When Religion Makes the State: Cao Dai, Hoa Hao, and Binh Xuyen
Introduction: States Within a State
Imagine a country where:
- A religion has its own army of 30,000
- Another religion controls an entire river delta
- A crime syndicate runs the capital’s police
- The prime minister controls almost nothing
This was South Vietnam in 1954-55.
To understand Diem’s state-building challenge, we must first understand these “states within a state.” This article examines the three great non-state powers: Cao Dai, Hoa Hao, and Binh Xuyen.
1. Cao Dai: The Vatican of Vietnam
Origins: A Religion for Modern Times
Founded: 1926, in Tay Ninh Province
The vision:
- Unify all world religions
- Blend Buddhism, Taoism, Confucianism, Christianity
- Add figures like Victor Hugo, Sun Yat-sen as saints
The appeal:
- Vietnamese seeking spiritual identity under colonialism
- Syncretic approach attracted diverse followers
- Elaborate rituals and hierarchy provided meaning
From Religion to State
By 1954, Cao Dai was not just a religion:
Territory:
- Tay Ninh Province: Effectively Cao Dai land
- The Holy See at Tay Ninh: A Vatican-like compound
- Surrounding villages: Cao Dai administered
Military power:
- 25,000-30,000 armed followers
- French-supplied weapons
- Organized military structure
Administration:
- Own tax collection
- Own courts
- Own schools
- Own social services
The French Connection
Why did France arm a religion?
French calculation:
- Viet Minh = communist threat
- Cao Dai = anti-communist
- Enemy of enemy = friend
The deal:
- France provides weapons and money
- Cao Dai fights Viet Minh in their territory
- Both benefit: France gets allies, Cao Dai gets power
Result by 1954:
- A religious state within the Vietnamese state
- Answering to neither Saigon nor Hanoi
- A permanent challenge to any central government
2. Hoa Hao: Buddhism with Guns
Origins: A Prophet’s Movement
Founded: 1939, by Huynh Phu So
The founder:
- Born sickly, became mystic after illness
- Claimed to be reincarnation of 19th-century prophet
- Preached simplified Buddhism
- Charismatic speaker who drew massive crowds
The doctrine:
- Buddhism without temples (waste of money)
- Direct worship at home
- No elaborate rituals
- Social reform and self-help
From Sect to Army
Geography made the difference:
The Mekong Delta:
- Rice basket of Vietnam
- Maze of rivers and canals
- Difficult for any central authority to control
- Perfect for local autonomy
By 1954:
- 1-2 million followers
- 10,000+ armed fighters
- Control over key Delta provinces
- Own administrative system
The Tragedy of Huynh Phu So
1947: The Viet Minh killed the prophet
The assassination:
- Viet Minh saw Hoa Hao as rival
- Lured Huynh Phu So to “negotiations”
- Executed him
- Body never found
The consequence:
- Hoa Hao became implacably anti-communist
- Fragmented into competing warlord factions
- Each commander claimed the prophet’s legacy
- No single authority to negotiate with
3. Binh Xuyen: The Mafia State
Origins: Pirates and Gangsters
The beginning:
- Originally river pirates in Mekong Delta
- Evolved into organized crime syndicate
- Base: Cholon (Saigon’s Chinese district)
The leader: Le Van Vien (Bay Vien)
- Former river pirate
- Built criminal empire
- Charismatic, ruthless, ambitious
The Business Empire
Binh Xuyen controlled:
- Grand Monde Casino: Saigon’s largest gambling den
- Opium trade: Monopoly on distribution
- Prostitution: Controlled major brothels
- Protection rackets: Extortion from businesses
Revenue: Estimated millions of dollars annually
The Ultimate Prize: The Police
1954: Binh Xuyen bought the Saigon police
How it happened:
- Bao Dai needed money (for his Riviera lifestyle)
- Binh Xuyen offered to pay
- Deal: Binh Xuyen gets police control
- Price: $1.25 million
What this meant:
- Criminals controlled law enforcement
- Police protected criminal enterprises
- Diem’s government couldn’t enforce law in its own capital
4. The Impossible Situation for State-Building
What Diem Faced
A map of power in 1954:
- Saigon: Binh Xuyen (police, crime)
- Tay Ninh: Cao Dai (religious state)
- Mekong Delta: Hoa Hao (fragmented warlords)
- Everywhere else: Contested
The central government controlled:
- Some army units (but loyalty uncertain)
- Some ministries (but little actual power)
- Foreign relations (but dependent on France/US)
Why Couldn’t They Just Coexist?
The fundamental problem:
- State-building requires monopoly on violence
- These groups had their own violence monopolies
- Multiple monopolies = no state
Each group’s perspective:
Cao Dai:
- “We fought communists while Diem was in exile”
- “We’ve governed Tay Ninh for decades”
- “Why should we surrender to a newcomer?”
Hoa Hao:
- “Communists killed our prophet”
- “The Delta is ours by right of blood”
- “No outsider understands our people”
Binh Xuyen:
- “We paid good money for the police”
- “Bao Dai approved it”
- “It’s legal and legitimate”
The State-Building Paradox
Diem needed these forces to fight communists.
But he couldn’t build a state while they existed.
If he integrated them, they would hollow out his state.
If he fought them, he might lose and strengthen communists.
This was the paradox of South Vietnamese state-building: You needed local power to survive, but local power prevented state formation.
5. Historical Comparisons
Europe’s Similar Past
Medieval Europe had similar challenges:
- Church vs. State conflicts
- Feudal lords with private armies
- Cities with autonomous governments
Solution: Centuries of gradual centralization
Diem had: Months, not centuries.
China’s Warlord Era
1916-1928: China faced similar fragmentation
- Regional warlords with private armies
- Central government existed only on paper
- Unification took war and decades
Diem had: War on multiple fronts and American impatience.
Conclusion: The Foundation of Failure
Understanding Cao Dai, Hoa Hao, and Binh Xuyen explains why South Vietnamese state-building was so difficult:
The problem wasn’t just communism.
The problem was that there was no state to begin with.
Diem’s challenge was not just to defeat the Viet Cong. It was to build a state from scratch while:
- Fighting a war
- Negotiating with armed religions
- Confronting organized crime
- Managing foreign patrons
In the next article, we’ll see how Diem attempted to resolve this impossible situation—and what his methods reveal about the nature of state-building itself.
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