The dramatic economic and social situation in Vietnam in the mid-1980s had forced the communist government of that country to launch in 1986 the program of economic reforms. The reforms under the name of Doi Moi aimed to transform a state-controlled planned economy into a “socialist-oriented market economy”. The success of economic reforms initiated under Doi Moi is evident. Over the last 25 years, Vietnam has become one of the fast-growing countries in the world. An outstanding progress in reducing poverty has been reported. However, Vietnamese economy still faces a series of problems. State-owned enterprises are poorly managed and the banking system is  underdeveloped. In the paper, the Authors present the process of economic transition in Vietnam and its effects.