Restructuring of state-owned enterprises – The drive to the restructuring of the economy

Abstract

State-owned enterprises are always a key object of both theory and practice in the Vietnamese socialist-oriented market economy. In the past few years, state-owned enterprises have played an important role in the economic development of Vietnam. They have had a strong growth and constant innovation, meeting better the requirements of economic development and integration. However, in the last years, state-owned enterprises are faced with difficulties and challenges: many enterprises are inefficient in operations and management and suffer from a high amount of bad debts. This paper presents the theoretical basis of the existence, development and role of state-owned enterprises in the Vietnam’s socialist-oriented market economy, analyzes and assesses the accomplishments, shortcomings and limitations of Vietnamese state-owned enterprises in the economic transition period as well as proposes solutions to boost the restructuring process of state-owned enterprises which is a drive to restructure the economy in the manner of enhancing quality, efficiency and competitiveness of the economy.