Establishment and improvement of market economy system (EIMES) for state capacity and sustainable development in Vietnam

Acknowledgement 14Executive Summary 21Economic System for Vietnam: Social Welfare System 21 CHAPTER ONE: Developmental Gap between Vietnam and Korea Ⅰ. Introduction 38 Ⅱ. Measuring the Developmental Gap 40 1. Developmental Gap in Terms of Income 40 2. Developmental Gap in terms of Export Structure 41 3. Policy Implications for Vietnam 45III. The Vietnam Economy and the MIT 52V. Conclusion 56CHAPTER TWO: Economic System for Vietnam: Social Welfare SystemⅠ. Introduction 60 1. Background 60 2. Conceptual Framework 62 Ⅱ. Current Standing in Vietnam 64 1. Aggregate Dimension (Assoc. Prof. Dr. Bui Van Huyen) 64 2. Institutional Dimension: Social Welfare System in Vietnam 69 3. Current Issues for Vietnam’s Social Welfare System 80 Ⅲ. Korea’s Social Welfare System (Prof. Jin Park, Daemyeong Kwon) 91 1. Aggregate Aspect 91 2. Institutional Aspect 95 Ⅳ. Current plan for the Social Welfare System in Vietnam 117 1. Poverty alleviation 117 2. Old-age:Pension and other Old-age Assistance 120 3. Health: National Insurance and Health Care 122 4. Work: Unemployment Insurance and Worker’s Compensation 126 Ⅴ. Vietnam’s Vision and Reform (Prof. Jin Park and Dr. Phan Thi Song Thuong) 127 1. Aggregate Reform 127 2. Institutional reform 153 Ⅵ. Conclusion 137CHAPTER THREE: Indentifying and Promoting Sound Economic Policies for Growth and Financial Market Development Ⅰ. Introduction 140 Ⅱ. Evaluating the Current State of the Vietnamese Economy and Financial Markets 142 1. Issues in Capital Market Liberalization 142 2. Issues in Domestic Financial Markets 158 3. Issues in Monetary Policy and Macroprudential Policy 183 4. Other Issues of Monetary and Macroprudential Policy 200 5. Summary 205III. Capital Market Liberalization 207 1. Arguments for CML, Their Weaknesses, and Some Myths 207 2. Prerequisites for CML 209 3. Experiences of South Korea 210IV. Financial Resource Allocation 223 1. Arguments on the Government Ownership of Banks and Empirical Evidence 224 2. Experiences of South Korea 228V. Policy Recommendation 239 1. Macroprudential Policy 240 2. Making the Most Effective Use of Foreign Capital 246 Ⅵ. Conclusion 248CHAPTER FOUR: Enhancing the Industry Ecosystem in VietnamI. Introduction 252II. Enhancing the Competitiveness of State-Owned Enterprises 254 1. Vietnam’s State-Owned Enterprise System and Equitization 254 2. Korea’s Experience 268 3. Policy Suggestions for Vietnam 287III. Enhancing the Industrial Competitiveness 296 1. Vietnam’s Industrial Competitiveness 296 2. Korea’s Experience 302IV. Fostering a Level Playing Field and Fair Competition 329 1. Vietnam’s Competition Law and Institutions 329 2. Korea’s Experience 330 3. Policy Suggestions for Vietnam 336V. Conclusion 340 CHAPTER FIVE: Sustainable Welfare for Labor Market: Labor Flexibility and Employment Protection I. Introduction 344 1. Overview 344 2. Research Questions 346II. Conceptual Framework 348 1. An Overview 348 2. Concepts of labor flexibility 351 3. Issues for labor flexibility in Vietnam 355III. Labor Market Policy in Vietnam: Labor flexibility 362 1. Current Standing in Labor Market Policy 362 2. Public sector 364 3. Private sector 364IV. Experiences of South Korea 377 1. Brief history on labor market policy. 377 2. Current standing and discussions 390 3. Labor Market Characteristics in South Korea 396V. Policy Recommendations 408 1. To-be: mid-term, long-term 408 2. Long and Short Term Strategies 412Ⅵ. Conclusion 415 Appendix 420 References 431

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