The Vietnam War drew the line between the communist government of North Vietnam with its allies and South Vietnam with the US. After World War II, parts of Vietnam were occupied by Japanese forces with Emperor Bao Dai in charge. At this time, pro-communist Vietnamese political leader Ho Chi Minh took an opportunity to secure his positions in North Vietnam and declared the Democratic Republic of Vietnam. Both Bao Dai and Ho Chi Minh aimed at creating a unified Vietnam. However, the communist rule did not satisfy Japanese Emperor and his western allies.
In course of the war, 3 million people were killed, among them more than a half were Vietnamese civilians. The US forces withdrew in 1973, and the communist forces took control of South Vietnam in 1975. The country was proclaimed the Socialist Republic of Vietnam. The war had an obvious consequence for the country. 2 million Vietnamese were killed and 12 million became refugees. National economy and infrastructure were demolished. As for the US, the country spent about $120 billion on the Vietnam War. The inflation and fuel prices skyrocketed. The veterans returning from war faced negative reaction in the US. This conflict has undermined American understanding of their own invincibility.