Vietnam in the 1980s: price reforms and stabilisation


  • S. LEUNG
  • T.T. VO



Economic Programs, Administration of Economic Programs, Economic policy, Vietnam, Economic stabilisation


Before the 1980s, Vietnam was modelled as a centrally-planned economy (CPE) along the same lines as the Soviet economy. During the 1980-88 period a kind of 'modified' planned economy (MPE) developed in which some partial reforms were effected within the CPE framework. These reforms and Vietnam's latest plans and reforms are surveyed. Economic reform measures in 1985 focused on the insignificant monetary overhang problem, which involved 'forced' money holdings by households owing to shortages in consumer goods. At the same time, it failed to address the problem of 'flow' of net domestic credit extended to the government and state-owned enterprises. Confiscatory monetary reform aggravated the situation as it reduced the demand for real balances. Budgetary and credit limits and shifts in asset portfolio choices by the Vietnamese, on the other hand, were responsible for the success of the 1989 reforms.


JEL Codes: P26, E52


BERESFORD, M. (1989), National Unification and Economic Development in Vietnam, Macmillan.

DOLLAR, D. (1994), "Macroeconomic management and the transition to the market in Vietnam", Journal of Comparative Economics 18 (3), June.

FFORD, A. and VYLDER, S. (1988), Vietnam - An Economy in Transition, SIDA, June.

GSO (GENERAL STATISTICAL OFFICE) (1991), Economy and Finance of Vietnam 1986-1991, Statistical Publishing House, Hanoi.

GS0 (GENERAL STATISTICAL OFFICE) (1994), Economy and Finance of Vietnam 1986-1992, Statistical Publishing House, Hanoi.

IMF (1983), Vietnam - Recent Economic Development, SM/83/123, June.

IMF (1994), World Economic Outlook, October, Washington.

JEFFRIES, I. (1993), Socialist Economies and the Transition to the Market: A Guide, Routledge, London and New York.

KIMURA, T. (1989), The Vietnamese Economy 1975-86: Reform and International Relations, Institute of Developing Economies, Tokyo.

KOLODKO, G.W. et al. (1992), Hyperinflation and Stabilization in Postsocialist Economies, Kluwer Academic Publishers, Boston-Dordrecht-London.

KORNAI, J. (1980), The Economics of Shortage, North Holland, Amsterdam.

LE DANG DOANH (1994), "Economic reform in Vietnam: achievements and prospects", paper presented at the workshop on "Asian Transitional Economies" 10/4/94 in Jakarta, Indonesia.

LIPWORTH, G. and SPITALLER, E. (1993), "Vietnam - Reform and stabilization 1986-92", IMF Working Paper, WP/93/46, May.

TRAN TRONG KIM et al. (1991), Socio-Economic Forecast for Vietnam in 1990s, Hanoi.

VAN BRABANT, J.M. (1990), "Reforming a socialist developing country - The case of Vietnam", Economics of Planning, 23 (3), September.

WOOD, A. (1989), "Deceleration of inflation with acceleration of price reform: Vietnam's remarkable recent experience", Cambridge Journal of Economies, 13.

WORLD BANK (1992), Vietnam: Restructuring Public Finance and Public Enterprises, An Economic Report, Report no. 10134-VN, April.

WORLD BANK (1993), Vietnam: Transition to the Market, The World Bank, Country Department Division, Country Department I East Asia and Pacific Region, September.

WORLD BANK (1994), Vietnam: Financial Sector Review, An Agenda for Financial Sector Development, Report no. 13135-VN, July.

WORLD BANK (1994), Vietnam: Public Sector Management and Private Sector Incentives, An Economic Report, Report no. 13143-VN, June.




How to Cite

LEUNG, S., & VO, T. (2013). Vietnam in the 1980s: price reforms and stabilisation. PSL Quarterly Review, 49(197).