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Chapter 4 - Competition after the Economic Reforms of China and Vietnam

Published online by Cambridge University Press:  07 May 2025

Ahlam Lee
By
Ahlam Lee
Ahlam Lee
Affiliation:
Xavier University
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Summary

The economic reforms of China in 1978 and Vietnam in 1986 have spurred the emergence of privately owned enterprises, leading to increased competition across state-owned and privately owned enterprises under communist authoritarian regimes. Upon joining the World Trade Organization (WTO), both countries faced unavoidable international competition, particularly excelling in labor-intensive manufacturing industries due to low labor costs. China’s pragmatic approach to market-oriented forces has resulted in a growth gap favoring China over Vietnam. Despite this, both nations have made significant economic strides, transitioning to fast-growing middle-income countries and reducing global inequality. The onset of the US–China trade war in 2018 has seen Vietnam emerge as a major beneficiary, challenging China’s dominance in labor-intensive manufacturing industries. This shift highlights the potential for hegemonic transitions in competition dynamics. Additionally, this chapter illuminates pre-reform competition in both countries, where shortages of goods led to resource competition among citizens – an aspect often overlooked in existing literature focused on market competition post-reform.

Keywords

competitionChinaVietnameconomic reformWorld Trade Organization
Type
Chapter
Information
Questioning Conventional Assumptions of Competition Dynamics , pp. 98 - 120
Publisher: Cambridge University Press
Print publication year: 2025

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