ABSTRACT
The purpose of this paper is to examine complex questions on the relations between ownership, performance and managerial incentives and draw implications for transition strategies in Viet Nam, by conducting empirical analyses drawn from a survey of 200 manufacturing enterprises in Viet Nam. Viet Nam’s experience in state enterprise reform is unique in several aspects: (1) official statistics indicate that the state enterprise sector is a major contributor to the rapid growth in industrial production; and (2) Viet Nam, like China, has been cautious about implementing a program of large-scale privatization. Instead, priority has been placed on expanding managerial autonomy of enterprises and hardening the budget constraint on state-owned enterprises.
