The fall of Saigon (now Ho Chi Minh City – HCM) on 30 April 1975 marked the end of Vietnam’s decades-long struggle for liberation—first against French colonialism, then U.S. imperialism. Ho Chi Minh’s Viet Minh, formed in 1941, fought Japanese occupiers and later defeated France at Dien Bien Phu (1954). The Geneva Accords temporarily split Vietnam, with U.S.-backed South Vietnam blocking reunification elections and reigniting conflict.

The National Liberation Front (NLF) led resistance in the South, using guerrilla tactics and civilian support to counter superior U.S. firepower. North Vietnam sustained the fight via the Ho Chi Minh Trail, despite heavy U.S. bombing. The costly 1968 Tet Offensive exposed U.S. vulnerabilities and shifted public opinion.

Of even more import, the Vietnam meat-grinder drained the U.S. military machine of weapons, ammunition and morale. By 1973, relentless resistance forced U.S. withdrawal. In March 1975, the Vietnamese People’s Army started operations in support of the NLF. The U.S.-backed forces collapsed, and by 30 April the Vietnamese forces forced their way into Saigon.

At 11 am, Soviet-made T-54 tank no. 843 of company commander Bui Quang Than rammed into a gatepost of the presidential palace (now Reunification Palace). The company political commissar, Vu Dang Toan, following close behind in his Chinese-made T-59 tank, no. 390, crashed through the gate and up to the palace. It seems fitting that the tanks which made this historic entry came from Vietnam’s principal backers.

Bui Quang Than bounded from his tank and raced onto the palace rooftop to hoist the NLF flag. Meanwhile, Vu Dang Toan escorted the last president of the U.S.-backed regime, Duong Van Minh, to a radio station to announce the surrender of his forces. This surrender meant the liberation not only of Saigon but also of the entire South, the reunification of the country, and a triumph of perseverance—a united, independent nation free from foreign domination after a 10,000-day war.

Celebrations

On 30 April 2025, Vietnam celebrated the 50th anniversary of the Liberation of the South and National Reunification. HCM sprouted hundreds of thousands of national flags and red hammer-and-sickle banners, complemented by hoardings embellished with reminders of the occasion – most of them featuring tank 590 crashing the gate.

Thousands of people camped on the streets from the morning of 29 April, hoping to secure good spots to watch the parade. Enthusiasm, especially of young people, expressed itself by the wide use of national flag t-shirts, ao dais (traditional long shirts over trousers), conical hats, and facial stickers. This passion may reflect increasing prosperity in this once impoverished land.

The end of the war found Vietnam one of the poorest countries in the world, with a low per capita income and widespread poverty. Its economy struggled due to a combination of factors, including wartime devastation, a lack of foreign investment and heavy reliance on subsistence agriculture, particularly rice farming, which limited its potential for growth. Western sanctions meant Vietnam relied heavily on the Soviet Union and its socialist allies for foreign trade and assistance.

The Vietnamese government launched Five-Year Plans in agriculture and industry to recover from the war and build a socialist nation. While encouraging family and collective economies, it restrained the capitalist economy. Despite these efforts, the economy remained underdeveloped, dominated by small-scale production, low labour productivity, and a lack of modern technology. Inflexible central planning, inept bureaucratic processes and corruption within the system led to inefficiencies, chronic shortages of goods, and limited economic growth. As a result, Vietnam’s economy faced stagnation and severe hyperinflation.

These mounting challenges prompted the Communist Party of Vietnam to introduce Đổi Mới (Renovation) reforms in 1986. These aimed to transition from a centrally planned economy to a “socialist-oriented market economy” to address inefficiencies and stimulate growth, encouraging private ownership, economic deregulation, and foreign investment.

Transformation

Đổi Mới marked a historic turning point, unleashing rapid growth in agricultural output, industrial expansion, and foreign direct investment. Early reforms shifted agriculture from collective to household-based production, encouraged private enterprise, and attracted foreign investment. In the 2000s, Vietnam became a top exporter of textiles, electronics, and rice, shifting towards high-tech manufacturing (inviting Samsung and Intel factories). By the 2020s, it emerged as a global manufacturing hub, the future focus including the digital economy, green energy, and artificial intelligence.

In less than four decades, Vietnam transformed from a poor, agrarian nation into one of Asia’s fastest-growing economies, though structural reforms are still needed for sustainable development. Growth has remained steady, at 5-8% per year.

Vietnam’s reforms lifted millions out of poverty, created a dynamic export-driven economy, and improved education, healthcare, and infrastructure. This has manifested itself in reducing extreme poverty from 70% to 1%, increasing literacy to 96%, life expectancy from 63 to 74 years, and rural electrification from less than 50% to 99.9%. Industrialisation drove urbanisation, which doubled from 20% in 1986 to 40% now.

This change displayed itself during the celebrations in HCM, amid skyscrapers, highways and the underground metro system. Everybody dressed well, and smartphones could be seen everywhere – penetration has reached three-fourths of the population. Thousands turned out on motorbikes and scooters (including indigenous electric scooters) – two-wheeler ownership is over 70%, the highest rate per capita in ASEAN. Traffic jams of mostly new cars emphasised the growth of the middle class.

At the same time, street food vendors and makeshift pavement bistro owners joined sellers of patriotic hats, flags and other paraphernalia to make a killing from the revellers. This reflects the continuance of the informal sector– currently representing 30% of the economy.

The Vietnamese government channelled tax income from booming sectors into underdeveloped regions, investing in rural infrastructure and social welfare to balance growth and mitigate urban-rural inequality during rapid economic expansion. Nevertheless, this economic transformation came with unequal benefits, exacerbating income inequality and persistent gender gaps in wages and opportunities. Sustaining growth requires tackling corruption, upgrading workforce skills, and balancing development with inequality.

NLF flag

Tank 390 courtesy Bao Hai Duong

The parade itself, meticulously carried out (having been rehearsed over three days), featured cultural pageants and military displays and drew admiration. Of special note, the inclusion of foreign military contingents from China, Laos, and Cambodia for the first time signalled greater regional solidarity, acknowledging their historical support while maintaining a balanced foreign policy approach.

Veteran, war-era foreign journalists noted another interesting fact: the re-emergence of the NLF flag. Comprising red and blue stripes with a central red star, this flag had never been prominent at the ten-year anniversary celebrations. The journalists questioned its sudden reappearance. It may be to give strength to the idea of the victory being one of the South itself, part of a drive to increase unity between North and South.

Before reunification in 1975, North and South Vietnam embodied starkly contrasting economic and social models. The North operated under a centrally planned socialist system, with collectivised farms and state-run industries. It emphasised egalitarianism, mass education, and universal healthcare while actively preserving traditional Vietnamese culture. The South, by contrast, maintained a market-oriented economy heavily reliant on agricultural exports (rice and rubber) and foreign aid. A wealthy elite dominated politics and commerce, while Western—particularly American—cultural influence grew pervasive during the war years.

Following reunification under the Socialist Republic of Vietnam (1976), the government moved swiftly to integrate the two regions. In 1978, it introduced a unified national currency (the đồng, VND), merging the North’s and South’s financial systems into a single, state-controlled framework. The unification of monetary policy symbolised the broader ideological project: to erase colonial and capitalist legacies.

Unity and solidarity

However, the economic disparities and cultural divides between regions persist, though less pronounced than before. The South, particularly HCM, remains Vietnam’s economic powerhouse, with a stronger private sector and international trade connections. The North, including Hanoi, has a more government-driven economy. Southerners tend to have a more entrepreneurial mindset, while Northerners are often seen as more traditional and rule-bound. Conversely, individuals from the North occupy more key government positions.

Studies suggest that people in the South exhibit lower trust in the government compared to those in the North. HCM tends to have stronger support for Western countries like the United States, while Hanoi has historically maintained closer ties with China. People in HCM tend to use the old “Saigon” city name.

Consequently, the 50th anniversary celebrations saw a focus on reconciliation and unity, reflecting a shift in perspective towards peace and friendship, as well as accompanying patriotism with international solidarity.

The exuberant crowds, modern infrastructure, and thriving consumer economy showcased the transformative impact of Đổi Mới—yet lingering regional disparities, informal labour challenges, and unequal gains remind the nation that sustained progress demands inclusive reforms. The symbolic return of the NLF flag and the emphasis on unity underscored a nuanced reconciliation between North and South, honouring shared struggle while navigating enduring differences.

As Vietnam strides forward as a rising Asian economy, it balances its socialist legacy with global ambition, forging a path where prosperity and patriotism converge. The anniversary was not just a celebration of the past but a reflection on the complexities of Vietnam’s ongoing evolution.

(Vinod Moonesinghe read mechanical engineering at the University of Westminster, and worked in Sri Lanka in the tea machinery and motor spares industries, as well as the railways. He later turned to journalism and writing history. He served as chair of the Board of Governors of the Ceylon German Technical Training Institute. He is a convenor of the Asia Progress Forum, which can be contacted at asiaprogressforum@gmail.com.)

By Vinod Moonesinghe