ABSTRACT
State-owned enterprises (SOEs) assume important roles in various countries, including developed, emerging, and low-income economies. In Viet Nam, SOEs have endured even in the midst of the country’s transition from a central planning regime. Their presence is reflected in their large number, their major shares in various sectors, as well as their more likely intervention in the policymaking process compared with their counterparts in the private sector. Unless the SOEs undertake a public service task or are state-designated monopolies in certain markets, their decision should be based on commercial criteria such as price, quality, availability, marketability, and transportation. In 2005, the laws on enterprises were unified into a single Enterprise Law, and the laws governing investment activities were amalgamated into a common Investment Law. Competition is another area where practical oversight over SOEs differs from what are written in the laws and regulations.
