General Secretary To Lam and the Party Central Committee have resolutely pursued the revolution to streamline Vietnam's political system. VietNamNet is publishing a series of interviews with experts to suggest solutions for this significant reform.

In this discussion, VietNamNet speaks with Associate Professor, Doctor of Science Vo Dai Luoc, former Director of the Institute of World Economics and Politics.

General Secretary To Lam and the Party Central Committee are committed to carrying out a “revolution” to streamline the political system, following the assertion that “The structure of our political system is still fundamentally based on a model designed decades ago, which in many aspects is no longer compatible with new conditions and contradicts the rules of development.” As a researcher, how do you perceive these actions?

Vo Dai Luoc: Since the early 1990s, the Soviet Union and Eastern European countries transitioned away from their old models. This allowed those nations to achieve remarkable development. Here, we are specifically discussing the management system model.

China, on the other hand, adopted socialism with Chinese characteristics, while Vietnam pursued a socialist-oriented market economy. Both maintained political systems that closely resembled their earlier structures, albeit with some adjustments over time.

China’s model has delivered exceptional development over the past few decades, but it now faces significant domestic and international challenges. Economic growth has dropped from the previous 9–10% to 5%, or even lower. I understand that some voices in China are advocating for a shift to a new model because the current one has become inadequate.

In Vietnam, we are also facing major developmental challenges, especially since the Doi Moi (Renovation) period. This makes the current “revolution” in the political apparatus highly urgent, and it is being pursued with great determination by the Party and State leadership. However, this effort will also require changes in mindset and developmental perspectives.

After Doi Moi, Vietnam undertook several reforms of its political apparatus. For example, at the 8th Central Committee Conference of the 7th Party Congress on January 16, 1995, there were strong directives for merging and downsizing. Could you reflect on that period of reform?

Vo Dai Luoc: At that time, Vietnam’s political structure was modeled after the Soviet Union. Decisions on what to produce, how much, who would receive the goods, how they would be distributed, and at what price - all these were entirely dictated by the State.

A centrally planned economy required a vast number of ministries and departments to operate. For instance, we had the State Pricing Committee, the Ministry of Domestic Trade, the Ministry of Foreign Trade, the Ministry of Light Industry, and the Ministry of Heavy Industry, among others.

For example, the Ministry of Foreign Trade handled exports - where to export, what to export, and how much. The Ministry of Domestic Trade planned how much rice each sector or province would produce and how much pesticide they would be allocated. Heavy industry development was prioritized under the Ministry of Heavy Industry.

After the 6th Party Congress, as Vietnam transitioned to a market-oriented economy, these agencies lost their roles and functions, leading to their downsizing and mergers. The Ministry of Domestic Trade and Ministry of Foreign Trade were first merged into the Ministry of Trade, which later merged with the Ministry of Industry to form the Ministry of Industry and Trade. Today, only the Ministry of Industry and Trade remains.

Were there any challenges during these mergers?

Vo Dai Luoc: The 6th Party Congress introduced the Doi Moi (Renovation) policy, while the 7th Party Congress outlined specific measures to implement it. At the time, the spirit of renewal was overwhelming, and reform-oriented thinking dominated, so there was little opposition.

To carry out reforms, General Secretary Do Muoi and Prime Minister Vo Van Kiet frequently consulted with experts in economics, foreign affairs, and national security. Both leaders were open-minded and eager to learn. They sought to harness collective intelligence and then made decisions. For example, reforms in streamlining the system, restructuring state-owned enterprises, and building the 500kV power line all involved expert consultation before decisions were made.

How do you view the current “revolution” to streamline the political system?

Vo Dai Luoc: Looking back, General Secretary Truong Chinh courageously abolished the subsidized economic management system to initiate Doi Moi. General Secretary Nguyen Van Linh carried on this spirit, and General Secretary Do Muoi implemented reform policies to lay the foundation for the transition to a market economy.

Today, General Secretary To Lam and Prime Minister Pham Minh Chinh are creating new hope. I believe these leaders are working within an urgent national and global context. They are practical, determined, and capable of rallying the system to press for renewal, demonstrating fresh development-oriented thinking.

Streamlining the apparatus and merging ministries are critical steps. However, it is equally important to clearly define the roles of the state and the market, eliminating the “ask-give” mechanism to establish a modern, suitable legal framework. This would ensure that businesses and citizens have the constitutionally guaranteed freedom to conduct business.

General Secretary To Lam stated that “institutions are the bottleneck of bottlenecks.” What is your assessment of this institutional reform pressure?

Vo Dai Luoc: This observation is entirely accurate and addresses the heart of the issue. The World Bank has also pointed out that Vietnam’s biggest obstacle is its institutional framework. I’ve written recommendations to the relevant authorities emphasizing the need to remove this bottleneck to enable the country to take off.

As someone who served as an advisor to Prime Minister Do Muoi and a member of the advisory teams for Prime Ministers Vo Van Kiet and Phan Van Khai, I’ve observed many limitations in Vietnam’s legislative process that need to be addressed.

The Party Central Committee and the Politburo outline policies and guidelines, based on which the Government and National Assembly draft and pass laws. However, these laws often take the form of framework laws or general laws, with numerous conditions that make them difficult to implement immediately.

At the decree level, where ministries and agencies specify the laws, there can be embedded business conditions that, if not approved by the Prime Minister, find their way into circulars. Below circulars, there are additional directives and notices, many of which are arbitrary but still require compliance from businesses and citizens.

Furthermore, legal documents often conflict with one another, creating confusion. Following one law may comply with it but contradict another.

As a result, many well-intentioned policies and properly designed laws fail to achieve the desired effectiveness.

Tu Giang - Lan Anh

Part 1: Vietnam’s political streamlining: Attracting talent to lead the way

Part 2: Vietnam must transition to three-tier governance, experts advise

Part 3: Reducing National Assembly deputies: A step toward efficiency and quality

Part 4: Vietnam’s National Assembly reform: Balancing expertise and efficiency

Part 5: Institutional reform: Paving the way for Vietnam’s growth and prosperity