Vietnam should dump communism

Capitalism may not be the perfect way of organizing resources and ensuring their equitable distribution, but when individuals are protected by a sound and independent legal system, most people will agree that it is probably the best economic form mankind has come up with to date.

Vietnam's communist leaders, however, believe they can do better.

While the cadres in Hanoi have abandoned their former Marxist orthodoxy that demanded rigid control of all aspects of the market -- a policy that left Vietnam one of the poorest countries in the world -- they remain committed to socialism, state control of the economy and one party rule.

Last week, they unveiled a 56 page document that is being viewed as the party's blueprint for the transformation of Vietnam into an industrialized country.

The document was drawn up by the policy-making Central Committee for submission to a nationwide party congress expected to take place in June.

It highlights the party's suspicion of foreign investors and it's determination to maintain the dominance of state companies in the economy.

The document says party cells should be set up in all foreign joint venture companies. It stressed repeatedly the need to combat the influence of 'capitalist-style democracy' and vowed the party would not stray into capitalism.

It gives no hint, however, that Hanoi believes there will be a trade-off in poorer economic performance should the party maintain its leading role in the market.

A centralized economy simply cannot compete with the cut and slash world of the capitalist market. And no communist government anywhere has yet established the rule of law and climate of predictability that businesses require for serious long-term investment.

Sooner or later, Vietnam, will have to choose between its hope for rapid development based on international investment and its fear of foreign ideological pollution.

-- The Nation, Bangkok