"(Nguyen Cao Ky.).
Bao Dai and loyalist Vietnamese Francophiles created an alternative government in these regions, intensifying debate concerning Vietnam's political future. This outcome can be seen as modest on Vietnams behalf due to the pressure applied from their Chinese and Russian allies to avoid American confrontation and remain a constructive approach to limit American involvement and maintain Vietnamese foreign credibility. However the result was still a major defeat for American diplomacy, having 'lost' half of Vietnam, the US now believed that the peace of the world was now more threatened by expansionary communism.
The resounding victory for Ho and his Vietminh enhanced their status within Vietnam and fuelled their commitment to go on to establishes a united and independent Vietnam. However, the adversities that plagued North and South Vietnam for the last eight years of Guerrilla warfare were still not dealt with and both regimes faced major problems. Consequently, "independence had brought nothing but a reign of terror" (Brawley) on both sides of the 17th parallel.
Leader of the North, Ho Chi Minh aimed at reunifying and consolidate North Vietnamese forces, focusing of Socio- economic issues. 'Enemies of the state' were arrested, re-educated or executed leading to 900,000 Vietnamese Catholics to flee south. Additionally, land reforms and redistribution regimes were successfully implemented to promote self-sufficiency from the south, revitalising a country facing impending famine to a country with the fastest growing economy in South-East Asia. However this success had moral and social implications, "The Agricultural Reform Tribunals" tried and sentenced hundreds of landlords to death. Soon after peasant revolts, the government was required to change its policy to one of "rectification" where officials were demoted. .
Although the defeat brought an end to French colonial efforts in Indochina, the United States soon stepped up to fill the vacuum.