Vietnam’s intention was never to maintain a permanent occupation of Cambodia. However, by the late 1980s, a significant decrease in aid from the USSR to the People’s Republic of Kampuchea (PRK) made the occupation increasingly unsustainable for Vietnam. By September 1989, Vietnamese forces had completely withdrawn, marking the end of a decade-long military presence in the country.

Shortly after the withdrawal, the PRK government rebranded the nation as the State of Cambodia (SOC). Despite the change in name, the country remained in a dire financial situation, virtually bankrupt. Aid was almost nonexistent, leading to severe shortages of electricity and fuel, and the government struggled to provide basic services, including healthcare. Although corruption levels were not as extreme as during previous regimes, it was still prevalent. A small elite, the nouveaux riches, indulged in luxurious lifestyles—building grand villas, driving expensive cars, and dining at upscale restaurants—while the majority of Cambodians struggled to afford basic necessities like rice. A thriving black market on the borders facilitated the illegal export of gems and timber, while consumer goods were smuggled into the country.

As Vietnam withdrew, the Khmer Rouge intensified its military activities, capturing the strategic town of Pailin in 1989. Throughout 1990, they fortified their positions along the Thai border and frequently launched incursions deeper into Cambodian territory, destroying infrastructure such as bridges, mining roads, and attacking villages. By the end of the year, they had established control over significant jungle areas in the northwest and southwest, even threatening key coastal cities like Sihanoukville and Kampot.

In mid-1991, a pivotal shift occurred when the United States and China withdrew their support from the Khmer Rouge, a move that would change the course of Cambodian history. A ceasefire was officially declared in July 1991, and in October of that year, a crucial conference convened in Paris to discuss the future of Cambodia. This conference laid the groundwork for political dialogue and peace negotiations, aiming to stabilize the nation and pave the way for a democratic process.

The aftermath of the Vietnamese withdrawal set the stage for a complex and transformative period in Cambodia’s history, leading to ongoing struggles for political stability and economic recovery.