Neo-Liberalism’s Influence on National Governance and Public Function Privatization: Insights and Recommendations for Vietnam

Abstract

Over the past two decades, the privatization of public functions in Western countries has intensified, generating private capital profits within public sectors. However, this trend has also deepened financialization, where public management is increasingly influenced by financial capital interests, leading to cycles of public debt, privatization, and reductions in public services. The crisis of neo-liberal national management is evident in the trajectory from industrialization and financialization to stagnation—marked by political inertia, the inability to address rising poverty and inequality, and the deepening socio-political crisis across contemporary Western nations. By examining this crisis within the framework of neo-liberal reforms in Western countries, this article offers valuable lessons for Vietnam, particularly in the context of expanding public-private partnerships and enterprise equitization.