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Industries of Vietnam are in a phase of transition between planned and market-based that may lead to transformation of enterprises to market-oriented organization, incentives and institutions or adjustment of indeterminacy and medium-run enterprise under essentially unstable internal and external conditions. The study evaluates the enterprise reform in the current context of Vietnam's market-oriented transformations process.

Vietnam's market reform process and the adoption of economic institutions that have also fueled rapid economic growth and industrialization in the dynamic ASEAN economies (DAEs) have reversed the decades of growing divergence between it and the DAEs. Nevertheless, a fundamental dichotomy or 'transitional gap' between Vietnam and the DAEs remains. This is partly an outcome of Vietnam's resistance to adopt two other crucial components of the DAEs' experience: robust private sector development and export-oriented industrialization. Vietnam can accelerate convergence, however, if it pushes forward critical institutional reforms, particularly in the areas of private sector development, export promotion and domestic competitiveness., For more than a decade, Vietnam has experimented with market reforms to renovate its centrally-managed economy. As part of this process--and reflecting the shifting post-cold war world order--it has also [...]