Vietnam’s recent decision to cancel deals for oil and gas activities in waters around Vanguard Bank has caused significant financial and reputational damage. ISEAS academic Le Hong Hiep says while there are several reasons for Vietnam cancelling the deals, Chinese pressure is high on the list and Hanoi needs to rethink its strategy to avoid similar incidents in the future.
Vietnam stands to benefit from MNCs’ efforts to diversify their production base beyond China. How much it will actually benefit, however, depends on how fast it can roll out measures to further improve its infrastructure and business environment.
This week, the USS Theodore Roosevelt will become the second US aircraft carrier to visit Vietnam since the end of the Vietnam War. While it is in Vietnam's interest to maintain a stable relationship with China due to strong economic ties, on matters of strategic interest, Vietnam finds no other power more compatible to work with than the US, to create a counterbalance against China.