Doi moi – social and economic changes in Vietnam: their sources, meaning and results

The article focuses on the modernization of the Vietnamese socio-economic system according to the reform program known as „doi moi” (renovation). After presentation of the economic systems of the South Vietnam and the Democratic Republic of Vietnam until 1976, the author describes the economic situation of the country after unifi cation. She points that efforts made to integrate two completely different systems were unsuccessful and caused the social and economic crisis, which reached its peak in the mid-1980’s. To overcome the crisis, Vietnam launched in 1986 the political and economic campaign of reforms to facilitate the transition from the centralized socialist economy to the socialist-oriented market economy. Doi Moi combined government planning with free-market incentives and encouraged the establishment of private businesses and foreign investment, including foreign-owned enterprises. The economic reforms that introduced market forces in Vietnam resembled those initiated earlier in China. As the result of the doi moi, the economic situation in Vietnam began changing gradually: 1. The period 1989–1992 was a turning point; gradual reforms staved off the total collapse while maintaining the support of society. 2. In 1993–1997 increase in export and foreign investments resulted in the rapid development of economy. 3. After 1997 East Asian Financial Crisis the government control of the economy and the nonconvertible currency has protected Vietnam from more serious consequences. 4. By the beginning of the 21st century the doi moi has managed to transform Vietnamese economy into the export-oriented one – the success of the reforms was evident. The socio-economic achievements of Vietnam consist of the following: 1. privatization, 2. openness in trade and investment as well as integration of the domestic economy with the regional and world economies; 3. macro-economic, social and political stabilization