Market economy

After the war ended in Vietnam the country remained communist meaning central control of the economy. They went through three 5 year plans the normal way that communist countries operate. The economy remained weak and little progress was made. Then in 1986 things changed as they moved away from the favored communist central government approach to a more free market economy. In 1986 Vietnam launched a political and economic innovation campaign (Doi Moi) that introduced reforms intended to facilitate the transition from a centralized economy to a "socialist-oriented market economy." Doi Moi combined government planning with free-market incentives During the years after the war ended in 1975 the GDP was about $1,000 per person and since 1986 it has risen to $15,000. This is the same thing that happened in China and is just one more example of how the free market works so much better than communism. The famous 5 year plans that communist countries try to use means that the central government has to sit down and project what items and in what amounts they will need over the next five years. In a free market system the market determines what is needed and produced.