Socialist-oriented market economy

The socialist-oriented market economy (Vietnamese: Kinh tế thị trường theo định hướng xã hội chủ nghĩa) is the official title given to the current economic system in the Socialist Republic of Vietnam. It is described as a multi-sectoral market economy where the state sector plays a decisive role in directing economic development, with the eventual long-term goal of developing socialism.

The socialist-oriented market economy is a product of the Đổi mới economic reforms, which led to the replacement of the centrally-planned economy with a market-based mixed economy based on state-owned industry. These reforms were undertaken to allow Vietnam to integrate with the global market economy.

The Doi Moi economic reforms were initiated by the Communist Party of Vietnam in 1986 during the party's 6th National Congress. These reforms allowed for private ownership of small enterprises alongside state-run and collectively-owned enterprises. Additionally, these reforms also introduced a greater role for market forces for coordinating economic activity between enterprises and government agencies.

The economic reforms aimed to restructure the Vietnamese economy away from Soviet-type central planning and towards a mixed economy intended to be a transitional phase in the development of a socialist economy. The goal of this economic system is to improve the productive forces of the economy, developing a firm technical-material base for the foundation of socialism, and to enable Vietnam to better integrate with the world economy.

The socialist-oriented market economy is a multi-sectoral commodity economy regulated by the market, consisting of a mixture of private, collective and state ownership of the means of production. However, the state sector and collectively-owned enterprises form the backbone of the economy. It is similar to the Chinese socialist market economy in that many forms of ownership, including cooperative/collective enterprises, communal, private and state ownership models co-exist in the economy; but the state sector plays a decisive role.

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