Vietnam Before and After Doi Moi

Imagine, three decades ago, what was Vietnam – one of the most aggressive economy in the world nowadays – like? It might be the poorest and the most under-developed country. What kind of miracle happened to change the face of the country? In such a situation, the contemporary government did what needed to do : making a revolution. An innovation named Doi Moi was introduced in 1986. Since Doi Moi, we have witnessed a wide variety of variations in Vietnam. The most notable differences between two stages (before and after Moi Moi) lie in economic development polices, relations with other countries and national education system.

The difference between the two phases in economic development policies can be noticed quite easily. Before Doi Moi, just only state-owned enterprises are allowed. The government is responsible for all kinds of businesses. Citizens were not encouraged to do their own businesses. This limited greatly the development of national commodity production. However, Since Doi Moi, the State has permitted privately-owned enterprises and applied socialist-oriented market economy in which the state plays a decisive role in the economy, but privately-owned enterprises and cooperatives play a significant role in commodity production. This has led to liberation of the domestic market, encouragements of foreign direct investment (FDI) and also enhanced creativity and independability of labor force.

Another noticeable change between two stages is in foreign relation policy. Prior to Doi Moi, Vietnam was isolated from most other countries. It was just in cooperation with few socialist ones like the Soviet Union, Cuba and China. Therefore, it was mainly dependent on the Soviet Union for political supports, economic and military assistance. In contrast, since Doi Moi innovation, a marked improvement has produced in diplomatic relations of the country with some major powers. This opened up many opportunities for Vietnam to consolidate its position in...