declaration of Vietnamese independence after WW II sparked violent confrontations with the French, culminating in the French military defeat at Dien Bien Phu in 1954. The Geneva Accords of 1954 temporarily divided Vietnam into two zones (the Communist north and the anti-Communist, US-supported south). Political and ideological opposition quickly turned to armed struggle, prompting the USA and other countries to commit combat troops in 1965. The Paris Peace Agreements, signed in 1973, provided an immediate cease-fire and signaled the withdrawal of US troops. Saigon eventually capitulated to the Communist forces on 30 April 1975. The end of the Cold War and the collapse of the USSR in 1991 caused Vietnam and Western nations to seek rapprochement. In July 1995 even intransigent America re-established diplomatic relations with Hanoi (see Appendix B for a time line of historic events).ECONOMY 4The Socialist Republic of Vietnam has undergone several extreme changes since its reunification in 1976 following the withdrawal of U.S. troops. The face of the economic system was completely altered from a capitalist system in the South to the centrally controlled communist system in the North. In the years that followed, emphasis was placed on heavy industry at the expense of other economic sectors. Close central control and poor management of the economy led to a decline in industrial and agricultural production. Faced with stagnant growth, a severe shortage of food, deficit budgets, soaring inflation and chronic trade imbalances, the Sixth National Congress of Vietnams Communist Party, held in December 1986, initiated an overall economic renovation policy. Popularly known as Doi Moi, the policy aimed at making the country self-sufficient in food production and improving the standard of living of the people. The core of Doi Moi was to reduce the state intervention in business and to open the country to foreign in...
