The theory of socio-economic formations is one of the most important components of the materialist conception of history. In this theory, the founders of Marxism not only identified the most general laws governing the development of human society, but also presented essential viewpoints and ideas concerning the economy—its role and position in the existence and development of social life, as well as the macrostructure of the economy itself. Consequently, many countries have chosen this theory as a theoretical foundation for building socialism.
The theory of socio-economic formations consists of three key elements: productive forces, relations of production, and the superstructure. These elements interact with one another, forming the dynamic movement of two fundamental and universal laws governing the existence and development of society. Each element plays a distinct role within the socio-economic formation.
By thoroughly grasping this theoretical framework and based on both the characteristics of the era and the specific conditions of Vietnam, the Communist Party of Vietnam has adopted the policy of advancing toward socialism by bypassing the capitalist stage.
Today, all countries must build and develop a market economy. However, under different social systems, the market economy serves different purposes. In capitalist countries, it takes the form of a capitalist market economy; whereas in Vietnam, it is a socialist-oriented market economy.