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Explores, using face‐to‐face interviews, the perceptions of managers in state‐owned enterprises in Vietnam, as to their strategic plans. Given that many of these enterprises will have to be privatized, sometime in the future, it is surprising that little thought has been given to this eventuality. Suggests that the massive nature of the state sector (40‐50 per cent of the economy) will make it difficult for policy makers to enact change. Outlines a macro‐economic formula for planned, gradual conversion, keeping this reality in mind.

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