VIETNAM: TO BURY THE PAST

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THE REVIEWING STANDS ARE UP; THE COMMEMORATIVE billboards are in place along the parade route and Ho Chi Minh City, formerly Saigon, is bracing for the 20th anniversary of the end of the Vietnam War. Network stars and war correspondents such as Dan Rather and Peter Arnett will be reporting from the roof of the old U.S. embassy and the Ho Chi Minh Trail. Veterans' groups and congressional fact-finding delegations are swarming over the country. Instead of simply reliving the war, though, the visitors are discovering the new Vietnam, where rooftop satellite dishes and joint-venture hotels signal the emergence of one of the world's newest success stories.

The Vietnamese are more ambivalent about April 30. Though the economy is expanding at an annual rate of 8%, there is much uncertainty about China's growing assertiveness in the region, about the aging communist leadership's reluctance to step aside and about whether prosperity is eroding the socialist values on which modern Vietnam was founded. In Hanoi, where the anniversary celebrations will be more muted, Prime Minister Vo Van Kiet, 74, last week talked about such concerns with a group of Time editors led by managing editor James R. Gaines. Excerpts from the interview:

TIME: Isn't it ironic that one of the U.S. motives in the war--containing China--is still an issue for Vietnam?

KIET: We have a long history of fighting to preserve our own national independence. We are located next to a big neighbor whom our ancestors fought. Our nation was under Chinese domination for more than 1,000 years. The latest incident was in 1979, when China sent more than 500,000 troops to attack our country on the northern border. In 1979 we won over China in the border war, but not because of our comparative advantage in military force. We won the war because we had the right to defend our country. I would like to emphasize our consistent policy of creating peace and stability not only in Vietnam but also in other countries in the region. We have consistently asserted our sovereignty and our jurisdiction over the Spratly and Paracel islands since we do have the evidence and grounds for that. All the parties concerned-Vietnam, China, the Philippines, Malaysia, Taiwan and Brunei-should together negotiate to find a solution to the dispute. It is not our policy to deal with this issue bilaterally.

TIME: Is Vietnam stuck in a "twilight zone" between a command economy and a market economy?

KIET: We are currently shifting from an old mechanism to a new mechanism. We are not stuck at all between the two. Sometimes it is hard to overcome old habits. But we are fully convinced we can overcome poverty.

TIME: What about the opposition to reform in Vietnam?

KIET: No policy is ever supported 100%. However, the degree of unanimity on reform is only increasing. There are some who want to accelerate the pace and those who want it to slow down. My hope is that the results of the process will convince them to maintain confidence. At this point there is no major obstacle facing us.

TIME: Can Vietnam open up its economy without opening up its political system?