1. The Role of Government
• By this measure, Vietnam falls short relative to its regional counterparts.
Political power resides unequivocally with the Communist Party, giving the
nation the superficial appearance of a strong central government.
• However, when it comes to managing the economy, power is decentralized or
split among the various provinces and local municipalities.
• The economic objectives or development strategies of the provinces, in many
cases, differ or run counter to the goals of the central government, resulting in
the misuse or waste of scarce resources. In this environment, implementing
five-year industrial-development plans, standardizing investment regulations,
managing the nation's money supply, and coordinating other macroeconomic
policies is difficult and cumbersome .
• In short, Vietnam, much like China, lacks an effective functioning national
government capable of guiding and managing the economy. Yet a strong
central government was a key ingredient behind the economic takeoff of
nations such as Singapore, South Korea, and Taiwan