Some Aspects of Management in State-Owned Enterprises in the Republic of Vietnam:As a Case Study for Developing Countries

Abstract

The operation of industries by the State on a large scale is a recent development in the world. Although State intervention in economic life is no longer a subject of political controversy, the methods of organising a public enterprise, the nature of its institution, the scope of its activities, and the ways to supervise it are still a matter of ‘hot contention’. The reasons for State intervention are varied. In developing countries the most important one is perhaps the desire to accelerate the pace of development through economic planning. Given that public enterprises in these countries utilise a considerable proportion of national scarce resources, it is vital that they should be operated efficiently and contribute to the growth of the economy. Unfortunately, impeded by a host of inherent difficulties of pre-industrial societies, it is found that the working of State-owned enterprises in many developing countries is still not very satisfactory. The purpose of this essay is to study the management of public manufacturing industries in South Vietnam, as a case study for developing countries. It is not intended to discuss all aspects of the managerial problem, but only to look critically at some of them, viz., the creation, the control and the assessment of performance. It is believed that the understanding of their nature and interrelationship will be very helpful to the improvement of performance as well as the use of public enterprises as a crucial element in the planning process.