The Grand Yarphese Republic was formed on 30 September 1994 after a month of fighting for the possession of Ho Chi Minh City (now Saigon). However, forming the republic involved a complex process. In order to deal with the situation correctly, the Vietnamese Liberation Army decided to put all political planning until immediately after independence.
On 21 August 1999, the Vietnamese Liberation Army sent the frigate VLN Giai Phong and seven submarines from the VLA base near Admiralty Gulf, Western Australia. The VLA reached the coast of Vietnam two days later, quickly surrounding Ho Chi Minh City. The army sent Huỳnh Ngọc Ang to discuss a peaceful transfer of the city to the Vietnamese Liberation Army. After days of discussion, the People's Council agreed to hand over the city for a sum of five-hundred billion Vietnamese Dong. However, the Vietnam People's Army intervened before the sum could be paid.
As a result of this, the Vietnamese Liberation Army and the Vietnam People's Army resorted to open warfare in Saigon. Although there were some VPA victories in the interior, the VLA control of Ho Chi Minh's borders was impassable. In addition, contact with the city was commpletely impossible except through the use of the Internet. Within the following month, the VLA slowly chased the VPA into the city's international airport. According to popular belief, when there was only one runway not controlled by the VLA, the VPA members not taken prisoner boarded an airplane and left. However, most accounts show that the remaining VPA members were escorted to outside the city limits.
The Vietnamese Liberation Army, successful with their exploits, decided to form their republic. The first Yarphese election included all VLA members that left the original VLA base. They elected Aaron Tran (Trầng Chúp Long), age 39, by a 76% majority, to take control of the entire country politically, and Lương Hữu Thắng, aged 33, as his understudy and successor. Tran then went on to create every aspect of his new republic. He named it "Yarphei" after looking at several maps and settled on a name based on a Turkmen town. He changed his name to Tranh Chup-yar, and Thắng's name became Runh Hoe-tanh. Within the next few months, Long worked alone on creating the aspects of the new republic. After presenting all his work to the VLA, everything was quickly approved.
The constitution of Yarphei was also created by Long. However, it was not approved immediately. The ideas for legislature were far too complicated according to VLA members. Thắng took the constitution and rewrote it to his and Long's agreement, but he faced opposition from several leading generals. In the end, the entire legislative system was simplified to its current form.