The Centrally Planned Subsidized Economy Of Vietnam Before 1986 Nguyen Ky Vien – MA3N0214

VIETNAM SITUATION AFTER WAR THE CENTRALLY PLANNED SUBSIDIZED ECONOMY THE FINANCIAL MARKET OF VIETNAM BEFORE 1986 THE INNOVATION CAMPAIGN 1986 CONTENTS

April 30, 1975 marked the end of the war and the complete liberation of Vietnam Still a poor, backward agricultural country Low production target per capita VIETNAM SITUATION AFTER WAR

The mechanism of economic management: Based on the system of public ownership of means of production; The State, instead of the market, decides the whole production process (What to produce? How to produce? And who to produce for?); Distribution based on work. THE CENTRALLY PLANNED SUBSIDIZED ECONOMY

FIRSTLY, Major means of production were nationalized The revolution of production relationship (nationalize all private enterprises, bringing private economy into cooperatives ) two forms of ownership: State economy and collective economy. The mechanism based on public property dominated the whole production of society. THE CENTRALLY PLANNED SUBSIDIZED ECONOMY

SECONDLY, The management mechanism The State controlled the economy through legal norms and commands The State set production norms for production and business units The relationship between the State and economic units was of allocation-delivery THE CENTRALLY PLANNED SUBSIDIZED ECONOMY

THIRDLY, The distribution of income was based on the principle of egalitarianism The rate of pay was mainly defined on: Qualification; The difficulty of the work; Function; Service seniority The coupon-based system of distribution of basic necessities THE CENTRALLY PLANNED SUBSIDIZED ECONOMY

The coupon-based system of distribution THE CENTRALLY PLANNED SUBSIDIZED ECONOMY

The coupon-based system of distribution THE CENTRALLY PLANNED SUBSIDIZED ECONOMY

The coupon-based system of distribution THE CENTRALLY PLANNED SUBSIDIZED ECONOMY

The coupon-based system of distribution THE CENTRALLY PLANNED SUBSIDIZED ECONOMY

The coupon-based system of distribution THE CENTRALLY PLANNED SUBSIDIZED ECONOMY

The coupon-based system of distribution THE CENTRALLY PLANNED SUBSIDIZED ECONOMY

No financial markets had existed before the 1986 innovation campaign startup The only three financial organisations: National Bank of Vietnam (NBV), Bank for investment and development of Vietnam (BIDV), and Bank for foreign trade of Vietnam (VCB) There was no commercial banks THE FINANCIAL MARKET OF VIETNAM BEFORE 1986

facilitate the transition from a centralized economy to a "socialist-oriented market economy combined government planning with free-market incentives removed price controls enabled to sell the goods in the marketplace encouraged the establishment of private businesses and foreign investment THE INNOVATION CAMPAIGN 1986

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