The new class in Vietnam

Abstract

Vietnam has posted impressive gains in growth of output, exports and poverty reduction over the last twenty years. The standard explanation of this sustained success views Vietnam‟s transition from socialism to capitalism as an extension of markets and removal of obstacles to their efficient operation. This view of transition is based on a particular view of the origins of capitalism, in which capitalism emerges due to the expansion of trade, technology and the removal of obstacles to the natural tendencies of human interaction. However, this view of the origins of capitalism cannot explain the uniqueness of capitalism as a distinct historical social formation. A Marxist framework will be used, stressing the emergence of a new social division of labour based on the emerging class relation between capital and labour. This transformation forces a shift to accumulation through the market, requiring capitalists to operate under the market imperative in order to survive. This will be combined with Djilas (1957) and the concept of communist bureaucracies as a New Class in order to investigate the emergence of capitalism in Vietnam. The research question is how does the appearance and reproduction of the New Class provide insight into the development of a specifically Vietnamese capitalism? Data on Vietnam‟s largest 200 firms will be analyzed through the New Class lens to explore the transformation occurring in Vietnam.