Trump’s aid freeze could disrupt progress in US-Vietnam reconciliation
Suspending USAID programmes risks undermining years of work building trust between the former enemies and helping victims of the Vietnam War.
Cooperation in addressing war legacy is the cornerstone of the Vietnam-US comprehensive strategic partnership (CSP), a relationship built on decades of painstaking reconciliation efforts. Given the two countries’ past hostilities and the enduring consequences of the Vietnam War, this cooperation has been vital in building trust. US President Donald Trump’s decision to suspend foreign aid for 90 days risks unravelling that progress while raising doubts about the US as a reliable partner.
The US effort to heal the wounds of war began in 1989 through the Patrick J. Leahy War Victims Fund, which assisted Vietnamese victims of unexploded ordnance or UXO (weapons that did not explode when deployed). Subsequently, in 1994, the US State Department launched initiatives supporting UXO clearance, risk education, survivor assistance and capacity development in Vietnam. These initiatives, combined with Vietnam’s cooperation in searching for American soldiers missing in action, helped rebuild trust between the former enemies, paving the way for normalisation in 1995.
US assistance for UXO remediation in Vietnam, which totalled US$230 million by 2024, has been transformative. It has empowered Vietnamese local government and non-governmental actors to conduct extensive clearance operations in heavily contaminated provinces. In Quang Tri — the most affected province — US-funded programmes have reduced annual UXO casualties from the hundreds in the early 2000s to nearly zero in recent years.
The largest amount of US aid has been allocated to addressing the consequences of Agent Orange — the dioxin-contaminated defoliant deployed by the US Air Force during the war between 1961 and 1971. This spraying caused extensive ecological damage and continues to affect millions of Vietnamese. Dioxin has been linked to a wide range of serious health issues and disabilities, affecting not only those directly exposed but also their descendants.
Since 2007, through the United States Agency for International Development (USAID), the US Congress has channelled more than US$500 million into dioxin hotspot remediation and disability programmes in Vietnamese provinces heavily sprayed with Agent Orange. The Vietnam Ministry of Defence (MOD) and USAID successfully completed the clean-up of a dioxin hotspot at the Da Nang Airbase in 2018 with US$110 million in funding. The two sides are engaged in a US$300 million project to decontaminate about 500,000 cubic metres of toxic soil at Bien Hoa Airbase, the largest remaining dioxin hotspot. Shortly before Trump’s aid cut, USAID had secured an additional US$130 million for the project from its government.
USAID-funded disability programmes provide rehabilitation therapy, assistive devices, home care, and other social support services to thousands of people with severe disabilities that are likely linked to Agent Orange exposure or an encounter with a UXO. USAID works closely with Vietnam MOD and coordinates with the Ministry of Public Health, Ministry of Labour, Invalids and Social Affairs, and local organisations in implementing these programmes.
…thousands of families that were benefitting from US-funded disability programmes have abruptly lost a major source of help.
Fortunately, Vietnam is not overly reliant on US aid to address war consequences. The country has its own national programmes and collaborates with other international partners to deal with UXO and Agent Orange contamination. US annual aid constitutes only a fraction of what Vietnam spends. While the US allocates about US$30 million per year for disability programmes that benefit thousands of Vietnamese affected by Agent Orange, Vietnam invests US$400 million (10 trillion dong) annually in monthly allowances, healthcare, and rehabilitation for millions of victims. From 2010 to 2020, it mobilised around US$420 million from domestic sources for UXO clearance — nearly double what the US has provided over 30 years.
However, the US aid halt has considerable consequences on the ground. In Quang Tri Province, over 1,000 demining personnel have been temporarily laid off. Vietnam has raised concerns about how the suspension of UXO clearance activities and the clean-up work at Bien Hoa could pose serious risks to public health and the environment in affected areas.
Meanwhile, thousands of families that were benefitting from US-funded disability programmes have abruptly lost a major source of help. This will also affect local social services and NGO partnerships that were moving into position to sustain these families after US assistance ceases.
Following these disruptions, Vietnam has been seeking to lobby the US government to unfreeze aid for war legacy cooperation. The Quang Tri Provincial Department of Foreign Affairs is coordinating with international partners to advise the Provincial People’s Committee on requesting continued US funding for UXO clearance and disability programmes.
At the national level, on 13 February, Vietnam voiced deep concern over the USAID decision and communicated its desire to continue war legacy cooperation with the US. A week earlier, Vietnamese Defence Minister Phan Van Giang and US Secretary of Defence Pete Hegseth spoke by phone. Giang stressed the importance of “continued US support for dioxin remediation at Bien Hoa Airbase, assistance to people with disabilities, bomb and mine clearance, and the search and repatriation of Vietnamese soldiers’ remains”. Meanwhile, Hegseth expressed the Trump administration’s interest in enhancing defence ties with Vietnam, with a focus on war remediation efforts. This signals that both sides will work towards resuming war legacy cooperation.
Trump’s foreign aid overhaul aims to realign funding with US national interests, which should include strengthening ties with Vietnam, a key Indo-Pacific partner. Vietnamese leaders have repeatedly stressed that war legacy cooperation is the prerequisite for stronger defence ties between the two countries. If Washington truly values its CSP with Hanoi, it must act decisively to exempt humanitarian initiatives related to war legacy from the aid freeze.
This is not just about funding. Vietnam has demonstrated its ability to mobilise its own resources and engage with other international partners. At stake is US credibility. Washington cannot expect to deepen strategic cooperation with Hanoi while undermining the long-standing trust-building process and what Vietnam sees as a US moral obligation.
By Phan Xuan Dung – Fulcrum.sg / ISEAS – Yusof Ishak Institute – February 21 , 2025