The Vietnamese Economy: 1985-1991

What is doi moi?

Doi moi actually consists of a series of actions taken over the period from 1987-1998

It includes a series of economic, legal, political, and diplomatic policy reforms taken by the government, along with the actions and responses of average Vietnamese

These actions and results are incomplete and in some cases have produced significant resistance from some elements of the government

Decentralization of economic decision making for state owned enterprises (SOEs)

An end to controlled prices and state subsidies for production, resulting in the use of market forces (free prices and supply and demand) to govern economic decisions

Much greater openness and freedom for Vietnamese press and availability of foreign books, magazines, music, and videos - ballroom dancing

Creation of a legal code and a "rule of law" that would undermine the corruption and arbitraryness of official decisions; this included the establishment of an independent judiciary and release of political prisoners

Expansion of incentives to peasants and much wider scope of "property" rights for peasants - creation of small scale "capitalist: farmers

Substantial efforts to attract foreign capital: export processing zones; guarantees against nationalization of foreign assets; permission for wholly-owned subsidaries

Although Nguyen Van Linh was a most forceful advocate of doi moi, perhaps its real designer was Vo Van Kiet

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