[S.Vietnam 4] When Religion Makes the State: Cao Dai, Hoa Hao, and Binh Xuyen

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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