Cold blue - done poorly. The blue residue is nitrate salts. You need to get rid of them. You can get rid of the salts on the knife by boiling it, and it won't hurt the knife. Put it in boiling water for 15-20 minutes, bring it out, it will dry fast, so then soak it in WD 40. The WD 40 will displace the water and finish the neutralization of the salts. This is what a gunsmith would do if bluing parts.
The problem is that they have impregnated the leather since the knife was kept there. You can't get them out of the leather. You could try boiling the leather, I'm not sure what effect that would have, but at a minimum, you'd have to recondition it. Most leather has some acid in it due to the tanning process. That's why it's a bad idea to store metal blades in leather sheaths.
The green around the snaps is verdigris, which is the acid in the leather attacking the metal in the snaps. You can get rid of this by using a toothbrush with a little baking soda and water. It takes a fairly long time for verdigris to act, but as long as the metal and leather are in contact it will. Be prepared to clean this up every couple years.
Last, that knife never "saw action". The sheath shows no wear as would be common for a knife in the field. No evidence of being worn at all. I'm not saying it wasn't in Vietnam, but if it was it sat out the whole time in a foot locker.