The relationship between government, market and enterprises in Vietnam

Abstract

This article analyses the reality relationship among government, market and enterprises in Vietnam in the period of 1996-2012. We find out that: (i) the effectiveness of government indicators such as ease of doing business index, the economic freedom index, the government effectiveness indicators (belong to the governance indicators) improved considerably overtime but have not reached the average level of the world; (ii) the relationship between government and enterprises has not been clear-cut. As a result, though many reforms have been conducted, state owned enterprises still take up a high percentage in many industries and enjoy multiple preferential polices while operate inefficiently. This articles also points out the reasons of the situation and gives some recommendations for solving those problems.