Recently, Nha Nam Culture and Media Joint Stock Company launched a full English translation of Adam Smith's prosperity of Nations, one of the most important works in the history of economic thought. This work is not only a study of economics but also an in-depth analysis of society, politics and history, an important component of the premise of the theory of the formation of Marxism. Although written and published nearly 250 years ago, many of Adam Smith's ideas are still timely, not outdated in the current socio-political situation of the world as well as Vietnam.
When Adam Smith wrote The Prosperity of Nations, Europe was going through a transition from a feudal economy to a market economy. The Industrial Revolution in England, with the development of the textile, coal mining, metal smelting and steam engine invention by James Watt... is gradually changing the face of production. This period also witnessed the dominance of bigalism, an economic system based on the principle that national strength depends on accumulating gold and silver and maintaining a positive trade balance. European countries are expanding their colonies, and international trade is growing, but is still limited by many barriers and monopoly. In that context, Smith has presented a new and revolutionary approach to the economy, challenging traditional viewpoints and proposing an economic system based on personal freedom, competition and a free market including debates on the role of the state in tariffs and protectionism that remains relevant in the 21st century of the United Statess global trade policies under President Donald Trump.
In theory, these principles can be applied to promote the private economic sector, which is currently considered the most important driving force in the national economic development strategy, just as Resolution 68-NQ/TW of the Politburo and General Secretary To Lam recently emphasized. Applying labor allocation, encouraging competition, and creating conditions for capital accumulation will help Vietnam increase productivity, improve the quality of goods and services, and integrate more deeply into the global economy.
The concept of invisible hand helps explain how private economic activities, when freely developed, can optimize resource allocation and promote economic growth. In the current context, Vietnam focuses on adjusting Smith's theory to suit the goal of social justice associated with promoting the leadership role of the Party and creating state management to build macroeconomic policies, ensuring a balance between market freedom and socialist orientation.
In practice, Smith's ideas have great significance for Vietnam in developing a socialist-oriented market economy. Firstly, promoting the private economy has always been identified as one of the most important driving forces of the Vietnamese economy. Smith's principles of freedom of business and competition are one of the reference for Vietnam to continue reforming the business environment, reducing administrative barriers, and creating conditions for private enterprises to develop. For example, simplifying business registration procedures, improving access to capital, and encouraging innovation in the private sector will help Vietnam make the most of the potential of this sector.
Second, enhancing international economic integration: Smith's ideology on the benefits of free trade can be applied for reference to allow Vietnam to expand its participation in free trade agreements (FTAs) such as CPTPP, EVFTA. This not only helps the private sector access international markets but also promotes competition and improves the quality of products and services.
Third, sustainable development and social justice: While supporting economic freedom, Smith also emphasized the role of the government in ensuring fairness, national protection and providing public services, general education, public works (infrastructure such as roads and bridges and culverts), enforcing legal rights (ownership rights and contracts) and punishing criminals. In the context of Vietnam, the state always focuses on investing in education, healthcare, and infrastructure to create a foundation for sustainable development, while adjusting policies to reduce economic inequality, ensuring socialist goals. The flexible application of Smith's ideas will help Vietnam achieve sustainable economic prosperity in the context of global integration. In the context of the modern world facing the increasing trend of popalism, protectionism, and trade conflicts - typically the Trump administration's policy of increasing taxes on imports - Adam Smith's idea has become more relevant and necessary than ever. Smith warned that tariff intervention not only distorts the market but also eliminates innovation momentum, increases consumer prices, and causes harm to workers in the long term a reality that many economists have pointed out in the consequences of recent US tariff policies.
Although some aspects of the work were challenged by economists later, Smith's overall approach centered on personal freedom, competition and free markets, while recognizing the necessary role of government − still had a profound influence on modern economic ideology. In an era of globalization, advanced technology and environmental challenges, Smith's ideas continue to provide a valuable framework for understanding and addressing economic issues.
