US/Vietnam Relationship – The Wrongologist

Henry Kissinger’s Reputation

The Daily Escape:

Sunset, Flaming Gorge Reservoir Recreation Area, UT – August 2023 photo by Doreen Lawrence. The Gorge is the largest reservoir on the Green River.

Welcome to your Monday wakeup call! Wrongo has lived a long life, but he’s still 20 years younger than Henry Kissinger. Kissinger turned 100 in May. When Wrongo was in his late teens, he was protesting against the war in Vietnam. At that point, Kissinger was already a foreign policy advisor to the failed presidential campaigns of Nelson Rockefeller.

He would go on to become Nixon’s national security adviser and Secretary of State, a crucial figure overseeing the conflicts in Vietnam, Cambodia and Laos, that many say included war crimes. Kissinger was never indicted, but Anthony Bourdain wrote the following about Kissinger in his 2001 book “A Cook’s Tour”:

“Once you’ve been to Cambodia, you’ll never stop wanting to beat Henry Kissinger to death with your bare hands. You will never again be able to open a newspaper and read about that treacherous, prevaricating, murderous scumbag sitting down for a nice chat with Charlie Rose or attending some black-tie affair for a new glossy magazine without choking. Witness what Henry did in Cambodia—the fruits of his genius for statesmanship—and you will never understand why he’s not sitting in the dock at The Hague next to Milošević. While Henry continues to nibble nori rolls and remaki at A-list parties, Cambodia, the neutral nation he secretly and illegally bombed, invaded, undermined, and then threw to the dogs, is still trying to raise itself up on its one remaining leg.”

But unlike other possible US war criminals like Reagan and Nixon, Kissinger has never needed to rehabilitate his reputation. As Rebecca Gordon says:

“….despite his murderous rap sheet, the media and political establishment has always fawned over him.”

Kissinger is remembered for his initiative to open diplomatic relations between the US and China in 1972, though full normalization of relations with China would not occur until 1979.

Kissinger’s second innovation was inventing the for-profit third act of a public service career. Before him, former foreign policy principals usually wrote a memoir, gave the occasional foreign policy speech, and maybe became head of a nonprofit.

But Kissinger pioneered a for-profit third act in 1982 when he and Brent Scowcroft founded Kissinger Associates (with the help of a loan from the international banking firm of E.M. Warburg, Pincus) to offer advisory services to corporate clients. Kissinger’s prime selling point was that he had access to the corridors of power, not only in Washington, but in Beijing and Moscow.

Wrongo started out being a fanboy, having read Kissinger’s 1957 book “Nuclear Weapons and Foreign Policy” while in high school. It criticized the Eisenhower Administration’s “massive retaliation” nuclear doctrine. It also caused much controversy at the time by proposing the use of tactical nuclear weapons on a regular basis to win wars. Once Wrongo was running a tactical nuclear missile base in the mid-1960s, he was no longer a fan.

Wrongo met Kissinger in the mid-1980s at an event hosted by David Rockefeller at his Pocantico Hills estate. HK was walking his dog, a particularly obstreperous Golden Retriever. Wrongo asked “What’s the dog’s name?” Kissinger replied: “Madman”. Could there be a more perfect name for a Kissinger family pet?

Kissinger provided advice, both formal and informal, to every president from Eisenhower to Trump (though apparently, not yet to Biden). His fingers are all over the foreign policies of both major Parties. And in all those years, no “serious” American news outlet ever reminded the world of Kissinger’s long history of bloody intervention in other countries.

In fact, as his hundredth birthday approached, he was fawned over in an interview with PBS NewsHour anchor Judy Woodruff. From Rebecca Gordon:

“Fortunately, other institutions have not been so deferential. In preparation for Kissinger’s 100th, the National Security Archive, a center of investigative journalism, assembled a dossier of some of its most important holdings on his legacy.”

A third thing that Kissinger is associated with is the use of the concept of “Realpolitik” in foreign policy. It means conducting diplomatic policies based primarily on considerations of the reality on the ground, rather than strictly following ideology or moral and ethical premises.

Realpolitik has come to mean something quite different in the US: It is associated not with “what is” but with “what ought to be” on the ground. In Kissinger’s realpolitik, actions are good only when they sustain and advance American strategic power. Any concern for human beings that stand in the way, or for the law and the Constitution, are not legitimate.

Monday Wake Up Call – 2019 Memorial Day Edition

The Daily Escape:

Memorial Day, Arlington National Cemetery – 2013 photo by William Coyle

“Patriotism is supporting your country all the time, and your government when it deserves it.” – Mark Twain

Today we celebrate the sacrifice of those who died fighting in America’s wars. We mourn those we knew, and we remember those we never knew.

We can’t seem to get our fill of war. In fact, since 1943, the year of Wrongo’s birth, the US has been at peace for just five years: 1976, and 1977, 1978, 1997 and 2000 are America’s only years with no major war.

So today, we celebrate those who have died in service of our global ambitions. Maybe we watch a parade, shop at the mall, and attend the first cookout of the year. Perhaps we should be required to spend more time thinking about how America can increase the number of years when we are not at war.

But today also brings us something else to think about. The Yale School of Forestry published an article about the use of Agent Orange in Vietnam, “Fifty Years After, A Daunting Cleanup of Vietnam’s Toxic Legacy”. Here is a snippet:

“From 1962 to 1971, the American military sprayed vast areas of Vietnam with Agent Orange, leaving dioxin contamination that has severely affected the health of three generations of Vietnamese. Now, the US and Vietnamese governments have joined together in a massive cleanup project.”

During the US Air Force campaign known as Operation Ranch Hand, Agent Orange was used to strip bare the coastal mangroves of the Mekong Delta and the dense triple-canopy forests that concealed enemy fighters and supply lines. One-sixth of South Vietnam was blanketed with 20 million gallons of herbicides, and as many as 4.8 million Vietnamese civilians were exposed to the spraying.

The three remaining hot spots of dioxin contamination were the US airbases at Da Nang, Bien Hoa, and the smaller air base at Phu Cat. These were the sites from where the spraying was launched. The residual levels of dioxin on those sites posed a serious ongoing threat to public health. Of the three, Bien Hoa was by far the worst. During our war in Vietnam, it was said to be the busiest airport in the world.

Phu Cat was cleaned up by the Vietnamese without US assistance. Next came Da Nang, a six-year project that was completed last October. It cost $110 million, of which $100 million came from the US State Department, channeled through USAID.

The sheer volume of soils and sediments that must be remediated is staggering. In Da Nang, it was 90,000 cubic meters; in Bien Hoa it is 495,300. The US has agreed to commit $300 million to the Bien Hoa cleanup over 10 years, but USAID couldn’t bear the entire cost. So, after much debate, the Department of Defense agreed to contribute half of the total.

This has to be done, since dioxin is a deadly chemical. It is both hydrophobic and lipophilic: it hates water and loves fat. It sinks into the sediment at the bottom of bodies of water, it attaches to organic matter and moves up the food chain, from plankton to small aquatic animals and finally to fish. In soil, it ends up in free-range chickens and ducks and their eggs.

It becomes more concentrated at each stage, a process known as bioaccumulation. Eighty-seven percent of dioxin enters the body through ingestion, before migrating into fatty tissue, the liver, and breast milk. And fish and poultry are staples of the Vietnamese diet.

The WHO stipulates a tolerable maximum of 1 to 4 picograms (one trillionth of a gram) per kilogram of body weight per day. The mean amount they found in breastfed infants in the Bien Hoa area was 80 picograms.

And we shouldn’t forget how haphazardly the VA has dealt with the medical issues of Vietnam Vets who were exposed to Agent Orange. For many years veterans with Agent Orange-related diseases were denied disability compensation by the VA. This only changed with the passage of the Agent Orange Act of 1991. Now, the VA acknowledges certain cancers and other diseases are caused by Agent Orange.

The Vietnam War ended in 1975. The Vietnam vets that survived the war only to suffer from Agent Orange-related diseases had to wait at least 16 years before our government began helping the majority of them. Vietnam waited 50 years before our government acknowledged our culpability in destroying much of their environment.

This is a sad reminder about today’s Memorial Day, all of our past Memorial Days, and the ones to come.

It is good to be reminded again about our dead soldiers, and also to be reminded of what our government ordered them to do.

Monday Wake Up Call – April 23, 2018

The Daily Escape:

Red Winged Blackbird chasing Red Shouldered Hawk, FL – photo by Lana Duncan

Wrongo and Ms. Right attended a meeting with Lynn Novick, co-producer of The Vietnam War, a 10-part, 18-hour video history of the War that aired on PBS. The series was intended to be a shared public event that sparked a national discussion about the Vietnam War and the impact it had on America.

If you haven’t seen The Vietnam War, it is streaming here.

As someone who served in the military from 1966-1969, Wrongo was on orders for Vietnam twice. That he spent his time in Germany during the war was largely good luck. Many of his Officer’s Candidate School buddies died in Vietnam.

Novick showed a short video of the first episode in the series, followed by parts of episode six and seven. The series uses no historians or talking heads. There are no onscreen interviews with polarizing boldfaced names like John Kerry, John McCain, or Jane Fonda. Instead, there are 79 onscreen interviews with ordinary people who fought or lived through the war.

Two things stand out about the series: First, that it presents the perspective of South Vietnamese, Viet Cong, and North Vietnamese, along with that of the American soldiers, a significant advancement in perception for Wrongo. Second, how little that anyone on the US side, our government, our military or our soldiers, really understood about the Vietnamese. Novick told one story that was not included in the series, about how the North Vietnamese, traveling the Ho Chi Minh trail, would find an impassible rock formation, and without dynamite, they couldn’t work around it. The solution was to expose the area to US jets, who obligingly bombed the trail, making it passable for NVA trucks.

Lynn Novick said that you could divide the War into two phases: First, from the time of Truman through Kennedy, where honorable people were trying to do the right thing, and were simply getting it wrong. Then, phase two, when it became clear that our military thought that there was less than a 30% chance that we would be victorious. Novick said that recent scholarship dates that conclusion as being presented to the White House and the generals in 1965. Yet, the war went on for another 10 years. Clearly, in this phase, the decision-makers were no longer honorable people.

From that time forward, Presidents Johnson and Nixon knew that the war was unwinnable, but like their predecessors, they were unwilling to have the War lost on their watch. Their political calculations were largely responsible for 57,797 of the 58,220 deaths in the War.

And Vietnam remains the gift that keeps on giving. As of 2013, the US is paying Vietnam veterans and their families or survivors more than $22 billion a year in war-related claims.

The war at home pitted college students and clergy against politicians and the National Guard. There were huge demonstrations, and ultimately, the deaths of four Kent State college students at the hands of the Ohio Guard in 1970. That wasn’t all. Eleven people were bayoneted at the University of New Mexico by the New Mexico National Guard, and at Mississippi’s Jackson State University, police opened fire at demonstrators, killing two students and injuring 12.

These shootings of American kids by our own government led to the first nationwide student strike in US history. Over four million students participated.

The Vietnam War is a very complex and difficult topic. Our military’s plan was to win “hearts and minds” but they also bombed villages. We backed incompetent and corrupt in-country leadership. Our military falsified the metrics to show we were having “success” on the ground.

There was inconsistent, and eventually, dishonest direction from the White House.

Novick thinks that Vietnam was the most significant event for America from the Civil War to 9/11. It had a major impact, creating divisions that still persist today. In the Q&A, it was clear that the audience expressed many of the viewpoints that you might have heard 40 years ago. Ideas like the politicians prevented the military from winning, or that there were really no atrocities on the ground.

But, the afternoon’s discussion also opened people to being receptive to a different conversation, to be thoughtful about the meaning and mistakes of the War, and how we might use that experience to inform decisions our political class is making today.

So let’s wake up, America! Watch the series. Give some thought to the carnage that was wrought in our names, both in Vietnam and at home. Now, link all of that to our current endless fight against the Global War on Terror.

See any similarities?

To help you wake up, listen to Neil Young singing “Ohio”:

Those who read the Wrongologist in email can view the video here.

What the Tet Offensive Can Teach Us

The Daily Escape:

Wounded Marines carried on a tank during the fight to recapture Hue in the Tet Offensive in 1968 – photo by John Olson, The LIFE Images Collection. It is one of the most famous photographs from the Vietnam War. The pale figure is Alvin Bert Grantham from Mobile AL, who was shot through the chest. He survived.

Tuesday was the 50^th anniversary of the 1968 Tet Offensive. Tet is the Vietnamese holiday that celebrates the lunar New Year. On that day, the North Vietnamese (NVA) and the Vietcong launched a massive military offensive all across South Vietnam. It was largely a surprise attack. The NVA thought their attacks would trigger popular uprisings throughout the country, and that the US military and the South Vietnamese could be beaten in a quick, though bloody battle.

They miscalculated. Within a month, the Tet Offensive was over, and the war continued for another seven years.

In “Hue 1968”, a remarkable book by Mark Bowen, (who wrote “Black Hawk Down”), Bowen faults General William Westmoreland, who days after Tet started, said that the country-wide attacks were a diversion from Khe Sanh, so he initially held back troops from Hue, and other Vietnamese cities.

Khe Sanh was the seat of the district government. US Special Forces built an airstrip there in 1962, and ultimately a fortified base. Westmoreland believed it was a strategic location both for covering the Demilitarized Zone (DMZ), and to cut off NVA infiltration from Laos. Bowen writes:

Indeed the attack he expected there [Khe Sanh] loomed so large in his mind that he had entertained the use of chemical and even tactical nuclear weapon (p. 314).

A few days later, Westmoreland wrote:

The use of tactical weapons should not be required in the present situation…. [but] I can visualize that either tactical nuclear weapons or chemical agents would be active candidates for employment (p. 315).

Imagine. In 1968, field commanders were willing to recommend using tactical nuclear or chemical weapons in a war that was not an existential threat to the USA. This is the type of nuclear weapon that the Trump administration is currently thinking of adding to our to-be-built nuclear arsenal. Also remember that Trump has delegated tactics to field commanders in the Middle East and Africa, our current Vietnams.

There are a few lessons to be learned from the Tet Offensive. You can say that it was the beginning of the end for our Vietnamese adventure, but it took until 1975 for us to finally leave.

One thing that changed forever was the US public’s faith in what LBJ and the generals were saying about the war. Both had grossly oversold our progress to the American people, and Tet made that clear. More from Bowen:

For decades…the mainstream press and…the American public believed their leaders…Tet was the first of many blows to that faith in coming years. Americans would never again be so trusting (p. 505).

The publication of the Pentagon Papers in 1971 sealed the deal. They showed that American leaders had been systematically lying about the scope and progress of the Vietnam War for years.

After Tet, there was no more conjecture in the White House or Pentagon that the war could be won quickly or easily. The debate moved from how to win, to how to leave.

A month later, LBJ decided not to seek reelection. Westmoreland was soon removed as the field commander. And 1968 also brought the assassinations of Dr. King and Robert Kennedy, and then, the riots. Richard Nixon was elected eight months later, promising not victory, but that he had a “secret plan to bring the war to an honorable end”.

What have America’s presidents and generals learned from the Tet Offensive? We know that the military teaches future commanders about Vietnam to no apparent effect. It is still re-fought by our military. And almost half a century after Tet, they haven’t won it yet.

The Pentagon got the Trump administration to agree to a new “mini-surge” in Afghanistan intended, in disturbingly Vietnam-esque language, to “reverse the decline,” and “end the stalemate”. The Pentagon convinced Trump that more troops will do the trick.

This is tragedy bordering on farce. And sadly, there is no course in quagmire management for future presidents.

Vietnam was, in truth, a 21-year war, from our first advisors at Dien Bien Phu, where the French were defeated in 1954, to that last helicopter in Saigon in 1975.

Afghanistan is now a 17-year war, with about as realistic hope of ending successfully as Vietnam had at the 17-year mark. And much like in Vietnam, we have no real strategy, and no long-term realistic end state that we can see.

The only thing that keeps Afghanistan going is that very few Americans have a relative in the fight, because we ended universal conscription in 1973.

That was one lesson from Vietnam that our military accepted and put into practice.

The CIA Can’t Learn From Its Own History

The Daily Escape:

Fall in Chatham NH – photo by Robert F. Bukaty

From the NYT: (emphasis by the Wrongologist)

The CIA is expanding its covert operations in Afghanistan, sending small teams of highly experienced officers and contractors alongside Afghan forces to hunt and kill Taliban militants across the country, according to two senior American officials, the latest sign of the agency’s increasingly integral role in President Trump’s counterterrorism strategy.

This new effort will be led by small units known as counterterrorism pursuit teams. They are managed by CIA officers from the agency’s Special Activities Division and operatives from the National Directorate of Security, Afghanistan’s intelligence arm. It will include elite American troops from the Joint Special Operations Command (JSOC). But most of the troops will be current members of the Afghan militia.

The NYT quotes Ken Stiles, a former CIA counterterrorism officer:

The American people don’t mind if there are CIA teams waging a covert war there…They mind if there’s 50,000 U.S. troops there.

Well, Mr. Stiles, Wrongo minds quite a bit. And if Americans really don’t mind a covert war over there, then we shouldn’t wonder “why they hate us.”

But as with most Trump administration initiatives, it gets worse: The NYT article says that contractors will have a significant role. In August, the former head of Blackwater, Eric Prince, lobbied the Trump administration for a contractor-led effort to defeat the Taliban in Afghanistan. This might be his payday for that marketing effort. Let’s assume until we learn otherwise, that Prince and his contractors will be involved in the CIA’s new campaign.

It is possible that this campaign will be a boon for the Taliban. It will certainly kill a few of them, but it will also alienate quite a few Afghans. Think about it: Most Taliban fighters are locals. Killing them creates new local recruits for the insurgency.

The worst part of this is that we’ve been here before. During the Vietnam War, we stood up something called Operation Phoenix:

[Phoenix] was designed to identify and “neutralize” (via infiltration, capture, counter-terrorism, interrogation, and assassination) the infrastructure of the National Liberation Front of South Vietnam (NLF or Viet Cong). The CIA described it as “a set of programs that sought to attack and destroy the political infrastructure of the Viet Cong”.

There were two components of the program. Provincial Reconnaissance Units (PRUs) and regional interrogation centers. PRUs would kill or capture suspected NLF members, as well as civilians who were thought to have information on NLF activities. Many of those captured were then taken to interrogation centers where some were allegedly tortured in an attempt to gain intelligence on VC activities in the area.

Phoenix operated from 1965 to 1972. By 1972, Phoenix had neutralized 81,740 suspected NLF operatives, informants and supporters, of whom between 26,000 and 41,000 were killed. We had the body count, but the passive support for the Viet Cong in South Vietnam increased because of Phoenix.

And of course, we went on to win lose the war.

So, we are starting down a road that we shouldn’t, because we haven’t learned from our past experience. Perhaps CIA Director Mike Pompeo could open a book, and learn something about the CIA’s history before he jumps at the latest shiny idea.

For years, the primary job of the CIA in Afghanistan has been training the local Afghan militias. It also used members of the militias to develop informant networks and collect intelligence. This means the CIA has few independent sources of intelligence in the country. It will have to depend on the people it has trained in the militias, each of which are local, and have their own agendas. Success in this campaign depends on reliable intelligence. Who in this or that hamlet is a member of the Taliban? Without trusted local sources, the militia, whether under CIA or contractor command, will likely use torture to get answers they need.

It is predictable that this campaign will end up with big body counts just like Operation Phoenix, and without having made Afghanistan secure for its people.

Winter Reading List

The following are books that Wrongo hopes to finish by spring. They are all supposed to be good for you, like vitamins, or exercise. A few more may be added to the pile, but it is already an ambitious list to get through in the next quarter:

Sapiens: A Brief History of Humankind by Yuval Noah Harari. Harari asks how Homo sapiens evolved from an unexceptional savannah-dwelling primate to become the dominant force on the planet.

The Sympathizer by Viet Trang Nguyen won the 2016 Pulitzer Prize for fiction. It describes a Viet Cong agent undercover with the Republic of Vietnam forces and the US military. He is bi-racial, with a Vietnamese mother and a French GI father, making him a “man of two minds”. He escapes after the Fall of Saigon, and lives in the Vietnamese refugee community in LA, while secretly reporting back to his communist superiors in Vietnam.

The First Congress by Fergus M. Bordewitch. America’s beginnings have been enjoying new popularity. The play “Hamilton” shows that better than any book. This interest has been sparked by a recognition that the American Revolution was a beginning, not an ending, of the story of our nation. And today, we need big ideas and role models more than ever.

The Populist Explosion by John Judis. Did an unstoppable wave of Populism give us Donald Trump? This is a 184 page book that may tell us.

The Undoing Project by Michael Lewis. Israeli psychologists Daniel Kahneman and Amos Tversky changed our assumptions about decision-making. Their work created the field of behavioral economics, for which Kahneman was awarded the Nobel Prize (Tversky had already died). The book is about their work, their incredibly close relationship, and how it went sideways.

The General vs. The President by HW Brands.

Wrongo just finished this highly readable book. In 1950, South Korea was invaded by the North, and our troops were nearly forced to abandon the peninsula.

Harry Truman was president. After WWII, America was not interested, or able to fight another war. We had demobilized our troops, and had limited numbers of planes, ships and equipment that were combat ready, but the thinking was that holding Korea was necessary to protect Japan from invasion by the Soviets and the Chinese.

General MacArthur was the greatest military hero of his time, and was in charge of America’s interests in Asia. In the Korean conflict, he had an early brilliant success, launching a counter-attack against the North Koreans at Inchon that led to the North Koreans being completely routed. MacArthur pursued them into North Korea, all the way to the Chinese border. China saw MacArthur on their border as an existential threat, and joined the conflict in huge numbers, pushing the allied forces back again into the south.

MacArthur had constantly lobbied (and actually took steps) to extend the war into China. He based that on advising Truman that the Chinese would never enter the war. He further insisted that the battle against communism should be fought in Asia, while Truman and the administration felt certain that the real trouble spot was Europe. We had already engaged Russia in the Berlin airlift in 1948. In fact, the CIA had warned that:

The Soviet Union may seize upon the present crisis [Korea] to precipitate general war with the United States.

MacArthur offered an unauthorized ceasefire to the North Koreans while threatening the alternative of nuclear war with China. He wanted to use Taiwan’s military to help defeat China’s troops in Korea, which would have left Taiwan unprotected, and would have re-started the war between the mainland and Taiwan that had just ended in 1949. He also wrote an inflammatory letter to a Republican congressman, contradicting his Commander in Chief’s strategy for Korea.

His actions caused his firing in April, 1951. Afterward, Truman came under withering attack from Republicans. MacArthur was hailed as a hero. He addressed a joint session of Congress, and had ticker tape parades all across the US. But, at Congressional hearings called to justify Truman’s strategy, the tide gradually turned against MacArthur.

The author does a fantastic job sourcing now de-classified portions of the hearings to demonstrate the danger in MacArthur’s ideas. Because of the hearings, all in Congress finally understood what America was facing globally, how ill-prepared we were at the time, and the folly of MacArthur’s plans.

MacArthur flirted with running for president, and Truman was weakened after his 1948 election. So MacArthur moved to kill the king. He called Truman an appeaser, someone who did not understand the global threat of communism. Truman did not run for reelection.

Eisenhower became president in 1952, having pledged to bring peace on the Korean peninsula.

Today, Truman is vindicated, and is considered a near-great president, while MacArthur is viewed as a brilliant military man who let politics ruin him.

Read the book!

What Can Vietnam’s Success Teach Us?

Wrongo was against the Vietnam War. He was drafted right after college into the US Army while America was fighting the Viet Cong. Once in the military, he was twice on orders to go to Vietnam, but luckily, ended up serving his time in Germany, running a nuclear missile unit.

He has several army buddies whose names are inscribed on the Wall in Washington, but that was 50 years ago, and he holds no grudge against Vietnam, or its people. So, the remarkable recovery that Vietnam has made from the war, their now friendly ties with the US, and their success in becoming a middle income country ought to be instructive to our foreign policy establishment.

From the Economist:

Foreign direct investment in Vietnam hit a record in 2015 and has surged again this year. Deals reached $11.3 billion in the first half of 2016, up by 105% from the same period last year, despite a sluggish global economy. Big free-trade agreements explain some of the appeal. But something deeper is happening. Like South Korea, Taiwan and China before it, Vietnam is piecing together the right mix of ingredients for rapid, sustained growth.

Since 1990, Vietnam has averaged GDP growth of nearly 6% a year per person, lifting it from among the world’s poorest countries to middle-income status. This is similar to India’s or China’s growth, but China then went on to average double-digit growth for years. Check out this photo of today’s Ho Chi Minh City, what GI’s once called Saigon:

Stark Tower 2

The tall building is 68 floors high. It is the Bitexco Financial Tower, but locals call it “Stark Tower” because it looks like Tony Stark’s headquarters in the Iron Man films. While it is the city’s tallest building now, next year it’ll only be the fourth tallest.

So, how did this communist country do it? By moving from state ownership of the means of production to a mixed model. Vietnam’s Doi Moi policy opened up Vietnam to the rest of the world. They revamped much of the legal system to create a transparent and attractive place for foreign investment. This has given foreign companies the confidence to build factories. Foreign investors are now responsible for a quarter of annual capital spending. Trade accounts for about 150% of national output, more than any other country at its level of per-person GDP.

They established the Ho Chi Minh Stock Exchange in 2000, and de-nationalized many state-owned companies, opening doors for foreign investment. Equity was sold to both foreign and domestic investors, and in some cases, foreign ownership can now be 100%. In 2015, total Foreign Direct Investment (FDI) was $13 billion.

Vietnam shares a border with China. As Chinese wages rise, some firms can easily move to Vietnam for lower-cost production, while maintaining their links to China’s supply chain for parts.

Vietnam has a relatively young population. China’s median age is 36, while Vietnam’s is 30.7. Seven in ten Vietnamese still live in the countryside, about the same as in India, compared with only 44% in China. This reservoir of rural workers should help hold down wage pressure, allowing Vietnam to build up labor-intensive industries, a necessity for a nation of nearly 100 million people.

Public spending on education is about 6.3% of GDP, two percentage points more than the average for low- and middle-income countries. In global rankings, 15-year-olds in Vietnam beat those in America and Britain in math and science.

Although Vietnam has benefited from foreign investment, only 36% of its firms are integrated into its export industries, compared with nearly 60% in Malaysia and Thailand. While Samsung plans to invest $3 billion in consumer electronics production in Vietnam, there will be very little domestic content, except for packaging. More local value-added must be found to keep GDP growth high.

There are big problems: The fiscal deficit in 2016 will be more than 6% of GDP for the fifth straight year. As mentioned, domestic content in exports is low, and imports of consumer goods purchased by newly prosperous workers fuels a trade deficit.

Vietnam is now classified as a middle-income country; so it is about to lose access to preferential financing from the multilateral development banks. In 2017, the World Bank will start to phase out concessional lending.

Vietnam is successful, despite our dropping 3.5 times the number of bombs on it that we dropped in WWII, while killing more than a million Vietnamese.

For America, Vietnam’s success, despite our past efforts to devastate it, should cause us to reflect on how and why we are a guns-first country when we deal with the third world.

The Wrongologist

Geopolitics, Power and Political Economy

Category: US/Vietnam Relationship

Henry Kissinger’s Reputation

Monday Wake Up Call – 2019 Memorial Day Edition

Monday Wake Up Call – April 23, 2018

What the Tet Offensive Can Teach Us

The CIA Can’t Learn From Its Own History

Winter Reading List

What Can Vietnam’s Success Teach Us?