HANOI – Nguyen Si Dung, former deputy head of the National Assembly Office, has urged the adoption of the “enabling State” model of nurturing development and better serving the people to help Vietnam prosper, as it has done for other Asian countries, rather than the interventionist model currently in use, which works better for the United Kingdom and the United States due to differences in culture.

Dung was speaking at the Vietnam Reform and Development Forum 2019, under the theme “Vietnam – Aspiration for Prosperity: Priorities and Actions,” held in Hanoi today, September 19.

With the abandonment of the centralized planning model, there are only two other models left for Vietnam: the enabling government and the interventionist government, according to the former official.

In the past, the enabling State models, such as those used by China, South Korea, Japan and Singapore, have been widely discussed in Vietnam. “However, we are acting according to the interventionist government models of the United Kingdom and the United States. Our State increasingly depicts an adjustment model,” he said.

He noted that if Vietnam follows the interventionist State model, the country will fall into the middle income trap as the cultural characteristics of Vietnam are different from those of the United Kingdom and the United States.

Vietnam has already switched from a centrally planned economy to a market-oriented one, so the enabling State model is more appropriate as it is a transitional model, he explained.

“In this model, the role of the State in policy planning is crucial. China has followed this model, and its development is like a storm,” he stated.

“Since Vietnam is a country with the cultural background of Northeast Asia, the enabling State model may be optimal for Vietnam,” he stressed.

The Party and the State have set out on the path of industrializing the country and have recognized the market system, but it still attaches importance to the State’s management role.

The choice of the enabling State, according to the ex-official, has brought about development and prosperity for many countries.

“This is undeniable. As local firms are facing difficulties in doing business, this may be a vital method and a more appropriate choice for our country,” he added.