened governors whose policies were aimed at improving the lives of their citizens, but whose implementation was too fast and led to a counter-revolution. In order to ensure future people’s support to the doi moi process the government should pay more attention to the problem of income inequality and should adopt reforms which balance the need for renovation and growth and the people’s claim for a lesser (or slower) increase of income inequality. This could be a starting point for setting the agenda of the new economic reforms, although the secret of the Vietnamese success could be in the particular mix of private and public enterprises, and this, it is perceived by the population, could explain why the Vietnamese are in favour of regulation.
