What Makes Socialism So Superior That Mr. To Lam Is Determined to Build It?
When General Secretary To Lam proposed that Hanoi pilot a "socialist commune or ward," it was not a casual remark but a directive—and a policy.
Hanoi decided to select two wards, and Lao Cai, a mountainous province, also chose two grassroots units for the pilot. Hai Phong did not select a specific locality but implemented it on a broader scale, aiming to build socialism associated with socialist people.
"We must start at the commune level as a pilot, then scale up, continue, and even at a higher level of development, there will be socialist provinces or cities," said Politburo member Doan Minh Huan, Director of the Ho Chi Minh National Academy of Politics, in his concluding remarks at the seminar "Building Socialist Communes and Wards in the New Development Era – Theoretical and Practical Issues" held on May 21.
Since the 1986 Doi Moi (Renovation), market economic thinking, a fundamental feature of capitalism, has developed quite deeply and broadly in Vietnam, transforming a war-torn country into a dynamic regional economy. Yet throughout nearly four decades, there has been a "red thread": the socialist orientation.
In the Doi Moi 2.0 era, General Secretary To Lam seems determined to turn socialism from an ideology into an action program.
So what makes a model that most of the world shuns still worth pursuing?
From 'Advance Quickly, Advance Strongly' to 'Transition Period'
[Image: cyclo in April 1986 in Hanoi, Vietnam] Credit: Getty Images. Caption: Hanoi streets in April 1986.
The Socialist Republic of Vietnam is in a race to achieve what the Party's theorists believe "according to the law of historical evolution, humanity will inevitably progress to socialism."
This law was enshrined in the 1991 Platform for National Construction in the Transition Period to Socialism—a document that set Vietnam's path at the time when the socialist system in Eastern Europe and the Soviet Union collapsed.
Vietnam's leaders still believe that advancing to socialism "is consistent with the historical trend," but requires a transition period.
During that period, the Party allowed a market economy—a feature of capitalism—but to avoid deviation, it needed a "socialist orientation." In a regime where the Communist Party of Vietnam is the sole leading force, the goal of building socialism seems an inevitable choice.
After Vietnam's reunification, the National Assembly renamed the country the Socialist Republic of Vietnam in July 1976. The Communist Party held its 4th Congress in December 1976 with the slogan: "The whole country advances quickly, strongly, and steadily toward socialism."
To begin building socialism, the government carried out a series of industrial and commercial reforms, starting with the Chinese capitalist class and expanding to other enterprises. As a result, the market economy in the South was completely abolished, and the planned economy—a hallmark of socialism—took over.
Until the 5th Congress in 1982, the slogan still expressed determination: "All for the socialist fatherland, for the happiness of the people."
But that led to crisis.
A series of economic management mistakes created crises. Production stagnated due to lack of raw materials and markets, while inflation skyrocketed. 1985 and 1986 saw Vietnam fall into a hyperinflation spiral. The IMF calculated Vietnam's inflation in 1986 at 453%, while the World Bank gave 398%. Domestically, experts calculated inflation in 1986 at 774%.
This forced the Communist Party to reassess its policies.
After the death of General Secretary Le Duan, the Party introduced the Doi Moi policy. The market economy was mentioned, though still requiring a "socialist orientation"—a harmonious phrase to avoid offending conservatives.
The path to socialism seemed to face its greatest challenge: the collapse of the socialist system in Eastern Europe and the Soviet Union in the late 1980s and early 1990s. This event made Vietnamese leaders hesitate about the road ahead. But then, the wave of radical reform was quickly halted, and its proponents, like Politburo member Tran Xuan Bach, were purged.
Market Economy and the Fear of 'Deviation'
The Communist Party held its 7th Congress in June 1991 and adopted the Platform for National Construction in the Transition Period to Socialism, instead of "advance quickly, advance strongly." The platform outlined six characteristics of a socialist society: rule by the people; a highly developed economy; an advanced culture rich in national identity; no oppression or injustice; distribution according to ability and labor; and friendly international relations and cooperation.
At this time, Doi Moi policies were just beginning to be implemented, and the concept of a market economy was applied in practice while the US embargo remained in place. Although acknowledging the private economy, the Party still assigned the state sector a leading role.
From Doi Moi 1986 to the 1991 Platform, there was a period of "endless debate" among Vietnamese theorists between the market economy and the fear of deviating from socialism, according to Huy Duc, author of the book series "The Winning Side."
The 7th Congress also elected Do Muoi as General Secretary. Do Muoi, who as Chairman of the Council of Ministers had succeeded in curbing hyperinflation in the 1980s, was described as constantly worried about the risk of "deviation." The original document of the 7th Congress, "Socioeconomic Development Strategy to 2000," had a suffix added: "Building a synchronous market mechanism with state management under the socialist orientation."
Huy Duc quoted then-Minister of Trade Le Van Triet as saying that at some conferences, General Secretary Do Muoi warned: "Watch out for losing orientation, losing socialism."
But the public witnessed changes in their lives as the economy was unshackled and opened up to foreign trade, especially after the US normalized diplomatic relations with Vietnam in 1995. Foreign investment increased, and the number of private enterprises registered domestically also rose.
Capitalism was no longer shunned, and the Party's theorists debated "what to inherit and what to skip."
There were many changes in economic institutions, creating many social changes. By the 11th Congress, the Communist Party had supplemented the 1991 Platform with two more characteristics of a socialist society: "a prosperous people, a strong country, democracy, justice, civilization" and "a socialist rule-of-law state of the people, by the people, for the people, led by the Communist Party." The Party leader at that time was Nguyen Phu Trong, a political theorist, and the path to socialism continued to be affirmed as "consistent with the historical trend."
'There Is No Such Thing to Search For'
In 2013, Minister of Planning and Investment Bui Quang Vinh was invited to the Ho Chi Minh National Academy of Politics to speak before a large audience of local leaders. A question from the floor: What is a socialist-oriented market economy institution? Vinh replied: "We keep researching that model, but we never find it. There is no such thing to search for."
But Vinh's admission did not dampen the enthusiasm and aspiration of Vietnam's leaders to build socialism.
[Image: Portrait of Bui Quang Vinh and his statement] Credit: VGP/BBC
Theorist Nguyen Phu Trong expressed a desire to perfect Vietnam's own socialist model. The phrase "socialist-oriented market economy" was reiterated by Trong in 2021 as "a very fundamental and creative theoretical breakthrough of our Party." According to him, it is "a modern market economy, internationally integrated, operating fully and synchronously according to market economy laws, with management by a socialist rule-of-law state led by the Communist Party of Vietnam; ensuring the socialist orientation, aiming for a prosperous people, a strong country, a just, democratic, and civilized society."
This "creative breakthrough" seems to be the Party's way of differentiating itself from the Chinese model. China, since the end of the Mao Zedong era in the late 1970s and early 1980s, has shifted from a planned to a market economy—called socialism with Chinese characteristics. China has witnessed miraculous development and is emerging as a counterweight to the US. Among the remaining communist countries, Cuba faces difficulties from US pressure, North Korea resembles a feudal hereditary monarchy, and Laos is seen as heavily influenced by China and Vietnam.
Superior to Capitalism?
Vietnam is currently an upper-middle-income country and aspires to become a developed, high-income nation by 2045. That is the 100th anniversary of the founding of Vietnam under Communist Party leadership. It is also the year designated as "completing the socialist-oriented market economy institution" and ending the transition period.
Most of the aspirations to build a prosperous and strong Vietnam, or a rule-of-law state, are universal values that capitalist countries from Europe, the Americas to Asia have actually built and done better than Vietnam. So what makes the socialist model "superior" that the Communist Party of Vietnam continues to pursue?
The ideological conflict between capitalism and communism is not often mentioned, but Vietnamese theorists still point to "problems of modern capitalism": unsustainable development, "freedom, equality" that are not real, merely formal, and the deepening contradiction between labor and capital. In contrast, according to Party theorists, socialism has good values for people, sustainable development in economy, society, and environment, not only for the present but also for the future. In such a regime, society is compassionate, united, oriented toward progressive and humane values, and in politics, true power belongs to the people, according to Nguyen Phu Trong's article "Some Theoretical and Practical Issues on Socialism and the Path to Socialism in Vietnam" in May 2021.
"Could those beautiful aspirations be the true values of socialism and also the goal, the path that President Ho Chi Minh, our Party, and our people have chosen and are persistently pursuing?" Trong asked.
Communist Party theorists seem to want to resolve the contradictions between socialism and the market, on one hand emphasizing economic growth (prosperous people, strong country), on the other hand focusing on a "just, democratic, and civilized society."
[Image: Nguyen Phu Trong (left) and To Lam. Behind are portraits of Marx and Lenin, Vietnamese flag, and currency.] Caption: Nguyen Phu Trong was a theorist, while To Lam is more action-oriented.
But Trong only stopped at theory. No action plan or pilot model was introduced until his death in July 2024. Since To Lam became the Party's top leader in August 2024, the concept of the "era of rising up" has emerged and been frequently mentioned, becoming a theme at the 14th Congress. The goal of prosperity seems to have become a top priority on To Lam's agenda, as shown by his demand for annual economic growth of 10% or more. And, being assessed as an action-oriented person, he also suggested that Hanoi plan to pilot socialist communes and wards.
Vietnam's Invention
To Lam, in a talk on implementing the resolution on state economic development in February 2026, several times mentioned his previous debate with "professors at Harvard University" about "there is no free market" to emphasize the need for state intervention. He said he "told the professors" that the market economy model with state management is "Vietnam's invention." "But we are too busy with many tasks and practical matters, so we haven't studied it to become an economic theory for the world," To Lam said, adding that "the Harvard professors also agreed and are ready to discuss these issues."
State intervention in the market is a characteristic of the socialist-oriented market economy model. This means Vietnam abandons the classic model of centralized planning and subsidies but does not let the free market regulate entirely, emphasizing state intervention. The Vietnamese government has recently mentioned the concept of a developmental state, a model that has brought success to East Asian economies like South Korea, Singapore, and Taiwan. During his tenure as Prime Minister from 2016-2021, "developmental government" was a phrase favored by Nguyen Xuan Phuc, repeated many times. When Pham Minh Chinh became Prime Minister, this phrase was almost forgotten, replaced by rhythmic directives and orders from "overcome sunshine, defeat rain" to "three shifts, four teams"... But "developmental state" has reappeared, especially when To Lam introduced the quartet of resolutions on private economic development, international integration, innovation, and institutional reform.
In the 2026-2031 term, the Communist Party will review 40 years of Doi Moi and 40 years of implementing the 1991 Platform. "The era of rising up" of To Lam, with a series of reforms of the state apparatus and local government, is called Doi Moi 2.0 by international institutions like the World Bank.
Starting to build socialism from the ward and commune level seems to be the initial step so that by 2045—as To Lam declared—the transition period ends, advancing to socialism. According to Karl Marx's theory, socialism is only a lower stage and will progress to the higher stage of communism.
