a) The socialist market economy is the economic model employed by the People’s Republic of China. It is based on stated-owned enterprises and an open-market economy, and has its origins in platform of socialism with Chinese characteristics and Reform and Opening. It is the economic system in the People’s Republic of China since the Chinese economic reform started in 1978 (see Economy of the People ‘s Republic of China). Despite its formal title, this system has been widely undertaken in Vietnam. Where the economic system is called the Đổi Mới or socialist-oriented market economy.
On the other hand, Capitalism there were variously defined by sources. There is no consensus on the definition nor on how the term should be used as a historical category. There is general agreement that is based on private ownership of the means of production and the production of goods or services for profit or income, capital accumulation, competitive markets, voluntary exchange and wage labor. The designation of capitalism have been applied in a variety of historical cases, varying in time, geography, politics and culture. There is general agreement that capitalism became dominant in the Western world following the demise of feudalism.
Economists, political economists and historians have taken different perspectives on the analysis of capitalism. Economists usually emphasize the degree that government does not have power control over markets (laissez faire), and on property right. Most political economists emphasize private property, power relations, wage labor, class and emphasize capitalism as a unique historical formation. Capitalism is generally viewed as encouraging economic growth.