the centrally planned subsidized economy of vietnam before 1986 nguyen ky vien – ma3n0214
TRANSCRIPT
The Centrally Planned Subsidized EconomyOf 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
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
THANK YOU FOR YOUR ATTENTION!