Vietnam

Vietnam appears to be drawing closer to the US with the recent upgrade in ties to a comprehensive strategic partnership. This development, however, should not be overestimated as Vietnam-China relations, especially party-to-party ties, remain strong.

The historic upgrade in Vietnam-US relations has more to do with economics than defence and security. The recent visit by US President Joe Biden was an opportunity for both sides to strengthen cooperation in areas such as high-tech manufacturing, including semiconductor production. This is part of the US's "de-risking" strategy in dealing with China.

As China becomes more self-sufficient in producing its own goods, South Korea — one of China’s major trading partners — has to look to other countries to reduce its reliance on the Chinese market. Given the growing economic and trade relations, as well as the flourishing people-to-people exchanges, Vietnam has become a top choice for South Korea to expand its market.

Singapore has become Vietnam’s biggest source of foreign investment amid the China-US rivalry and disrupted global supply chain. Several Singaporean companies have established themselves in Vietnam and are playing important roles in helping the local government attract foreign investors. Lianhe Zaobao journalist Yush Chau interviews Singapore entrepreneurs in Vietnam to find out more.

The most common analogy for the US-China rivalry is the Cold War between the US and the Soviet Union, but Malaysian academic Ngeow Chow Bing thinks that the Sino-Soviet rivalry in the 1960s could also offer a lesson or two for the US and China, especially in staying ideologically flexible and maintaining communication between competing nations.

Chinese venture capital funds are flocking to Southeast Asia in search of the next Alibaba and ByteDance. However, given the market’s nascent stage, along with the Chinese funds’ preference for Chinese-affiliated enterprises, options are limited. Liu Sha looks into the challenges these Chinese funds face in finding success in Southeast Asia.

China’s controversial nine-dash line claim to the South China Sea is creating problems for its businesses operating in Vietnam.

While it seems that the port call of the USS Ronald Reagan in Vietnam recently signals a reinvigoration of US-Vietnam military cooperation, Vietnam will be circumspect in ensuring that it does not let the US interfere in its domestic affairs or jeopardise its relationship with China.

While some Vietnamese are wary of Chinese investments, others see it as a good opportunity for their companies, especially SMEs to upgrade and upskill. With new opportunities afforded by investments from countries looking to diversify their supply chains from China, SMEs should be given a boost by the Vietnamese government in order for Vietnam to make the most out of the influx of capital.