Đổi mới facts for kids

Đổi mới (pronounced "Doy Moy") is a special name for the way Vietnam runs its economy today. It means "Renovation" or "Innovation" in Vietnamese. It's like a mix-and-match economy where the government helps guide things, but businesses also have a lot of freedom. The main goal is to help Vietnam grow and become more modern.

Before Đổi mới, Vietnam had a "centrally planned economy." This meant the government decided almost everything about what was made, how much, and where it went. But in 1986, the Communist Party of Vietnam decided it was time for a big change. They wanted Vietnam to join the world's economy.

What is the Đổi mới Economy?

The Đổi mới reforms changed Vietnam's economy from being fully controlled by the government to a "market economy with a socialist orientation." This means:

• Businesses can make their own choices about what to produce.
• Prices are set more by what people want to buy and sell, not just by the government.
• The government still owns important industries, but private businesses are also allowed to grow.

Why Did Vietnam Change?

Vietnam made these changes to help its economy grow faster. The old system made it hard for businesses to be creative or efficient. By allowing more freedom, Vietnam hoped to:

• Produce more goods and services.
• Create more jobs for people.
• Attract money from other countries to invest in Vietnam.
• Help Vietnamese products be sold around the world.

How Did the Reforms Work?

The changes started in 1986. Here are some key parts of the Đổi mới reforms:

• Private Businesses: People were allowed to start their own small businesses. This was a big step away from the old system.
• State and Collective Companies: Large businesses often stayed owned by the government or by groups of people working together (collective). But even these companies started to have more freedom to make their own decisions.
• Market Forces: The idea of "market forces" became more important. This means that supply and demand (how much of something there is and how much people want it) started to play a bigger role in how the economy worked. It helped businesses decide what to make and how much to charge.

These changes helped Vietnam become a much more modern and connected country. Cities like Ho Chi Minh City have grown very quickly because of these economic reforms.

Images for kids

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  The rapid modernization of Ho Chi Minh City has been attributed to the success of Đổi Mới.

See also

In Spanish: Đổi mới para niños