responsibility system was introduced in 1981-1982. The profit remittance system was replaced by an enterprise tax system with profit retention in 1983, which provided incentives to the SOEs. During the period of 1984-1988, the autonomy of SOEs gradually expanded. The main accomplishments of this period were the gradual introduction of the contract responsibility system and the approval of “bankruptcy law” and “enterprise law”. In 1988 the constitution was amended to permit private enterprises. In spite of the thriving “township and village enterprises”, the problems of loss-making SOEs and of soft budget constraints still remain.

## Laos

The Lao economic reform had their origin in the reform of public enterprises, because in the 1980s public enterprises generated most of the internal revenue of the government. The main focus here was to improve the efficiency of SOEs. The period from 1984 is characterized as one of increased autonomy for the SOEs. The most striking features were the allowance of the free circulation of goods across the whole country, and the assurance of full equality for both government and private economic entities with respect to trade and taxation.

Government ordinance No. 17 in 1990 promotes well-performing state and public enterprises, with the exception of the strategic sectors. By March 1994, more than 50 percent of the total public enterprises had been disposed of in various ways. Most of the small ones were sold and the most of big and medium ones were leased, partly soled or converted to joint ventures.

## Mongolia

A privatization law was passed in 1991. According to the government's plan, all small businesses, numbering about 3750; all livestock in state agricultural enterprises and cooperative farms; 100 percent of the assets of 340 large scale state-owned enterprises and part of the assets of another 354 large-scale enterprises were to be privatized. The privatization scheme was to issue vouchers worth 10,000 tuglig to every person in the country. The vouchers are of two types: pink voucher, worth 3,000 tuglig, is transferable and used for small enterprises, and blue voucher, worth 7,000 tuglig, is non-transferable and used for large enterprises. As of end of July 1993, more than 307 large-scale enterprises had been auctioned off. About three-quarters of blue vouchers held by the public had been redeemed, representing 60 percent of the total stock of such vouchers.

## V ietnam

Several reforms to improve the efficiency of state owned enterprises such as transfer of management to enterprises, introduction of self-supporting accounting system and so on were implemented. However, a monopolistic situation of state enterprises has been maintained, and there has been little competition among enterprises. Moreover, the autonomy of state enterprises has been spoiled by frequent ad hoc tax concession, and easy access to low interest preferential loans provided by state banks. Consequently, the efficiency of state enterprises showed little improvement.

Privatization in Vietnam is still in the experimental stage, with just a handful on the list. The basic stance of the government towards privatization is to keep the important sectors of the Vietnamese economy intact, while privatizing unimportant and unprofitable sectors. In 1992, the government announced an experimental plan of privatization. Seven enterprises