This study investigates the multifaceted repatriation experiences of Vietnamese individuals who voluntarily returned from Thailand to the upland region of Thanh Hóa province between 1963 and 1965. Utilizing a historical and ethnographic approach, with interviews conducted in February, March, and April 2019; January 2020; May 2022; December 2023; and January 2024, it examines the intricate interplay of political, social, and cultural dynamics that shaped the repatriation process. The study highlights the relocation and deprivation of rights faced by the returnees, emphasizing the political complexities of repatriation. Through a multi-level analysis, this study reveals the intricate relationship between capital management, everyday life practices, and identity contestation. Additionally, it examines the collectivization and nationalist policies of Vietnam in relation to the voluntarily repatriated people’s commitment to work for the nation. In this case, transculturality served as a pivotal element in the construction of place and identity. The study analyzes the various forms of capital that shape individual and collective identities. By engaging in transcultural and localized processes of everyday life practices, returnees exercised various kinds of capital to enhance the efficiency of workers’ cooperatives. This led to new regulations supplementing those of the state, resulting in a variety of efficient cooperatives. Consequently, the repatriated peoples’ home village transformed from a symbol of national betrayal to a thriving cultural and economic hub. This study contributes to a deeper understanding of the multifaceted complexity of repatriation and its implications for identity construction, placemaking, and economic development.