Vietnam Economy

11 Pages 2798 Words

nd the government took a reactive attitude to ease the pressures of the shortage economy with the objective to achieve socialist transformation. The second period known as soft reform is began from the economic “renovation” (otherwise known as “doi moi”) in December 1986 till 1990s. The ideology behind the soft reform is the recognition of the fundamental flaw of Vietnam’s socio-economic system under the neo-Stalin model. The government initiated a stronger form of reform to move towards a market economy especially by opening up to foreign direct investments (FDI). Figure 1: Vietnam’s reform process Vietnam’s overall reform process Hard Reform Socialism: 1976-1986 Soft Reform Socialism: 1986 onwards Pre-Stage (up to 1979) Fence-breaking (up to 1981) Formal Transition (up 1989) Post-Stage (1990 onwards) Second Five-Year Plan (1976-1980) Third Five-Year Plan (1981-1985) Economic ‘Renovation’ (1986-1990) Subsequent Five-Year Plans In addition, Vietnam’s gradualist approach to transition can be further broken into a four-stage p...