Developing the state economic sector and ensuring it truly maintains a leading role is a consistent viewpoint of our Party in building a socialist-orientated market economy. Realities of 40 years of national renovation (Đổi Mới) have affirmed that this viewpoint is entirely correct and must continue to be thoroughly grasped and steadfastly realised. Nevertheless, hostile forces continuously step up their sabotage efforts in this regard. Therefore, combating and refuting hostile forces’ distortions is an urgent task, both for the immediate future and in the long term, in order to firmly safeguard the Party’s ideological foundation in the new era of development.
Developing the state economic sector and upholding its leading role within the socialist-orientated market economy is a core issue in the theory of the Đổi Mới policy - a constituent part of the ideological foundation of the Communist Party of Vietnam. This subject has also been put at the forefront of hostile, reactionary, and politically opportunistic forces’ sabotage strategy. They take full advantage of media outlets that are unfriendly to Vietnam, the Internet, and social media platforms (Facebook, TikTok, YouTube, etc.) to distort the truth. Using numerous sinister tactics, they aim to smear the Party’s policy on developing the state economic sector. Through such actions, they hope to cause confusions, ultimately leading to a decline in the faith of cadres, party members, and our people in the Party’s leadership.
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| State economic sector acts as a particularly important component of the socialist-orientated market economy (photo: baochinhphu.vn) |
The primary ploys and distortions
First, they vigorously deny the presence of the state economic sector within the socialist-orientated market economy, pitting the state economic sector and the market economy as opposing, mutually exclusive entities. They argue that a market economy must rely entirely on private ownership and that state or state-owned enterprise (SOE) intervention will “distort the market, hinder competition, and stifle development”. They further “exaggerate” the inefficiencies of certain SOEs in recent times, subsequently making the baseless claim that the state economic sector is only suited to a planned, subsidy-based economy; whilst in a market economy, it is merely a “burden on the economy”. Consequently, they “advise” Vietnam to “comprehensively privatise in order to utilise social resources more efficiently”.
Second, they deliberately deny the leading role of the state economic sector within the socialist-orientated market economy. This ploy is more sophisticated, as they acknowledge the presence of the state economic sector within the current multi-sectoral economic structure. However, driven by inherent prejudice and outdated thinking regarding the state economic sector and its leading role (such as equating the state economic sector entirely with SOEs, or assuming its leading role requires SOEs to be ubiquitous and “encompass” the whole economy), they trumpet that “the private sector, rather than the state sector, holds the leading role”. From this, they baselessly label the state economic sector’s leading role as merely an “ideological slogan” rather than a reality.
Third, they pit the policy of developing the state economic sector against the development of the private sector within the socialist-orientated market economy. They argue that: the 13th Politburo issuing Resolution 68-NQ/TW, dated 4 May 2025, on private sector development, viewing it as the most important driving force of the national economy, and subsequently issuing Resolution 79-NQ/TW, dated 6 January 2026 on developing the state economic sector and maintaining this sector’s leading role, represents a “contradiction in thinking and confusion in leadership and practical direction”. According to them, having encouraged the private sector as the most important driving force, the Party should not advocate developing the state economic sector or “expect” it to play a leading role.
They claim that implementing Resolution 79-NQ/TW will cause the state economic sector to “overpower” the private sector, dragging Vietnam back to the previous “subsidy” era. The true nature of this ploy is to deliberately fabricate an opposition between the state economic sector and the private sector within the socialist-orientated market economy, thereby denying the existence of the state economic sector altogether.
Broadly speaking, the aforementioned primary ploys and distortions are highly sophisticated and sinister, yet entirely false in both theory and practice. They must be resolutely combated and rejected by scientific and objective arguments.
Counterarguments
First and foremost, it must be affirmed that the presence of the state economic sector in a modern market economy is an objective necessity aimed at rectifying the “imperfections” of the market; it is not opposed to the market economy, nor is it a “burden” on the economy. This is a matter clearly proven by both theory and practice worldwide. Accordingly, the market is not always efficient, and the self-regulating market economy model is not the optimal economic model; the proactive and effective intervention of the State via the state economic sector (state budget, national reserves, SOEs, etc.) is a crucial, necessary measure to rectify market “imperfections” and ensure sustainable development goals.
The market economy chosen by Vietnam “is a modern, internationally integrated market economy, operating fully and synchronously in accordance with the laws of the market economy, under the management of the socialist rule-of-law State, and led by the Communist Party of Vietnam”. Therefore, the presence of the state economic sector within this economic model is entirely objective. It exists not only to overcome “market failures” as seen in other market economies worldwide, but also serve as a vital material force for the State to regulate major balances, maintain macroeconomic stability, promote economic development, ensure national defence, security, and social welfare, and uphold the socialist orientation of development.
Secondly, the leading role of the state economic sector in the socialist-orientated market economy must be clearly understood in accordance with the Party’s renewed thinking. Accordingly, the state economic sector is not identical to SOEs, nor does it solely consist of SOEs. Resolution 79-NQ/TW has clearly stated: “The foundation of the state economic sector comprises resources held, managed, and controlled by the State to implement socio-economic development goals, ensure macroeconomic stability, and consolidate national defence and security. These include: land, mineral resources, water resources, maritime zones, airspace, underground space, state-invested infrastructure projects, state budget, national reserves, off-budget state financial funds, SOEs, state credit institutions, state capital in enterprises where the State holds 50% of the charter capital or less, and public service providers”.
Based on this understanding, the leading role of the state economic sector in the socialist-orientated market economy is not viewed through the lens of dominating or “encompassing” the economy based on the number of SOEs, as was the case with outdated thinking; rather, it must lie in the state economic sector’s capacity to ensure macroeconomic stability and major economic balances, its ability to orientate development strategies, and to safeguard national defence and security. It must contribute to promoting cultural values, social progress and equity, and social welfare, serving as a crucial resource for the State to control, intervene in, and promptly respond to unexpected and urgent requirements.
During periods of intertwined shocks, such as supply chain disruptions, massive fluctuations in interest rates and exchange rates, trade wars, natural disasters, and epidemics, the state economic sector must play a role in stabilising essential markets, ensuring the provision of vital public utilities, and maintaining foundational investment and reserve capacities to respond promptly to systemic risks. Furthermore, the key role of the state economic sector must be manifested in its ability to lead innovation, master technology, implement standardisation in accordance with international norms; concurrently, it must act as a fulcrum to guide the development of the private sector.
With the aforementioned new perception, Resolution 79-NQ/TW affirms: “…after nearly 40 years of Đổi Mới, the state economic sector has consistently maintained a leading role, successfully performing its functions of orientating, guiding, and regulating economic activities. This has contributed to promoting growth, guaranteeing macroeconomic stability, maintaining major economic balances, ensuring national defence and security, fostering social progress and equity, and elevating the people’s living standards and Vietnam’s position in the international community.”
Numerous SOEs, particularly major corporations, are operating efficiently, ensuring major balances, stability, and macroeconomic regulation, and executing medium and long-term strategic tasks directly linked to energy security, financial and monetary security, telecoms security, essential infrastructure, and key economic domains. Notable examples include Vietnam Electricity Group (EVN), Vietnam National Industry and Energy Group (PVN), the four state-owned commercial banks (Vietcombank, Vietinbank, BIDV, Agribank), Military Industry and Telecoms Group (Viettel), Vietnam Posts and Telecoms Group (VNPT), and Saigon Newport Corporation.
During the 2008 global financial crisis and Covid-19 pandemic, when the private sector tended to contract to preserve capital, SOEs served as the vanguard in production and business. They acted as the pillar in securing the goods supply chain, stabilising prices, maintaining essential production, and carrying out public utility tasks that the private sector was either unable or unwilling to undertake. The state-owned commercial banking system has consistently played a primary role in providing capital for the economy, accounting for approximately 50% of the system-wide credit market share. Not only does it guide interest rate levels, but it also implements preferential credit policies and supports liquidity for the entire banking system during the most challenging periods.
These realities have refuted the rhetoric that considers the state economic sector merely a “burden” on the economy, or claims that the leading role of the state economic sector “is just an ideological slogan, with no basis in reality”.
Thirdly, the policy of developing the state economic sector and maintaining its leading role does not contradict or oppose the policy of developing the private sector within the socialist-orientated market economy, nor does it hinder the development of the private sector. This is because the Platform for National Construction in the Period of Transition to Socialism (supplemented and developed in 2011) stipulated: “Developing a socialist-orientated market economy with diverse forms of ownership and various economic sectors... All economic sectors operating in accordance with the law are vital constituent parts of the economy, equal before the law, developing together in the long term, cooperating and competing healthily with one another”.
Resolution 79-NQ/TW also determines: “The state economic sector is equal before the law with other economic sectors, co-developing in the long term, cooperating and competing healthily, having fair, open, and transparent access to resources, markets, and development opportunities, joining domestic economic sectors in building an independent, self-reliant, and resilient economy, ensuring economic security, and promoting intensive, substantive, effective international integration”.
Steadfast in that viewpoint, based on the summary of 40 years of Đổi Mới, the 14th National Party Congress advocated: “Developing the state economic sector efficiently, truly maintaining its leading role in ensuring macroeconomic stability, major balances, and strategic orientation and guiding the economy, as well as developing the private sector as the most important driving force of the economy”.
With a new acknowledgement of the leading role of the state economic sector, Resolution 79-NQ/TW does not focus on expanding the scale of the state economic sector, but rather enhancing this sector’s efficiency and guiding capacity; it advocates restructuring the state economic sector so that SOEs concentrate solely on key, foundational industries and fields, or those directly related to national defence, security, macroeconomic stability, and economic security, such as: energy, transport infrastructure, finance and banking, telecoms, and a number of other strategic sectors. In areas where the market operates efficiently, SOEs do not have to maintain a dominant role, thereby creating space for the development of the private sector.
For this reason, the policy of developing the state economic sector and maintaining its leading role under Resolution 79-NQ/TW does not oppose or contradict the policy of developing the private sector under Resolution 68-NQ/TW. It does not “overpower” the development of the private sector, as distorted by hostile, reactionary, and politically opportunistic forces; on the contrary, it “serves as a ‘supporting platform’, ‘paving the way’ and ‘empowering’ private enterprises to participate more deeply in the value chain...”.
The rapid development of our country’s private sector in recent times, both in quantity and quality, clearly demonstrates this fact. From facing numerous development limitations, the private sector now boasts nearly 1 million active enterprises and over 5 million business households, contributing approximately 50% to the GDP, over 30% of total state budget revenue, and employing around 82% of the total workforce for economic growth and job creation, becoming one of the crucial driving forces of the socialist-orientated market economy. Many private enterprises have grown robustly, affirming their brands and reaching out to regional and global markets, such as: Vingroup, Sun Group, TH Group, Vinamilk, Vietjet, etc. This serves as compelling evidence that refutes all erroneous arguments and distortions.
Correctly perceiving the role of the state economic sector and combatting distortions of the Party’s stance on this sector’s development are two fundamental and urgent tasks in safeguarding the Party's ideological foundation today. To effectively combat false arguments on this matter, it is necessary to step up propagation and education efforts to raise awareness amongst party members and people from all walks of life regarding the contents of Resolution 79-NQ/TW, especially its core principles and novel points. On that basis, successfully realising the guiding viewpoints and primary solutions set out by the Resolution will contribute to raising the efficiency of the state economic sector, ensuring it truly maintains a leading role in the socialist-orientated market economy in our country.
NGUYEN NGOC HOI