Indochina (Socialist Indochina)

Democratic Republic of Indochina
Đông Dương Dân chủ Cộng hòa
Timeline: Socialist Indochina
OTL equivalent: Vietnam, Laos and Cambodia

Flag de facto Coat of Arms Location of Indochina Motto Độc lập - Tự do - Hạnh phúc ("Independence - Freedom - Happiness")
Capital	Hanoi
Largest city	Ho Chi Minh City
Other cities	Vientiane, Phnom Penh, Da Nang, Hai Phong, Can Tho, Pakxe, Sihanoukville
Demonym	Indochinese (also Vietnamese, Laos and Cambodian)
Government	Federal dominant-party socialist republic
Legislature	Federal Assembly of Indochina
President	Nguyễn Xuân Phúc
General Secretary	Võ Văn Thưởng
Prime Minister	Saleumxay Kommasith
Area	749,998 km²
Population	120,884,400
GDP   Total:	$ 743,922,597,600
per capita	$ 6,154
Independence	from France
declared	2nd September 1945
recognized	11th December 1958
Currency	Indochinese piastre (INP)
Time Zone	GMT +7
Driving Side	right
Calling Code	+843
Internet TLD	.in
Organizations	UN, WHO, WTO, ASEAN, APEC, IMF, WB

Indochina (Vietnamese: Đông Dương, Laotian: ອິນດູຈີນ, Khmer:ឥណ្ឌូចិន), formally known as Democratic Republic of Indochina (Vietnamese: Đông Dương Dân chủ Cộng hòa; Laotian: ສາທາລະນະລັດປະຊາທິປະໄຕອິນດູຈີນ, Khmer: សាធារណរដ្ឋប្រជាធិបតេយ្យឥណ្ឌូចិន) is a country in Southeast Asia. It is located at the eastern edge of the Indochinese Peninsula, and is divided into three federal state which composed of 55 provinces and 7 municipalities, covering 749,998 square kilometres, with a population of over 118 million inhabitants, making it 12th most populous country. It shares border to China in the north, Myanmar and Thailand to the west, while sharing maritime border with the Philippines, Indonesia and Malaysia through South China Sea.

After winning the Indochinese War, the Indochinese began to restore the economy and implement large-scale industrialization with skilled workers in the North by the reforms of New Economic Mechanism, which was implemented by Hungary a year earlier, while in the South, they began to implement a mixed economy with an increase of industrialization. At the same time, an agrarian reform in the North implemented, which give farmers land to work, although including collectivization. The result is the economic booming in both the war-torn region of the North and the South, which led to the economic miracle, starting from the mid-late 60's.

In 1978, Indochina joined the COMECON and WB, which led to significant deterioration of Sino-Indochinese relations, causing to the Sino-Indochinese Border War, which led Indochina to be increasingly pro-Soviet until 1985, when the reformist government reintroduced the market economy and liberalize press. Currently, Indochina is a regional power and considered to be a middle power in international affairs. It is a member of United Nations, Association of South East Asian Nations, International Monetary Fund, World Bank, World Trade Organization, World Health Organization, International Organization of Francophone Countries, Asia-Pacific Economic Cooperation.

History

Formation and Indochinese War (1945-56)

In early 40's, the independence movements in regions within Indochina began to unite. The two largest movements were the Free Indochina, which was the big tent faction led by the Socialist Party of Indochina (the federal branches were the Viet Minh, Lao Issara and Khmer Issarak) and the National Independence Movement, which led by the Nationalists, the Revolutionary Party. Other independence movements were the Cao Dai, Binh Xuyen and Hoa Hao. Those three movements were loosely coordinated unlike the two big movements. The Binh Xuyen and Cao Dai movement was sympathize with the Viet Minh while the Hoa Hao movement was neutral and considering negotiations is the only choice.

Preparation for the War, conducted by the Assembly (1946)

On March 1945, the Japanese overthrown French and began to make puppet states: the Empire of Vietnam, the Luang Prabang and the Khmer Kingdom to calm the independence movements down. However, those independence movements were pro-Allies and were especially supported by the OSS (the Free Indochina and the National Independence Movement). The Japanese began to hoarding food from the Vietnamese farmers, together with leaderless administration, inefficient planning, caused the 1945 famine, of which about a million people died. At this point, the Indochinese were become outrage with what was happening and together with independence movements, began a revolution.

On 15 August 1945, after hearing the Emperor Hirohito's surrender to the Allies, the National Movement and Free Indochina began a demonstration against the Japanese, which would led to a revolution after that. In Hanoi, about 30 thousand people demonstrate at the Opera House and the Governor-General HQ, with the support of the National Guard. In the South, Huynh Phu So and Tran Van Giau began to formed a grand coalition in order to prevent potential French invasion. At Laos, Souphanouvong led the Laotian branch of the Free Indochina and took Vientiane. At Phnom Penh, Norodom Sihanouk decided to resigned and handed power to Son Ngoc Minh. The revolution ended in 23 August, and the government proclaimed independence in 2nd September and forming the 450-seat Constituent Assembly, with 2/3 belongs to the Free Indochina and another 1/3 belongs to the Nationals.

Artillery in Southern Region (1953)

The new government and the opposition began to cooperate as a provisional and war cabinet. Major economic reforms were implemented by the consensus of two sides, and internal stability was restored. However, on September 1946, the Nationals began to attack the government on large-scale at the Federal Assembly. The government decided to fire two ministers from the Nationals and only gave them minor positions in the government. The unity of the Assembly only partially restored when the French invaded Indochina again on December 1946, violating the Fontainebleau Treaty between Indochina and the Fourth French Republic. The Right, although partially sympathize to the French, rejoined the government with 5 ministers (in charge of Industry and Foreign Trade, others without portfolio). Nationalist militias joined the Indochinese National Army led by Vo Nguyen Giap and Duong Van Duong. With anti-colonialism rise amongst the people, the war was a big toll for the French and for the second time, requesting the American reinforcements. The American reinforcements was provided in the South, of which militias led by Mayor of Saigon Tran Van Giau attacked fiercely at the forests.

At Vientiane, the movement performed well since it has the supports of the left-wing (majority) elements of the former Royal Family, led by Sisavang Vatthana. The Free Indochina and National Movement cooperated militarily at the region of the South, providing support to the East (Vietnam). Huynh Phu So also cooperated the National Movement to defend the rural regions in the South. Some even include suicidal attacks on the enemy vehicles. Later on, the National Army (a merger of National Guard and other militias) received aids and vehicles from the Chinese and the Soviets, of which the latter helped on the anti-aircraft attack. In order to made the war advantage for the French, they decided to form another army, led by Nguyen Van Hinh, a Vietnamese officers who was in the French Foreign Legion. Hinh was promoted to Major General and was in charge of the anti-communist forces. However, this couldn't improved the performance of the French and finally, on 3rd May, 1956, the French surrendered and re-recognized the DRI.

First economic miracle (1956-79)

The government of Indochina began to introduce large-scale industrialization in potential regions that could be profitable, while importing agricultural technologies from the West to restore the economy. The first reform is to introduce the New Economic Mechanism, which was a copy of the Hungarian reform of the same name in 1956, after the failed Hungarian Revolution. This allowed some indicative planning in the regions that was not being war-torn. With prices, the government decided to introduce three groups: fixed prices, limited prices and free prices. Most of the goods were in the group 2 and 3 during the late 1960's. The economic relations between the new Republic and the West becoming increasingly close in order to balance the trade with the East.

With the foreign and diaspora policy, in 1968, the government decided to reconciliate with the non-communists and welcomed them to the leadership. Most of the non-communists were in the South and only wanted to their livings. The government, after the disastrous land reform in the South (1955), had to pay back some of the properties to the individuals who had suffered during the reform. The new mayor of Saigon, 46 years old Vo Van Kiet (Secretary of the Central Committee), decided to reform the economy further. He decided that the majority of the state business, which were composed of skilled workers and pro-privatization managers should be allowed to gain autonomy in the business (although not separating from the State, however), to produce more according to the demand and increase transparency in the economy.

With other parties, the government decided to allow them to join the National Front, allow them to exist as the smaller, puppet parties. Some conservative faction decided to flee from Indochina and set refugee to the West. This effectively made the country to be a federal dominant-party socialist republic by 1974. At the same time, partial liberalization of the press were introduced, to allow some criticism of the minor wrongdoings of the Party. Chief of Staff of the Government Le Trong Nghia explained that those economic and political reforms would made the party more transparent, efficient and less corrupt.

The GDP during the economic miracle grew about 7.4 to 8.4 %, which provided it's citizen a good income and living standards. Infrastructure was also improved, especially with the railroads. The government enjoyed the popularity it had never been since 1945. The military modernization with combination of guerilla tactics and traditional tactics were introduced, provided a probably ready armed forces for a large-scale war. The Central Committee would have it's powers increase from the Federal Assembly and the increase influence led by the pro-defense part of the Socialist Party led to a suspicion with a war with China, especially with it's deteriorated relations since 1978, when Indochina joined COMECON, an Eastern Bloc economic community.

Tension and stagnation (1979-85)

40th Anniversary of the Republic, 1985

On 17th February, 1979, Chinese divisions began to attack Indochinese borders as a "lesson" to Indochina as the latter became predominantly pro-Soviet. The Chinese attack concentrated in three provinces: Lao Cai, Cao Bang and Lang Son. With two organized armies combatting each other, the war was neither benefitted for both sides as the latter began to attack Southern Yunnan after pushed the Chinese backed to it's borders on March. On June, both sides signed the ceasefire and ended the conflict. The casualties was estimated to be 50,000 total. The attack proved that both sides could be capable of defending themselves in case of having a large-scale, non-nuclear war. For the Indochinese, the army reputation was improved after 23 years of permanent peace.

Doan Duy Thanh and Vo Nguyen Giap (two men at the left) visiting Hai Phong, to advocate for reform

Although had to suffering the war on the north, the economy still grow about 3.8% after the war. However, this would let a huge impact on the Northern infrastructure and the General Department of the Railway. As a result, the government had to request Soviet support of $2 billion, of which only a half was provided. Later, the aid was increase to $2 billion USD but the restoration of infrastructure was hard due to the complicated bureaucracy and the return of unrealistic centrally-planned economy in the war-torn regions. The stagnation era began officially in 1979. The financial crisis also began about 2 years after that, when the piastre was inflated to 700% by 1984. The official rate with USD was 10,78:1 but by 1984, it was 1486,32:1.

At the same time, the foreign relations with the West was worsen, as the US and UK had elected anti-communist leaders (Reagan and Thatcher, respectively), which made policies to invest less on Indochina and to implement an embargo on it. This even put a significant toll on the Indochinese economy, which was in the stagnation already. Increasing military spending also put the economy to even further stagnation, with about 7% invested on defense alone. So to publicize the new strategy of the Party, during the 40th Anniversary of the Republic, acting General Secretary Truong Chinh (replaced Le Duan, who was in retirement) proclaimed: "The Indochinese government and it's people are ready to cooperate and to make friends with any country in the world, regardless of differences, to benefit the national interests."

In order to prevent the crisis, the Socialist Party began to change it's politburo with more young, reformative members. Younger members of the Secretariat like Thongsing Thammavong (Deputy Secretary of the Organizational Bureau), Nguyen Van An (Secretary of the Economy), Doan Duy Thanh (Deputy Prime Minister in charge of Macroeconomy) and Heng Samrin (Secretary of the Agitprop Department) were elected to the Politburo in 1981 Congress. With reformers in the Politburo, they were promoted to the top. Vo Van Kiet became President, Nguyen Van Linh became General Secretary, Oudom Khattigna was elected as President of the Federal Assembly while Norodom Ranadiddh remained as Prime Minister. This signaled a reform movement which would be implemented on the 6th Central Committee Conference.

However, a naval war occurred in the East Sea/South China Sea in 1983 when the Chinese began to send frigates and corvettes to the Union South Banks, to be reacted with missile boats from the Indochinese Navy. Although damaged two frigates significantly, making them partially retreat, the forces still had to suffer 51 casualties, including two officers. This would damaged the Sino-Indochinese relations even further, even though the cooperation increases time by time.

Reform and second economic miracle (1985-now)

Second Secretary Nguyen Van Linh at the XIth Congress

The government decided to reform the country, as noted in the Action Programme of the Socialist Party in 1980 (implemented in 1985). This include: the full transition to market economy with limited state intervention to combat potential economic crisis, the introduction of stock exchange (formation of five stock exchanges in Indochina), de-collectivization (to allow farmers to have their own land), increasing production of the consumer goods and encouraging foreign investments (as introduced on 1984 Law on Foreign Investment, enacted in 1988) and privatizing some of the inefficient SOEs, others will began to gain autonomy to gain profit. The 8th Five-Year Plan of the Party decided to not to give the specific quota on every sectors of the economy, but only to restructuring and improve the economic growth into 7.8%. The new five-year plan also encourage less dependent on the Soviet and Eastern Bloc imports.

The foreign policy was also changed. With the Chinese, the government decided to reconciliate after wars in 1979 and 1983. The first signal of reconciliation is the visit of Indochinese First Deputy Foreign Minister to Beijing and negotiated with Li Peng and Qiao Shi. The negotiations allows two opponents to reopen their embassies, allowing trade with each other, and to allow investments on multiple sectors. With the US and the UK, the government decided to re-cooperate on some issues such as investment with industry, machinery and agriculture. The new government also try to negotiate with the US and the UK on importing the weapons, especially naval artilleries and air defense weapons. This met with fierce opposition from the conservatives governments of Reagan and Thatcher, but later approved with high restrictions from Bush and Major. With the Soviet Union, the relations was from reliance downed to mutual cooperation after Gorbachev came power. Although the relations between two nations was bad, but the reformist leadership decided not to support the GkCHP during the August Coup and partially support the continuation of the USSR as a confederation.

The economy was improved as a result. The GDP per capita were increase by 47% to $ 812, living standards were improved, infrastructure recovery in the North was fasten, profitability was increases in business. The amount of private business was doubled compared to the 7th Five-Year Plan, which increased competitivity of the economy, foreign investments flowed (mostly from the East Asia countries, especially Japan and South Korea), and financially, the country was stabilized (inflation was about 10-12%). The reforms also gives the countries a new group of oligarchs, which composed of 9% of the economy. However, the majority of the economy was influenced by the state-owned enterprises, which only be solved by the 1990 (9th) Congress, which encourage more private businesses, and allow the formation of subsidiaries in a company.

The new government joined the ASEAN in 1994, increase it to 7 members. During the period of 1995-97, the economy grew about 8-8.6%, which was due to the final removal of trade tariff of the United States and China, which gave Indochinese people big markets for electronic and consumer goods. In order to benefit from new markets even further, the ICCI (Indochinese Chamber of Commerce and Industry) was formed, led by Minister of Industry and Trade. The market economy also benefitted the armed forces, which needs budget and profit for the modernization. The Central Committee also de facto abolished state-owned collectives on most of the sectors of agriculture, and the federal economy was improved. However, it also began a series of corruption in mid-ranking officials, which was later spread to state-owned banks.

At the 10th Congress in 1995, the new quadrumvir was introduced: Nguyen Van An (General Secretary), Doan Duy Thanh (President), Thongsing Thammavong (Prime Minister) and Norodom Ranadiddh was appointed President of the Federal Assembly. At this point the government had to combat of a potential high inflation due to the high interest rates of national banks in surrounding countries. The new government, specifically, the National Bank, led by Governor Nguyen Tan Dung, decided to lowered the interest rates and loosened it's fixed prices on piastre. And by 1997, during the Asian Financial Crisis, Indochina was one of the least affected due to the trade with other ASEAN countries was not significant (most of the trade were to do with the EU, USA and the Commonwealth). However, inflation was risen to 86% and the economic growth was slowed down to 4.3%.

By 11th Congress in 2000, the new Party Charter was introduced. In the new party charter, it allows private businessmen to join the Party and at the same time, allows Party members to make private business. It also formally introduced market socialism as the new type of economic structure. The new Charter also approves some cultural freedom as a way to increase creativity while maintaining the "Grand Unity" policy. The national television also broadcast more programmes to provide, including importing foreign television ideas to satisfy viewers. Internet was also introduced, although forming a firewall against "reactionary" websites.

In 2009, Indochina began to suffered by the world economic crisis, slowed down the growth rate by a fourth (which means only 2.1% by 2008) and another high inflation (110.86%). People's income suffered, and the government suffered another decrease in popularity since 1981. The new economic package, designed by the First Deputy Prime Minister Nguyen Tan Dung and formally proposed by the Central Committee. Although the new package steadily increase the economic growth, but it also increase corruption within the Government and the Federal Bank. Head of the Control Commission, Nguyen Ba Thanh, announced that there was an increase of corruption in the Party and the Cabinet.

A demonstrator showing signs against China (2014)

In summer 2014, the Chinese began to put oil platform on Indochina's Special Economic Zone. This sparked off spontaneous demonstrations throughout Indochina. The first protest started on 10 May, with some support from government officials. By 16 May, the protest was spread through the Western part of Indochina, including the International Business Center of Sihanoukville, where the majority of Chinese businesses was worked. The largest protests was in May 25, when few hundred thousands people demonstrated in 9 municipalities and another few thousands in Chinese factories. The government officially announced support the patriotism of the country, while speaking against actions such as looting, lynching and destroying properties. The protests only ended when the Chinese withdraw temporarily their oil platform on 10th of August.

Politics and government

The Democratic Republic of Indochina is a federal Marxist-Leninist dominant-party socialist republic, with the leading role belongs to the Socialist Party of Indochina (SPI) . Although Indochina proclaimed it is officially committed to socialism, as in the Constitution, its economic policies is increasingly capitalist, and being described as "capitalist communists". Also under the Constitution, the Socialist Party asserts their role in all branches of their politics and society, while maintaining other parties (the National Party, the Democratic Party) to cooperate and follow the Party line. The President is the elected head of state, holding the position of Chairman of the Security Council (commander-in-chief of the armed forces), also performing executive functions and state appointments and setting policies.

Leadership of the Socialist Indochina

Võ Văn Thưởng	Nguyễn Xuân Phúc	Saleumxay Kommasith	Sonexay Siphandone
General Secretary of the CC	President of the DRI	Prime Minister of the DRI	Federal Assembly President

The General Secretary of the Central Committee performs numerous key administrative functions, controlling national and federal's party organizations. The prime minister is the head of government, presiding a cabinet of ministers and the heads of 26 ministries and commissions. Only political organizations endorse or ally with the SPI are permitted to contest elections in Indochina. These include the National Front and workers, trade unionist parties.

The unicameral Federal Assembly of Indochina composed of 750 members. Head by a chairman, it is superior to both administrative and judicial branches, with all government members are elected from National Assembly members. The Federal Supreme Court, headed by a chief justice, is the country's highest court of appeal, though it is answerable to the Federal Assembly. Beneath the Supreme Court are municipal courts and local courts. The military courts possess special jurisdiction in matters of state security.

Economy

Economy of Democratic Indochina
Saigon-Ho Chi Minh City, center of the economy
Rank	21st (nominal) 17th (PPP)
Currency	Indochinese piastre (INP)
Fixed exchange rates	1 USD = 13,250 INP
Fiscal year	Calendar year
Trade organisations	AFTA, WTO, APEC, ASEAN, FAO
Statistics
GDP	$ 743,922,597,600 (nominal) $ 1,857,922,543,800 (PPP)
GDP growth	3.4% (2020f); 6.8% (2021f)
GDP per capita	$ 6,154 (nominal); $ 15,369 (PPP)
Inflation (CPI)	2.3 % (2018)
External
Public finances
All values, unless otherwise stated, are in US dollars

The economy of Indochina is a market economy, which is the 21st-largest in the world as measured in nominal gross domestic product and 17th-largest in the world as measured in Purchasing Power Parity. Indochina is a member of Asia-Pacific Economic Cooperation, Association of South East Asian Nations and the World Trade Organization.

In 1982, during the 4th Plenum of the Central Committee, the Socialist Party reintroduced the market economy as a part of the Renovation-New Mechanism reform. Private ownership began to be encouraged in industry, commerce and agriculture and state enterprises were restructured and gained more autonomy to operate under market restraints. This led to the five-year economic plans being changed from specific quota planning to indicative planning one. As a result of these reforms, the economic of Indochina grew 8-9% during 1990's and 2000's.

In the 21st century, Indochina is in the process of being integrated to the global economy. Almost all Indochinese are small and medium enterprises (SMEs), with an increase in big private enterprises, mostly in transports and real estates. It is also seeing an increase on foreign direct investment, of which it relies on to attract the capital from overseas to support its' economic rigor.