China-Vietnam relations

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 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.

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.

It is not in Vietnam’s national interest to be overly dependent on China or the US. Hanoi is expected to continue to press ahead with efforts to build on its ties with the two major powers as part of its multi-directional foreign policy. There are, however, limits to both approaches. Given General Secretary of the Communist Party of Vietnam Nguyen Phu Trong's health situation, a physical trip to the US may not be feasible, and any diplomacy might have to be carried out long distance.

Diplomatic activities appear to be back at full swing after the 20th Party Congress. Zaobao correspondent Yang Danxu notes that the visits by heads of states to China are driven by Beijing’s objectives of bringing its neighbours close, stabilising relations with Europe, and strengthening relations with developing countries. Will this help improve China’s relations and international image, especially amid the tense geopolitical background?

In this final of a seven-part Lianhe Zaobao-Business Times series on China and ASEAN, Lianhe Zaobao associate foreign news editor Sim Tze Wei travelled to Vietnam for a closer look at its economic rise, and whether “Made in Vietnam” can replace “Made in China”.

It appears that Beijing is losing some of its factory orders with MNCs and investors putting their bets on Vietnam. But maybe it is a win-win situation: as China moves to transition its economy to advanced manufacturing, countries like Vietnam with a young and relatively cheap labour force could fill the gap.

Sokvy Rim explains why Vietnam still chooses to adopt a hedging strategy between the US and China, despite increasing fears of China’s aggressive moves in the South China Sea.