Subsidy period

Thời bao cấp (lit. 'subsidy period') generally refers to the period between 1975 and 1986, when all of Vietnam operated under a command economy from the end of the Vietnam War until the onset of the Đổi Mới economic reforms. Although North Vietnam's economy had been under command economy since 1954, this period is generally not regarded as belonging to the bao cấp era, with South Vietnam have operated under a separate economic system. In this planned economy, most private merchants were eliminated, goods were distributed through a ration coupon system managed entirely by the state, and restrictions were placed on people buying and selling on the open market or transporting goods from one region to another. The state monopolized the distribution of most goods and restricted cash transactions. The family registration system was established during this period to distribute food and other commodities on a per capita basis, most notably through rice ration books that specified the quantity and types of goods that could be purchased.