Topic of the thesis: The role of State in Vietnam's economic growth

Major: Development Economics Code: 62 31 01 05

Ph.D. Student: Vu Hai Nam

Supervisor: Ass. Prof., Dr Mai Van Buu and Dr Vu Van Thai

Training institution: Development Strategy Institute, Ministry of Planning and Investment

1. New academic, theoretical contributions

The thesis shows factors (political institution, economic institution and market) determining State's role in economic growth. Besides, the thesis confirms that enterprise determines economic growth but State (especially, the head of state agencies and organizations) determines the development of enterprise. Thus, research on State's role in economic growth is done through research on State's role in enterprise development. The thesis recomned 05 main indicators and 05 supplemental indicators evaluating State's role in economic growth in Vietnam.

2. New findings, recommendations drawn from research results, surveys of the thesis

The thesis shows that during the period of 2001-2012, the State's role in Vietnam's economic growth is still weak, causing low effective and unstainable economic growth, below the country's potentials. Moreover, many inadequate policies such as monetary policy, exchange rate, tax, accumulation and consumption... has been adjusted slowly and there are low effective administrative procedure, causing great difficulties for enterprise development and economic growth. Also, the thesis suggests two main group of measures to upgrade the State's role in Vietnam's economic groth towards the year of 2020. In which, it emphasizes the need of strategy formulation for enterprise development, attraction of transnational economic corporation to Vietnam; especially the establisment of Vietnam's great and global corporations as well as suggests measures for participation of Vietnam's enterprise in value chain and global distribution network. It is also essential to upgrade the level of state administration and international cooperation.

The thesis suggests the establisment of the organization that can evaluate development policy, quality of green growth and national competiveness. Besides, it is neccesary to renew statistical field with the motto of not only considering on the number of indicators and quantitative indicators but also paying much more attention on qualitative indicators.

INTRODUCTION

1. The necessity of thesis

Pratical assessment on State's role in economic growth in Vietnam has some unclear aspects with respect to theory and reality. In the process to find out the measures for sustainable, efficient and fast growth of our economy, in the context of socialist oriented market economy, State's role and implementation of its role in sustainable economic growth is not clarified. All of officials, managers and sicientists have paid much attention on three "bottlenecks", namley poor infrastructure, weak human resource and inadequate institution, and have not show directly the role and the responsibility of the State to the weakness of economy.

Economic growth is not an entity but it is the result of enterprise development. In other words, enterprise development will plays a crucial role in economic developemt and economic growth. If whether, the State's role in economic growth means the State's role in enterprise development to ensure sustainable and efficient economic growth. The matter has not been researched statisfactorily.

Recently, some scholars in the world have made effort to find the solutions to bring the global economy out of the financial crisis and global recession. It is said that the success or the failure of each country depends on the institution (economic institution and politicial institution). They has emphasized that the State (with economic institution) plays a crucial role in economic developemt and economic growth. Thus, in the process of economic restructuring, countries in the world reform the State, innovate the economic developemnt orientation and adjust economic policies. Initially, these countries has achieved success.

In the context, the author has chosen the subject "The role of State in Vienam's economic growth" for his PhD thesis.

2. The purposes and meaning of the research

2.1. In term of theoretical issues: The purpose of the thesis research is to clarify the basic issues of theory of State's role in economic growth in the socialist oriented market economy in Vietnam. The thesis clearly shows the State's role in enterprise development for economic growth and confirms that political institution, infrastrucuture and market ares important factors affecting the State's role in economic growth. The author suggests the evaluation indicators of the State's role in economic growth in the context of Vietnam's economy.

2.2. In term of practical issues: The thesis shows that during the period of 2001-2012, the State's role in Vietnam's economic growth is still weak and many inadequate policies has been adjusted slowly, causing great difficulties for enterprise development and low quality of economic growth. Also, the author suggests two main group of measures to upgrade the State's role in Vietnam's economic groth towards the year of 2020. In which, he emphasizes the need of strategy formulation for enterprise development and attraction of transnational economic corporation to 2

Vietnam as well as suggests measures for participation of enterprise in value chain and global distribution network. It is also essential to upgrade the level of state administration and international cooperation.

3. The object and scope of the research

3.1. The object of research

The object of research is State's role in economic growth in Vietnam in term of the theoretical issues and the practical issues. Economic growth is a direct achievement of the enterprise development, thus the author links the research of State's role in economic growth with the development of enterprise.

3.2. The scope of research

- In terms of time: The situation in the period of 2001-2012 and the next period towards the year of 2020;

- In term of space: The whole Vietnam's economy;

- In term of scientific issue: The thesis researches the State of Vietnam, State's role in economic growth in the condition of the socialist oriented economy market, the factors affecting on the role of State to economic growth and the indicators evaluating State's role in economic growth in our coutry.

4. The theoretical framework

Figure 1: Mind map in State's role in economic growth

The theoretical framework shows sicientific tasks need to be done to acheive the thesis target: 3

(1)- Clarifying the crucial role of the State to economic growth in the context of the socialist oriented economic market developmentin Vietnam. What is its connotation? What is crucial factor affecting directly economic growth? If whether, these are State and enterprise?.

(2)- Clarifying State's role in economic growth in the current period and in the next period in Vietnam. To take this role, what the State does and renovate its roles?.

(3)- Clarifying basic measures to upgrade State's role in economic growth in the period of 2013-2020.

5. Approach and research method

Frow the target research and the theoretical framework, the author approaches the research object and selects the research method as detailed below:

5.1. Approach method

His approach is from the theory to the analysis of situation on the implementation of State's role in economic growth in order to make recomendations to improve State's role in sustainable and efficient economic growth towards the year of 2020. Concretely speaking, the author starts with the clarification of the basic theory of State, State's role, factors affecting State's role in economic growth in the background of Vietnam's situation. On the base of that, the author analyses and assesses the situation of the implementation of State's role in economic growth and puts forward basic solutions to upgrade State's role in sustainable and efficient economic growth in the next period. When the author analyses State's role in economic growth, he considers enterprise as a cell of the economy and the enterprise role in economic growth and development.

5.2. The research method

To finalize the thesis, the authors applies a lots of sicientific research methods in the field of management and economics. Additionally, the author applies viewpoints and theories of philosophy, political economics and sociology. The main research methods include: synthesize analysis, statistical analysis, comparision method, policy analysis, practical investigation, forecast, graphs. Moreover, in some cases, the author applies below methods: statistical classification, demonstration, rejection, dialectical method, deduction and induction. The statistical classification method is applied in the general part. The application of other methods (demonstration, rejection, dialectical method, deduction and induction) allows the analysis of situation and recommendation of solutions.

6. Scientific contribution of the Thesis

- Propose the theory framework to clarify State's role in the enterprise development to enhance the quality of growth in the context of the socialist oriented market economy. On the base of the framework, the author clarifies the basic theoritical matters on State's role in enterprise development and economic growth, and the linkages between enterprise development and economic growth, namely: State 4 implements economic institution, three "P" mechanism (input distribution, out allocation and enterprise coordination) and economic governance; therefore, the author puts forward the system of indicators to evaluate state's role in economic growth.

- Apply the proposed indicators, the thesis clarify the achievements, the weaknesses and the reasons in anlaysing the situation of State's role in enterprise development and economic growth in the period of 2011-2012.

- Propose the measure for renovation of orientation in building a rule-of-law state in Vietnam and improvement of State's role in enterprise development (especially economic corporations and transnational corporation to Vietnam) for economic growth. Also, the author puts forward the orientation on finanlizing the economic institution, economic policy (emphasizing the solutions for "in put" allocation machanism and "out put" distribution policy), the development of nation information system for enterprise and the innovation of dialogue mechanism between State and enterprise.

7. Structure of the Thesis

Apart from the introduction, the inclusion and the general recomendation, the Thesis consists of three chapters:

Chapter 1. The general overview of the reseach papers relating to the topic of the thesis

Chapter 2. The theoretical and practical issues regarding State's role in economic growth

Chapter 3. The situtation of State's role in economic growth in the period of 2001-2012