Revolution, Reform and Regionalism in Southeast Asia : Cambodia, Laos and Vietnam

Revolution, Reform and

Regionalism in Southeast Asia

Geographically, Cambodia, Laos and Vietnam are situated in the fastest

growing region in the world, positioned alongside the dynamic economies

of neighboring China and Thailand. Revolution, Reform and Regionalism

in Southeast Asia compares the postwar political economies of these three

countries in the context of their individual and collective impact on recent

efforts at regional integration. Based on research carried out over three

decades, Ronald Bruce St John highlights the different paths to reform

taken by these countries and the effect this has had on regional plans for

economic development.

Through its comparative analysis of the reforms implemented by Cam￾bodia, Laos and Vietnam over the last 30 years, the book draws attention

to parallel themes of continuity and change. St John discusses how these

countries have demonstrated related characteristics whilst at the same

time making different modifications in order to exploit the strengths of

their individual cultures. The book contributes to the contemporary

debate over the role of democratic reform in promoting economic devel￾opment and provides academics with a unique insight into the political

economies of three countries at the heart of Southeast Asia.

Ronald Bruce St John earned a Ph.D. in International Relations at the

University of Denver before serving as a military intelligence officer in

Vietnam. He is now an independent scholar and has published more than

300 books, articles and reviews with a focus on Southeast Asia, North

Africa and the Middle East and Andean America.

Routledge contemporary Southeast Asia series

1 Land Tenure, Conservation and Development in Southeast Asia

Peter Eaton

2 The Politics of Indonesia-Malaysia Relations

One kin, two nations

Joseph Chinyong Liow

3 Governance and Civil Society in Myanmar

Education, health and environment

Helen James

4 Regionalism in Post-Suharto Indonesia

Edited by Maribeth Erb, Priyambudi Sulistiyanto and Carole Faucher

5 Living with Transition in Laos

Market integration in Southeast Asia

Jonathan Rigg

6 Christianity, Islam and Nationalism in Indonesia

Charles E. Farhadian

7 Violent Conflicts in Indonesia

Analysis, representation, resolution

Edited by Charles A. Coppel

8 Revolution, Reform and Regionalism in Southeast Asia

Cambodia, Laos and Vietnam

Ronald Bruce St John

Revolution, Reform and

Regionalism in Southeast Asia

Cambodia, Laos and Vietnam

Ronald Bruce St John

First published 2006

by Routledge

Typeset in Times by Wearset Ltd, Boldon, Tyne and Wear

British Library Cataloguing in Publication Data

A catalogue record for this book is available from the British Library

Library of Congress Cataloging in Publication Data

A catalog record for this book has been requested

Copyright © 2006 Ronald Bruce St John

Routledge is an imprint of the Taylor & Francis Group, an informa business

2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN

Published 2017 by Routledge

711 Third Avenue, New York, NY 10017, USA

The Open Access version of this book, available at www.tandfebooks.com,

has been made available under a Creative Commons Attribution-Non

Commercial-No Derivatives 4.0 license.

ISBN 978-0-415-70184-6 (hbk)

To Carol, Alexander and Nathan

who shared the journey

Contents

Preface viii

Acronyms xiii

1 Same space, different dreams 1

2 Rush to socialism 20

3 Tentative reforms 44

4 Reform accelerates 70

5 End of the beginning 102

6 Challenges and prospects 143

7 Continuity and change 189

Notes 204

Select bibliography 247

Author’s note 276

Index 277

Preface

My study of the political economies of Cambodia, Laos and Vietnam

began in 1970 as a freshly minted captain in the U.S. Army. I served as an

intelligence officer in the Strategic Research and Analysis Section of

Headquarters, Military Advisory Command, Vietnam. Working under

cover as a “topographical engineer,” my duties included the supervision of

a small, dedicated group of highly educated analysts, detailed to brief the

commander-in-chief daily on the impact of political events on the military

conduct of the war. In attempting to understand and explain the organi￾zation and operation of the so-called Viet Cong Infrastructure, I earned

the equivalent of an M.A. in Southeast Asian Studies to accompany

advanced degrees in international relations earned earlier at the Graduate

School of International Studies, University of Denver. At the same time, I

grew increasingly disenchanted with the American role in Southeast Asia.

Out of that disillusionment grew a lifelong fascination with the often trou￾bled, ever-changing political economies of Cambodia, Laos and Vietnam.

Following my tour in Vietnam, I resigned my commission and pursued

a dual career in academia and international commerce, living much of the

next two decades in Europe, Africa and the Middle East. I returned to

Southeast Asia in 1987, living first in Hong Kong and later in Bangkok.

Employed as a regional manager for Caterpillar Inc., I traveled widely

throughout the region, most especially in Cambodia, Laos and Vietnam.

My duties varied widely from mine clearing operations on the Poipet￾Battambang road to drafting reports on the political economies of Cambo￾dia and Laos to testifying before the Senate Foreign Relations Committee

in 1991 in support of lifting the multinational embargo and resuming mul￾tilateral aid to Vietnam. Eventually, I returned to the United States and

took early retirement to work full time as an author and independent

scholar. In recent years, I have continued to travel frequently to Cam￾bodia, Laos and Vietnam.

Based on research begun in the 1970s, this book explores the economic

and political reforms implemented by the governments of Cambodia, Laos

and Vietnam over the last three decades. A focal point is the different

paths to reform taken by three neighbors long considered to be intimately

related, if not a single entity. The impact of their divergent reforms on

regional plans for economic development through the Association of

Southeast Asian Nations in general and the Greater Mekong Subregion in

particular is a secondary focus. Grandiose schemes abound and publicists

tout success; however, as is often the case, the devil is in the detail.

In writing about a diverse geographical area, I have followed a simple

rule regarding the spelling of place names discussed. I have tried to use the

most common contemporary spelling even when this means that current

usage is at variance with earlier decades. Fortunately, the difference in

most cases between present and past usage is not great. The official title of

the state and government of Cambodia is an exception as it has varied

considerably over the last four decades. Unless reference to a specific

regime adds clarity or emphasis, I have generally referred throughout the

book to the country and government simply as Cambodia. Widely known

Vietnamese toponyms like Hanoi or Danang are recorded as a single word

while less well known place names like Ben Tre or My Tho are cited in

their common Vietnamese form. The terms “Laos” and the “Lao People’s

Democratic Republic” or “Lao PDR” are used interchangeably as they

are in English-language publications by the Vientiane government. The

term “Lao” is used to denote citizens of the Lao PDR as well as ethnic

Lao. The different usages should be apparent in their context. The full

complement of diacritical marks is not used as a matter of printing conve￾nience. Where references to place names are contained within quotations

from earlier periods, I have retained the contemporary usage.

In the course of completing this book, which has been in progress for

almost two decades, I have received assistance from a variety of sources

which have facilitated access to materials and information in many differ￾ent ways. The library staffs at Carnegie Mellon University, Knox College

and Bradley University have been especially gracious of their time and

talent over a prolonged period. I would also like to thank the staff at the

Orientalia Section in the Library of Congress and at the U.S. National

Archives in College Park, Maryland for their research support. I am grate￾ful for the assistance I received at the Bibliothèque Nationale and the

Archives Nationales in Paris and the Centre des Archives, Section Outre￾Mer, in Aix-en-Provence. The library staffs at Georgetown University,

Northern Illinois University and Yale University also facilitated selected

aspects of my research endeavors.

Over time, I have become indebted to a large number of teachers and

scholars whose research and writing, often accompanied by counsel and

guidance, have shaped my own thinking. While a mere listing of names

cannot do justice to their manifold contributions, I would like to take this

opportunity to recognize some of them. The late Mikiso (Miki) Hane,

Szold Distinguished Professor Emeritus of History and a gifted scholar

and talented teacher, first sparked my interest in Asian studies when I was

an undergraduate student at Knox College. Peter Van Ness later helped

Preface ix

grow my understanding of Asia when I was a graduate student in inter￾national relations at the University of Denver. My Vietnamese language

training commenced at the Defense Language Institute at Ft. Bliss, Texas

under the strict tutelage of some wonderfully warm and caring Vietnamese

teachers who succeeded in inculcating in me a love of the culture as well as

the language of Vietnam. Major Arnold Catarina, a foreign area officer

specialist on Southeast Asia and officer commanding during my Vietnam

tour, was an informed teacher and a sensitive individual, highly knowl￾edgeable about the region but serving in an impossible situation.

Among those active in Vietnamese studies, I would like to thank espe￾cially Douglas Allen, Melanie Beresford, Mark Philip Bradley, Pierre

Brocheux, Nayan Chanda, Patrice Cosaert, Henrich Dahm, Dang T. Tran,

William J. Duiker, Adam Fforde, Frances Fitzgerald, Frédéric Fortunel,

Nick J. Freeman, Bernard Gay, Ellen J. Hammer, Daniel Hémery, Hue￾Tam Ho Tai, Huynh Kim Khanh, Neil L. Jamieson, John Kleinen, Gabriel

Kolko, Börje Ljunggren, David G. Marr, Albin Michel, Patrice Morlat,

Martin J. Murray, Ngo Van, Ngo Vinh Long, Nguyen Van Canh, Milton E.

Osborne, Eero Palmujoki, Douglas Pike, Doug J. Porter, Gareth Porter,

Lewis M. Stern, Philip Taylor, Carlyle A. Thayer, Tran Thi Que, Andrew

Vickerman, Vo Nhan Tri, Vu Tuan Anh and Alexander Barton Woodside.

In Lao studies, I would like to acknowledge Yves Bourdet, Kennon

Breazeale, MacAlister Brown, Jean Deuve, Arthur J. Dommen, Grant

Evans, Geoffrey C. Gunn, Mayoury Ngaosrivathana, Pheuiphanh Ngaosri￾vathana, Jonathan Rigg, Martin Stuart-Fox, Christian Taillard, Joseph L.

H. Tan, Mya Than, Leonard Unger, William E. Worner and Joseph J.

Zasloff.

I am grateful for inspiration and assistance in Cambodian studies from

Elizabeth Becker, Jacques Bekaert, David P. Chandler, Chang Pao-Min,

Ros Chantrabot, Justin Cornfield, Jean Delvert, Thomas Engelbert, Craig

Etcheson, Alain Forest, Christopher E. Goscha, Evan Gottesman, Caro￾line Hughes, Karl D. Jackson, Raoul M. Jennar, Ben Kiernan, Judy

Ledgerwood, Michael Leifer, Marie Alexandrine Martin, Stephen J.

Morris, Sorpong Peou, François Ponchaud, David W. Roberts, William

Shawcross, Serge Thion, Thu-huong Nguyen-vo, John Tully and Michael

Vickery.

In Laos, a number of friends, sponsors and colleagues have assisted me

in a variety of ways over the years, including Bounleuang Insisienmay at

the Ministry of Trade and Tourism, Bountheuang Mounlasy, Bountiem

Phissamay and Bounnhang Sengchandavong at the Ministry of External

Economic Relations, Himmakone Manodham, Oudone Vathanaxay and

Phetsamone Viraphanth at the Ministry of Communication, Transport,

Post and Construction, Khamphan Simmalavong at the Ministry of Com￾merce, Khamphou Laysouthisakd at the Chamber of Commerce and

Industry, Liang Insisiengmay at the Tax Department, Noktham

Ratanavong at the Ministry of Commerce and Tourism, Sitaheng Ras￾x Preface

phone at the Ministry of Agriculture and Forestry and Sommano Pholsena

at the Ministry of Industry.

Richard M. Millar and Maurice Dewulf with the United Nations Devel￾opment Programme, William F. Beachner and Geoffrey W. Hyles with the

United Nations International Drug Control Programme, Randall C.

Merris with the Asian Development Bank, and Arne Hansson and Martin

Kerridge with SWECO contributed helpful information and insight on

development issues in Laos. From the private sector, I would like to thank

Olle Andersson with SweRoad, Lee Bigelow with the Hunt Oil Company,

Chanphéng Bounnaphol with Entreprise Oil, Harold Christensen and

Panh Phomsombath with Lao Survey and Exploration Services, Ted Gloor

at Petrotech, Bjarne Jeppesen at Champion Wood Investment, Thommy

Johansson with Skanska International Civil Engineering, Sumphorn Man￾odham at Burapha Development Consultants and Virachit Philaphandeth

at Phatthana Trading Company for their assistance in understanding

contemporary socioeconomic issues. I also owe a real debt to Jonathan

Rigg at the University of Durham for his support of my work in Laos.

In Vietnam, I owe a special thanks to Ambassador Le Van Bang who

was in the gallery when I testified before the U.S. Senate in 1991 and has

continued to be a source of both inspiration and guidance. I also want to

thank Dao Minh Loc at the Ministry of Water Resources, Le Dang Doanh

at the Central Institute for Economic Management, Le Ngoc Hoan at the

Ministry of Transport, Nguyen Dinh Lam at the National Coal Export￾Import and Material Supply Corporation, Nguyen Minh Thong at the

Ministry of Agriculture and Food Industry, Pham Chi Lan and Nguyen

Duy Khien at the Chamber of Commerce and Industry and Tran Danh

Tao and Tran Ngoc Hien at the Ho Chi Minh National Academy for Polit￾ical Science. Virginia Foote at the United States–Vietnam Trade Council

has provided welcome support and assistance, including the organization

of numerous personal interviews in Vietnam, for many years.

In Cambodia, I would like to thank several people for assistance at dif￾ferent times, including David W. Ashley when he worked in the Ministry

of Economics and Finance, Sophal Ear and Michael Hayes, editor of the

Phnom Penh Post.

An earlier version of part of Chapter 4 appeared in Asian Affairs:

Journal of the Royal Society for Asian Affairs vol. 24, no. 3, October 1993,

pp. 304–14 and in Asian Affairs: An American Review vol. 21, no. 4,

Winter 1995, pp. 227–40. An earlier version of part of Chapter 5 appeared

in Contemporary Southeast Asia vol. 17, no. 3, December 1995, pp. 265–81

and in Contemporary Southeast Asia vol. 19, no. 2, September 1997, pp.

172–89. I would like to thank Triena Noeline Ong, Managing Editor of

Contemporary Southeast Asia, Michael Sheringham, editor of Asian

Affairs: Journal for the Royal Society for Asian Affairs, and Jannette

Whippy, managing editor of Asian Affairs: An American Review, for their

assistance both in guiding the above articles through publication as well as

Preface xi

for their gracious consent to reproduce the material here in a revised and

updated form.

From the beginning to the end, my family has shared with me both the

frustrations and the rewards of this project. In the process, we have all

enjoyed the opportunity to travel widely in Cambodia, Laos and Vietnam.

Therefore, I would like to dedicate this book to my wife, Carol, and our

sons, Alexander and Nathan.

Ronald Bruce St John

xii Preface

Acronyms

ADB Asian Development Bank

AEM ASEAN Economic Ministers

AFL-CIO American Federation of Labor–Congress of Industrial

Organizations

AFTA ASEAN Free Trade Area

AMBDC ASEAN Mekong Basin Development Cooperation

APEC Asia Pacific Economic Cooperation

ASEAN Association of Southeast Asian Nations

BLDP Buddhist Liberal Democratic Party [Cambodia]

CDC Council for the Development of Cambodia

CGDK Coalition Government of Democratic Kampuchea

CIA Central Intelligence Agency

CIB Cambodian Investment Board

CIDA Canadian International Development Agency

CIF Cost, Insurance and Freight

Comecon Council for Mutual Economic Assistance

COSVN Central Office for South Vietnam

CPK Communist Party of Kampuchea

CPP Cambodian People’s Party

CRDB Cambodian Rehabilitation and Development Board

DK Democratic Kampuchea

DRV Democratic Republic of Vietnam

DRVN Democratic Republic of Viet Nam

ECAFE Economic Commission for Asia and the Far East

EGAT Electricity Generating Authority of Thailand

ESCAP Economic and Social Commission for Asia and the Pacific

EU European Union

EWEC East-West Economic Corridor

FBIS Foreign Broadcast Information Service

FCDI Forum for Comprehensive Development of Indochina

FDI Foreign Direct Investment

FFC Fact Finding Committee

FULRO United Front for the Struggle of the Oppressed Races

FUNCINPEC Front Uni National Pour un Cambodge Indépendant,

Neutre, Pacifique, et Coopératif or National United Front

for an Independent, Neutral, Peaceful and Cooperative

Cambodia

GDP Gross Domestic Product

GFI Gross Fixed Investment

GMS Greater Mekong Subregion

GNP Gross National Product

GVN Government of [South] Vietnam

HCMC Ho Chi Minh City

HIV/AIDS Human immunodeficiency virus/acquired

immunodeficiency syndrome

HRD Human Resource Development

ICBV Industrial and Commercial Bank of Vietnam

ICORC International Committee for the Reconstruction of

Cambodia

ICP Indochinese Communist Party

IDBV Investment and Development Bank of Vietnam

IDRC International Development Research Centre of Canada

IMC Interim Mekong Committee

IMF International Monetary Fund

ISEAS Institute of Southeast Asian Studies

ITP Indochinese Trotskyite Party

JBIC Japan Bank for International Cooperation

JIM Jakarta Informal Meeting

JPRS Joint Publications Research Service

KKK Struggle Front of the Khmer of Kampuchea Krom

KNP Khmer Nation Party

KNUFNS Kampuchean National United Front for National

Salvation

KPNLF Khmer People’s National Liberation Front

KPRP Khmer People’s Revolutionary Party

KR Khmer Rouge

Lao PDR Lao People’s Democratic Republic

LCMD Lao Citizens Movement for Democracy

LPDP Lao People’s Democratic Party

LPF Lao Patriotic Front

LPLF Lao People’s Liberation Front

LPRP Lao People’s Revolutionary Party

MACV Military Assistance Command Vietnam

MBDC Mekong Basin Development Cooperation

MDRN Mekong Development Research Network

MFA Multifiber Agreement

MFN Most Favored Nation

MIA Missing In Action

xiv Acronyms

MITI Ministry of Trade and Industry [Japan]

MRC Mekong River Commission

NEM New Economic Mechanism

NGO Nongovernmental Organization

NLF National Liberation Front [South Vietnam]

NLHS Ne Lao Hak Sat (Lao Patriotic Front)

NTR Normal Trade Relations

NUFK National United Front of Kampuchea

NVA North Vietnamese Army

NVN North Vietnam

ODA Official Development Assistance

OPIC Overseas Private Investment Corporation

PAVN People’s Army of Vietnam

PDK Party of Democratic Kampuchea

PGNU Provisional Government of National Union

PL Pathet Lao

PLA People’s Liberation Army [Vietnam]

PNGC Provisional National Government of Cambodia

PRC People’s Republic of China

PRG Provisional Revolutionary Government [South Vietnam]

PRK People’s Republic of Kampuchea

RGC Royal Government of Cambodia

RGNU Royal Government of National Union [Cambodia]

RKG Royal Khmer Government

RLA Royal Lao Army

RLG Royal Lao Government

RVN Republic of Vietnam

SARS severe acute respiratory syndrome

SCCI State Committee for Cooperation and Investment

SEATO Southeast Asia Treaty Organization

SNC Supreme National Council [Vietnam]

SOC State of Cambodia

SPA Supreme People’s Assembly [Vietnam]

SRP Sam Rainsy Party

SRV Socialist Republic of Vietnam

SVN South Vietnam

TVA Tennessee Valley Authority

UBCV Unified Buddhist Church of Vietnam

UN United Nations

UNDP United Nations Development Program

UNF United National Front [Vietnam]

UNHCR United Nations High Commission for Refugees

UNTAC United Nations Transitional Authority in Cambodia

VBA Vietnam Bank for Agriculture

VCP Vietnam Communist Party

Acronyms xv