Upon taking control of the bomb-ravaged country, the Vietnamese communists banned all other political parties and forced public servants and military personnel of the Republic of Vietnam into re-education camps. The government also embarked on a mass campaign of collectivization of farms and factories. Reconstruction of the war-ravaged country was slow, and serious humanitarian and economic problems confronted the communist regime. Millions of people fled the country in crudely built boats, creating an international humanitarian crisis.

In 1978, the Vietnamese army invaded Cambodia (sparking the Cambodian-Vietnamese War) which removed the Khmer Rouge from power. This action worsened relations with China, which launched a brief incursion into northern Vietnam (the Sino-Vietnamese War) in 1979. This conflict caused Vietnam to rely even more heavily on Soviet economic and military aid.