Economic reform and entrepreneurship in Vietnam: A policy perspective

Abstract

Vietnam, with a transitional economy, has been emerging as a theoretically rich context for researchers over the last few decades. Painful reforms have been undertaken in the country to transform the rigid central planning apparatus into a market economy, breaking the long standing barriers to the private sector and SME development. In this context, entrepreneurship has become an essential driving force of economic development. Shifting from a de-entrepreneurship to pro-entrepreneurship stance, a more supportive policy setting has cultivated the quest for prosperity among businesses, grounding on a more levelled playing field for all, old and new, economic sectors. This chapter aims at portraying entrepreneurship development in Vietnam embarking on a policy perspective. First, it examines the impact of doi moi, or economic reform process, which was triggered in 1986, and more generally the transition process of the Vietnamese economy which has subsequently changed the overall entrepreneurial setting in Vietnam. Next, it presents a closer look at the characteristics of the Vietnamese entrepreneurs as well as entrepreneurship in the country. Following is the discussion on the impact of policy on entrepreneurship development, detailing how policy changes have underpinned entrepreneurial growth in Vietnam since the country’s reunification in 1975. Finally, the chapter concludes with a view on the future of entrepreneurship in Vietnam.