Research On The Property Rights Reform Of Vietnam's State-Owned Enterprises

Vietnam's economic renovation and opening up were promoted and led by the Communist Party, from then Vietnam has greatly changed in various aspects, this has brought vitality to Vietnam's economic development. Under the strong drive of the new policy, the Vietnam's state-owned enterprises gained new achievements. However, through 20 years of reform, in general, the Vietnam's state-owned enterprises are still in distress and do not meet the requirements of the socialist market economy. Apart from some superficial reasons, there are deeper reasons which are the fundamental contradiction and shortcomings of property rights of the state-owned enterprises.In fact, the reform of property rights of Vietnam's state-owned enterprises is different from other countries around the world, because the Vietnam's state-owned enterprise reform is carried out in a special political and economic environment. Therefore, Vietnam's property rights reform of state-owned enterprises has great sensitivity and difficulty. It is not only economic issues but also the ideological, political, social and psychological problems. This has also made the Vietnam's economic research circle to avoid the property rights issue in some degree, and has this resulted to the issue of the property rights of Vietnam's state-owned enterprises are not being given enough attention. Because of this, most of the reform of state-owned enterprises did not touch the issue of property rights but in the framework of the state-owned system. As the gradual establishment and deepening development of the market economy system, the Vietnam's state-owned enterprise reform still has the double track economic characteristics: There is no distinction between government administration and enterprises management. Ambiguous property rights, responsibilities and interests are not clear, these lead to the slow pace of further development, even a considerable number of enterprises have yet to shake off the dilemma. On this premise a based on the aforementioned, this thesis look at the problems of the property rights reform of Vietnam's state-owned enterprises, the goal is to make a little contribution to the reform of the Vietnam's state-owned enterprises, and make the Vietnam's state-owned enterprises rapidly and steadily develop.This thesis follows the system tradition of Marxist theory, mainly adopts the research method of historical analysis and comparative method, first of all, using the method of logic and history which are unified. Reviews and discusses on the Vietnam's economic reform and the historical background of the reform of property rights of Vietnam's state-owned enterprises, puts forward the theory and practice's accordance of Vietnam's reform; Secondly, using the method of empirical analysis and normative analysis, analyses the process of property rights reform of state-owned enterprises and the present situation of property rights, reveals the shortcomings of the property rights system of Vietnam's state-owned enterprises, then points out that the key of the reform of Vietnam's state-owned enterprise is the property rights reform of state-owned enterprises; thirdly, using the comparative method, researches on the reform of state-owned enterprises of other countries in the world, and mainly analyses and compares with the reform of China's state-owned enterprises, so as to draw lessons and experiences for Vietnam, this will not help Vietnam's economic reform and property rights reform of state-owned avoid some setbacks, but also shorten the groping time on road that no examples is full of thorns; Finally, on the base of analysis of the present situation of property rights of Vietnam's enterprises and enlightenment of research on the reform of state-owned enterprises of other countries, this thesis proposes some basic theories and principles of property rights reform of Vietnam's state-owned enterprises and conceptions of reform of state-owned enterprises that coincide with Vietnam's national conditions and the needs of economic development of the times.This thesis consists of introduction and the main body, the main body is divided into six chapters. The main contains are as follows:Introduction mainly explains the reasons for choosing the issue of the property rights reform of Vietnam's state-owned enterprises as the theme of research; summarizes the results and shortcomings at home and abroad; The main research methods; the scope of the research, the arrangement of structure, innovation and inadequate.Chapter 1: Theories of property rights and property rights of state-owned enterprises. This chapter starts by the Western and the Marxist thoughts and theories about property rights, on the base of discussion on the basic concepts of property rights and property rights of state-owned enterprises, lays the basic theoretical foundation of property rights reform of state-owned enterprises.Chapter 2: Vietnam's economic reform - analysis of theory and practice. This chapter reviews the Vietnam's economic reform and opening up. The Democratic Republic of Vietnam carried out planned economic system in the early days after its foundation as China did. This traditional system gradually revealed its own shortcomings in the economic operation. Therefore, Vietnam started the comprehensive renovation and opening up from 1986 and the economic reform was the focus of the problem. There have been some great changes in the economic mechanism: change from a centralized planned economic system to commodity economy of various economic parts, which later changes to socialist-oriented market economy system. These are the prerequisite of Vietnam's reform of state-owned enterprises and the foundation of guiding direction, and decide the characteristics of the reform of state-owned enterprises. Chapter 3: The reform and development of Vietnam's state-owned enterprises. As the establishment, consolidation and development of traditional centralized planned economic system model, the Vietnam's state-owned enterprise system formed and developed rapidly. State-owned enterprises are very important components of the national economic system. They play a "leading" role, and are a factor that actively supports the socialist orientation. But in the shackles of traditional mechanisms, Vietnam's state-owned enterprises have exposed their inherent shortcomings, and now these inherent shortcomings still exist. Its setbacks are due to the system's interference in administrative orders which resulted to the state-owned enterprises not playing attention to the effects of their production, innovation and enthusiasm almost vanish. Life and death of the State-owned enterprises do not depend on the mechanism of market competition of "natural selection", but depend on bureaucracy. Higher-level units supervise all the process of sub-units'management and decision-making, and means of supervision is based on orders. Even taking the various forms of persuasion, debate, rewards and punishments, but their purpose is to compel the sub-units to obey the orders.Chapter 4: Analysis of property rights reform of Vietnam's state-owned enterprises - evaluation of structure and governance. Through the investigation on the reform of property rights of Vietnam's state-owned enterprises, the researcher observes that from the late 1970s to the early 1980s, there have been some adjustments in the property rights management of state-owned enterprises, but these adjustments merely improved and enhanced the management of micro-level, and merely rest on adjusting one aspect, one part or rest on some partly adjusting actions. These could not be seen as a fundamental and systemic reform, and the management model that characteristic of mandatory plans has not changed in the Central Committee. Thus, at this stage, the reform measures are of riding the fence and temporary. Although enterprises are allowed to establish their own funds, but the scale of fund and how to utilization are still determined by the country, and other decision-making power, such as what to produce, how to produce, how much to produce are still determined by the central government. Since 1986, with the comprehensive economic reform, Vietnam's property rights system of state-owned enterprises have great changes, but now there are still many problems and shortcomings: a highly centralized property rights; Unification of government and enterprises; Single of Residual Claim; the operation of corporate assets are detached from markets; the State bears unlimited risks and responsibility and among others. At present, Vietnam continues to reform its structure of property rights and management system of state-owned enterprises.Chapter 5: Property rights system reform and their enlightenment of state-owned enterprises of other countries. The experiences of reform of state-owned enterprises of other countries are of great significance to the reform of Vietnam's state-owned enterprises. From the experiences of privatization of the Europe's state-owned enterprises of developed countries to the adopting of the low-priced concessions measures for the transfer of ownership of state-owned to private of the former Soviet Union and East European countries. Especially through the discussion on the process and factors of success of reform of China's reform of the property rights of state-owned enterprises, from this, it could be observed that the success of China's reform of the property rights of state-owned enterprises could not be separated from "emancipating the mind and seeking truth from facts" theory. The decisive factors of China's prosperous economy are not the number of funds of investment, but the management and the effect of the funds. All of these provide useful lessons for reform and development of Vietnam's state-owned enterprises.Chapter 6: Conceptions of property rights of Vietnam's state-owned enterprises. To improve the effect of the property rights reform of state-owned enterprises, according to the status of property rights of Vietnam's state-owned enterprises that was mentioned in the former part of this thesis, by means of learning lessons from foreign countries to explore and establish a new property rights system of state-owned enterprises that is suitable for Vietnam's national conditions and the needs of economic development of the time. A few basic principles are summarized about the reform of state-owned property rights system and the establishment of a modern system of property rights of state-owned. Such as to reform under the prerequisite of insisting that the nature of state-owned economy which is also called the whole people-owned economy should not be changed; to establish a modern property rights system, it is necessary to grasp basic production relations in the state-owned enterprises that embodies the nature of the state-owned economy, scientifically to arrange the property rights and design the system according this production relations; Property rights reform of state-owned property rights must arrange property rights in accordance with the principle of symmetric composite of powers and interests, rights and responsibilities of property rights; Property rights should be clear and normative. Finally, this thesis proposes measures and policies of the construction of the property rights system of Vietnam's state-owned enterprises that coincide with the socialist-oriented market economy, and promotes a quicker and better development of Vietnam's socialist-oriented market economy.