What effects did the Vietnam War have on Vietnam's economy?

Answer 1

Large numbers of farmers abandoned their farms and fled to the cities for safety, and depended on providing services to US solders for their livelihood. The city economy collapsed when the US left. The use of agent orange and the destruction from the war caused further damage in the countryside. Since Vietnam economy was based on agriculture, like most poor countries, the war left the economy in ruins.

Answer 2

I'm the son of a Vietnam Veteran and have lots of family who are Vietnamese. Many escaped after the fall of Saigon, but many more had no opportunity for escape. There are two perspectives of Vietnam's economy before, during and after the war. The perspectives are from the South and North Vietnam.

South Vietnam's economy relating to the War is better known to Western societies. However, there are lots of details that most Westerners didn't realize. Compared to North Vietnam, South Vietnam's economy was advancing rapidly after the 1954 Geneva Accords. The brunt of their economy was supported by U.S. military efforts, but there were also industries independent of military support.

The Southern part of South Vietnam is Vietnam's rice basket, which produces so much rice that Vietnam is now the second largest exporter of rice in the world. There were also thousands of acres of rubber tree plantations, which produced rubber for Goodyear. Artwork, clothing and some light manufacturing were also viable industries in South Vietnam.

Before and during the Vietnam War, South Vietnam realized tremendous prosperity compared to North Vietnam. Even after the U.S. pulled out in 1973, South Vietnam was better economically than North Vietnam ever was. All that changed right after the fall of Saigon in 1975.

North Vietnam’s society was much different from South Vietnam, because it was communist controlled. There was no productive industry in North Vietnam other than substance farming. Communism fits well in such a society but does nothing to advance it. North Vietnam relied heavily on China and the Soviet Union for both military and economic needs.

What many don’t know is the difference in the advancement between North and South Vietnam was a strong reason why South Vietnam and the U.S. neglected to abide to the 1954 Geneva Accords. All of the progress would have been destroyed had South Vietnam ceded to communism at that time, which was proven after the fall of Saigon.

North and South Vietnam’s economy were affected differently after the fall of Saigon. The North Vietnamese had always been basically poor, and had not realized anything significantly different after the war was over. Plundering by Communist officials destroyed what was left of South Vietnam’s economy. Businesses and homes were taken away. Factories were closed. They destroyed anything that could have revived Vietnam’s economy as a whole. This became worse when Vietnam entered into another war.

Vietnam’s military invaded and began controlling Cambodia in late 1978 while already having control over Laos. This aggressor diplomacy was very costly to Vietnam’s already weak economy. Bare essentials became scarce and hundreds of thousands of Vietnamese died of starvation and malnutrition. A new generation of Vietnamese was being born while this was happening, and this generation would cause change in Vietnam that is reflected today.

The post-war generation is the largest generation ever in Vietnam. They would eventually need jobs and housing, but the communist controlled economy was shrinking. Complete economic failure came when the Soviet Union collapsed and further economic assistance from them would cease. This forced a dramatic change in how Vietnam’s economy would be managed. Doi Moi (Reform) was enacted in 1986 as a progressive effort to change Vietnam’s economy from central controlled to a market controlled economy.

Twenty years later, Vietnam is now the second fastest growing economy in the world with no sign of slowing down in the near future. Jobs are plentiful and their society is advancing very rapidly. However, there are still remnants of effects from the Vietnam War. North Vietnam is advancing slower than South Vietnam. This is because the South had experience with a market economy, while the North had known nothing but communism. This has caused today’s Saigon to appear very modern while Hanoi seems to be ten years behind. This will eventually balance as Vietnam’s economy continues to grow.

In a way, the United States finally won the Vietnam War because communism destroyed itself. Had we knew then what we know now, we should have shot dollar bills instead of shooting bullets. That would have saved a lot of lives.