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Private sector growth will be key to maintaining the dynamism of the Vietnamese economy and allowing the country to achieve its development objectives, the study finds. The authors point out that, above all, private enterprises need space to grow. Regulations that run counter to the logic of normal market practices, that give entrepreneurs few opportunities to enter into contractual relationships, or that penalize them for market success are bound to be circumvented, at significant social cost. By contrast, laws and regulations that are in harmony with market forces will be easier to implement, and their implementation will be supported by the same market forces they are designed to protect. Adapting laws and regulations to the needs of the marketplace will not be enough, however. According to the authors, incentives inside the bureaucracy need to be aligned with development. A government committed to development will find it beneficial to support the growth of the private sector.
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