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Vietnam: Security Assistance

Other Releases

Bureau of Political-Military Affairs

Washington, DC

October 20, 2008

Background: The conquest of Vietnam by France began in 1858 and was completed by 1884. It became part of French Indochina in 1887. Vietnam declared independence after World War II, but France continued to rule until its 1954 defeat by Communist forces under Ho Chi MINH. Under the Geneva Accords of 1954, Vietnam was divided into the Communist North and anti-Communist South. US economic and military aid to South Vietnam grew through the 1960s in an attempt to bolster the government, but US armed forces were withdrawn following a cease-fire agreement in 1973. Two years later, North Vietnamese forces overran the South reuniting the country under Communist rule. Despite the return of peace, for over a decade the country experienced little economic growth because of conservative leadership policies. However, since the enactment of Vietnam's "doi moi" (renovation) policy in 1986, Vietnamese authorities have committed to increased economic liberalization and enacted structural reforms needed to modernize the economy and to produce more competitive, export-driven industries. The country continues to experience protests from various groups - such as the Protestant Montagnard ethnic minority population of the Central Highlands and the Hoa Hao Buddhists in southern Vietnam over religious persecution. Montagnard grievances also include the loss of land to Vietnamese settlers. (Source: CIA—The World Factbook)

Security Assistance Funding: (Source: 2009 Congressional Budget Justifications for Foreign Operations)

($ in thousands)

Account	FY 2007	FY2007	FY 2008	FY 2008	FY2009
	Actual	Supp	Estimate	Supp	Request
FMF	--	--	--	--	500
IMET	279	--	186	--	195
NADR	3,200	--	3,075	--	1,920

Direct Commercial Sales: (Source: 2007 Section 655 Report)

In FY 2007, the Department of State authorized the export of defense articles and services valued at $1,915,800.