ABSTRACT
At the end of the American war Viet Nam was a country with a dilapidated infrastructure and two dysfunctional and disconnected economies. In the north, decades of central planning had led to very low productivity and generalized shortages. In the south, collectivization had brought to a standstill the once dynamic but chaotic market economy supported by the US war machinery. A decade later, at the beginning of the renovation process (Doi Moi), Viet Nam was one of the poorest countries in the world, often on the edge of famine. Four years after the transition to a market economy had started income per capita was below US$100 in current terms, and total exports of goods and services barely reached $1 billion in current terms. Precise estimates are not available, but close to 90% of the population might have lived on less than $1 a day in purchasing power parity (PPP) terms back then.
