An Honest Look at Vietnam’s Subsidy Period

This post may contain affiliate links. Please read our disclosure and privacy policy for more information.

Last Updated on November 21, 2017 by

Our visit to Hanoi's Vietnamese Museum of Ethnology included all the requisite colorfully embroidered and woven clothing, agriculture tools, religious artifacts and sample living quarters in an ample demonstration of Vietnam's surprisingly wide and diverse variety of ethnic minorities. The extraordinarily honest and introspective exhibition on the difficulties of life under Vietnam’s Subsidy Economy between 1975 and 1986 – now that was exceptional!

People on the Street - Hanoi, Vietnam
Street Scene in Hanoi, Vietnam

During this period, food, goods, and services were purchased with coupons or food stamps. Those with a position in government received more coupons and had access to special shops. For those without special status, they could expect to spend almost a day waiting in line to buy rice and other basic commodities. Everything was controlled by the government. Having a bicycle – even one that was ancient and on the verge of breakdown – was considered a luxury. If you were fortunate enough to own one, you'd be on a special list of bicycle owners allowed to buy parts (such as inner tubes, nuts, bolts, etc.).

The exhibition booklet explains this period best:

The period of the “Subsidy Economy” (Bao cap) (1975-1986) has been known as a time of hardships, when mechanism for socio-economic management was inappropriate, causing privations in people’s material and spiritual life. Material life was poor due to a sluggish and inefficient production system, but the constraints also applied to people’s creative and spiritual endeavors.

“Beo cap” was a period during which both the courage and intelligence of millions of people were suppressed and were anxious about liberation. It was a dramatic period, and a profound lesson about the law of social development.

What was most interesting was how openly this exhibition explained how government-controlled economies and societies do not work. This, in a museum run by a communist government. Mind boggling. We haven’t seen this much honesty and open kimono in exhibitions in “free and democratic” countries…

This extended moment of circumspection was unusually informative and educational, and worth checking out. Rumor has it that the exhibition will continue through June 2007, but Vietnam and Hanoi's tourists would be well-served if they continually extended the visit. It's not often that societies talk about their own systemic failures in such an open manner. Perhaps this exhibit could serve as an example to others.

Street Vendor Create their own Traffic Circle with Fruits
Fruit Vendors in Hanoi, Vietnam

We found ourselves repeatedly forgetting we were in a communist country while in Vietnam. Sure, communist propaganda and symbols are up on every street corner, but Hanoi’s streets are a bustle of capitalistic and entrepreneurial activity. People spoke openly to us about government bureaucracy and corruption.

As one Vietnamese tour guide put it, “What does communism really mean? We young Vietnamese don’t know.”

About Daniel Noll
Travel and life evangelist. Writer, speaker, storyteller and consultant. Connecting people to experiences that will change their lives. Originally from the U.S. Daniel has lived abroad since 2001 and most recently has been on the road since 2006. When he's not writing for the blog you can keep up with his adventures on Twitter, Facebook, and Instagram. And you can learn more about him on the About Page and on LinkedIn.

2 thoughts on “An Honest Look at Vietnam’s Subsidy Period”

  1. Thanks for the interesting information. However, there’re some points that i’d like to point out about your view toward what u called “honest” but i prefer that as sweet lies. It is true that the Vietnam communist government openly admitted that their subsidy system(subsidy? What exactly did they give to the people) was wrong and broken, but they didn’t openly put it into the text book and admitted that it was their fault. Also, even though they did open up the country afterward, but they still hold tight control over people life and their basic rights and freedom. It was a good article, but i do hope you will consider more about the other side of what they show you in countries like these.

  2. @Tuan Vu: We are really thankful for your comment. I’m glad that you took the time to share your experience, from the point of view of someone who has lived through this period in Vietnam and can compare it to circumstances today, as well as addressing how you believe the Vietnamese government has handled it.

    Thanks again for taking the time to share with us your perspective.


Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.