after the country's reunification i

after the country's reunification in 1975, Vietnam's economy was centrally run and guided by five-years plans. Heavy industry was given priority at the expense of other economic sectors. Close central control and poor management of the economy led to a decline in industrial and agricultural production.
faced with stagnant growth, a severe shortage of food, deficit budgets, soaring inflation and chronic trade imbalances, the Sixth National Congress of Vietnam's Communist Party, held in December 1986, initiated an overall economic renovation policy. Popularly known as "Doi Moi", the policy initially aimed at making the country self-sufficient in food production and improving the standard of living of the people.
The core of "Doi Moi" was to liberalize production forces, reduce the state intervention in business ad encourage foreign and domestic private investment. The Seventh and Eighth national Congresses of the Party in 1991 and 1996 respectively reaffirmed its commitment to a multi-sector, market-oriented economy and called for the introduction of more structural reforms.
Price and domestic trade have been liberalized and most subsidies have been removed. Multiple exchange rates have been gradually abolished and replaced with a single rate reflecting market forces. External trade restrictions have been gradually reduced, allowing more companies, including production enterprises and private firms, to participate in export and import business. Most commodities are now freely imported and exported. The Government has also adopted a number of policies in an effort to promote exports. Foreign exchange controls have been relaxed, although the Dong is still not fully convertible.