Before the 1980s, Vietnam was modelled as a centrally-planned economy (CPE) along the same lines as the Soviet economy. During the 1980-88 period a kind of'modified'planned economy (MPE) developed in which some partial reforms were effected within the CPE framework. These reforms and Vietnam's latest plans and reforms are surveyed. Economic reform measures in 1985 focused on the insignificant monetary overhang problem, which involved'forced'money holdings by households owing to shortages in consumer goods. At the same time, it failed to address the problem of'flow'of net domestic credit extended to the government and state-owned enterprises. Confiscatory monetary reform aggravated the situation as it reduced the demand for real balances. Budgetary and credit limits and shifts in asset portfolio choices by the Vietnamese, on the other hand, were responsible for the success of the 1989 reforms.