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Most Vietnamese in America are from South Vietnam or descended from those from there, so that's probably one of the bigger reasons for their offense.

Which is kinda strange since the VC were very effective.

The VC didn’t call themselves VC. Any Vietnamese person you meet in the US today is unlikely to be “VC”. It’s like calling Germans Nazis.

The NVA won the war eventually

Declaring a name “offensive” to an entire race of people is a stereotype and also offensive.