Vietnam

In 1976 the South was reunited with the North in a new Socialist Republic of Vietnam, and Saigon was renamed Ho Chi Minh City. The conclusion of the war, however, did not end the country’s troubles. The exodus of refugees (especially ethnic Chinese), the so-called “boat people” who were willing to escape via hazardous sea crossings or less dangerous overland routes to other states, accelerated as socialization policies progressed in the south: almost 200,000 left in 1979. Border tension with the Communist government in Cambodia escalated rapidly after the fall of Saigon, and in early 1979 the Vietnamese invaded Cambodia in support of elements opposed to the Khmer Rouge, and installed a pro-Vietnamese government. The virtual occupation brought widespread international protests, and a few weeks later, Vietnam was itself attacked by its Communist neighbour and erstwhile benefactor, China, which had become jealous of Vietnamese encroachment on its regional interests. Chinese forces caused severe damage in the border region, but sustained heavy casualties. In the mid-1980s about 140,000 Vietnamese troops were stationed in Cambodia and another 50,000 troops in Laos. Vietnam substantially reduced its forces in Laos during 1988 and withdrew virtually all its troops from Cambodia by September 1989.

Within Vietnam, post-war economic and social problems were severe, and reconstruction proceeded slowly. Efforts to collectivize agriculture and nationalize business aroused hostility in the south. Disappointing harvests, the absorption of resources by the military, and US embargoes on global assistance and investment further retarded Vietnam’s recovery. By 1986 the annual rate of currency inflation was 700 per cent. Following the death of the veteran party chief Le Duan in 1986, economic reformists backed by a younger generation of Communist Party cadres took power, proclaiming a new policy of doi moi (renovation) modelled on Russian perestroika. The process accelerated in 1988, when poor harvests, famine, and bureaucratic mismanagement led to a mass dismissal of conservative party cadres under unprecedented reformist pressure. However, reaction to the events of 1989 in Europe and China led to the reinforcement of Communist primacy. The end of aid from the former Soviet Union in 1991 with the collapse of Soviet Communism further accelerated economic reform.

The new constitution of Vietnam adopted in 1992 reinforced the Communist Party’s central role, but sought to give legal guarantees to foreign investors (along with the introduction of bankruptcy legislation, to force moribund state enterprises to close). Vigorous restructuring policies had by the early 1990s reduced inflation and government debt to acceptable levels. European and Asian heads of state hastened to restore diplomatic ties with Vietnam, as companies hastened to invest. The United States finally ceased opposition to International Monetary Fund and International Bank for Reconstruction and Development (World Bank) reconstruction loans and aid for Vietnam in July 1993. Vietnam’s rush for growth was partly in response to the rapid growth of China, and the resultant threat to Vietnamese security. The United States lifted its embargo on trade with Vietnam in February 1994. In January 1995 a US diplomatic liaison office was opened in Hanoi and in July the US extended full diplomatic recognition to Vietnam.

In May 1997 the United States and Vietnam appointed ambassadors to each other for the first time since the fall of South Vietnam, and in June Madeleine Albright became the first US Secretary of State to visit Vietnam since the war. In the July 1997 National Assembly elections, some non-Communist candidates (albeit heavily vetted) were allowed to stand. Vietnam was forced by the Asian financial crisis to devalue its currency in October 1997. In December 1997 General Le Kha Phieu, a conservative figure, was elected as the new Communist Party Secretary-General. In February 1998 the government devalued Vietnam’s currency again, and announced economic reform plans, including the creation of a stock exchange, which was launched in July 2000. The United States opened a consulate on the site of its former embassy in Ho Chi Minh City in August 1999. On November 16, 2000 Bill Clinton became the first United States president to visit Vietnam since the conflict between the two countries ended over two decades earlier. It was hoped that the visit would further the process of reconciliation and lead to increased trade. Further efforts to strengthen relations with other nations were made by Vietnam during 2000 and 2001, with government representatives from Russia, India, China, Singapore, and the United Kingdom making official visits to the country. In December 2001 a trade agreement was signed between Vietnam and the United States.

In April 2001, the Communist Party chose Nong Duc Manh as its new leader, replacing Le Kha Phieu. Manh was replaced in his previous role of Chairman of the National Assembly by Nguyen van Huong. Manh, an engineer by training, is seen as a modernizer. Later in the year two former presidents—General Nguyen Van Thieu, the president of South Vietnam from 1967 to 1975, and General Duong Van Minh, the last president of South Vietnam—died.

At the May 2002 elections to the National Assembly, the Communist Party retained overall control in the legislature; however, independent candidates were also successful (2 out of 13 such candidates won seats). In July, Tran Duc Luong was re-appointed for a second term as president and the following month the National Assembly re-appointed Phan Van Khai as prime minister: both moves were regarded by observers as increasing political stability in Vietnam.

Internally, Vietnam strove to resolve economic and social difficulties caused by catastrophic flooding in the autumns of 2002 and 2003, which affected mostly the central and southern parts of the republic. The country was also struck by diseases that plagued South East Asia at the time; in April 2003 Vietnam became the first country to contain the disorder known as the Severe Acute Respiratory Syndrome (SARS), and in early 2004 the country confirmed the first human deaths resulting from bird (avian) flu.

In the battle against fraud and corruption a large-scale trial against mafia boss Truong Van Cam, known as Nam Cam, and 154 other individuals, including government officials, was held in June 2003. As a result, six people received death sentences (including Nam Cam, who was executed in June 2004) and many received long terms of imprisonment.

In June 2006 there was a major reshuffle of senior political leaders with Tran Duc Luong resigning as president, Phan Van Khai as prime minister, and Nguyen Van An as assembly speaker. They were replaced by Nguyen Minh Triet, Nguyen Tan Dung, and Nguyen Phu Trong respectively in a move to bring a new generation of leaders to the fore in Vietnamese politics.