Courted Land: Vietnam’s Strategic Partnerships

Skillful balancing between completely different partners has put Vietnam in a key position for the region. And the country benefits enormously from this, especially economically.

In Hanoi, the powerful are giving each other their hands. Only last year the two most powerful politicians, US President Joe Biden and China’s head of state Xi Jinping, visited.

It is exciting to watch how the emerging country in Southeast Asia, which has a population of almost 100 million, is being courted by the big players.

Vietnam has entered into a “comprehensive strategic partnership” with the USA, which is the highest diplomatic relationship status. Shortly afterwards, an agreement was reached with China to build a “common future”. And apparently that’s okay for all partners.

Vietnam manages to focus on cooperation and downplay tensions. And at the same time, it also allies itself with other important partners, such as Japan, for example, and thus expands its own network.

“Vietnam doesn’t want to choose between the powers, but wants to be friends with everyone in its own interest. It can use the rivalry to its advantage,” analyzes Huong Le Thu from the non-governmental organization International Crisis Group to the TV station Channel News Asia.

Vietnam is a strategic partner for everyone

Hanoi’s foreign policy is often referred to as “bamboo policy”: pliable and flexible in all directions, but like a bamboo stick, not easy to break.

Political observers have seen a more active role for Vietnam in recent years: the country’s multidirectional foreign policy consists of building a network of different partners in order to keep China in check. “Vietnam manages the great powers,” says Ngyuen Khac Giang, Vietnam expert at the Singapore research institute ISEAS ARD-Interview.

China and Vietnam are linked by ideology: both are communist regimes, authoritarian one-party systems. They also use the relationship with each other to legitimize each other.

But Vietnam, which, as a former ally of the Soviet Union, was hostile to China in the 1970s and 1980s, continues to have a tense relationship with its large neighbor to the north. Vietnam is still in conflict with China over sovereignty claims in the South China Sea and because of China’s increasingly aggressive actions. There is mistrust of the northern neighbor.

In terms of security policy, the USA is therefore of great importance as a partner in the region. The Americans, who were enemies of the war just fifty years ago, have now been declared friends by the victorious Vietnamese.

Growing population, rapid development

The socialist People’s Republic stretches as a narrow country along the west coast of the South China Sea. To the north is the capital Hanoi, to the south is the economic metropolis Ho Chi Minh City, which used to be called Saigon.

Almost 100 million people live in Vietnam. A predominantly young population, with the largest proportion being 30 to 34 year olds. Society is considered to be educational and productive. It’s usually hectic on the streets and the red national flags with the yellow five-pointed star are sold everywhere.

The socialist People’s Republic is developing rapidly. Economic growth was five percent last year, higher than many others. It is considered one of the most dynamic economies in Southeast Asia. This is also why it is courted by everyone, including Europe.

Three years ago the… EU agrees on a free trade agreement (EVFTA)Vietnam has also concluded bilateral trade agreements with other countries.

Vietnam benefits from new strategy

The country is currently benefiting primarily from the diversification strategy of Western companies. “China plus One”: Many countries, including Germany, want to distribute their production sites in order to become more independent from China. This is noticeable in Vietnam: numerous companies are investing in building factories for export business.

Marko Walde heads the German Chamber of Commerce Abroad in Ho Chi Minh City. He also attributes the current boom to the free trade agreement: “Vietnam has an absolute unique selling point in the region.” One of the positive consequences of the company settlements is the further development of provinces that were not previously in focus.

In order to maintain stable success, Vietnam must concentrate on the sustainability demands of its economic partners, for example in energy supply.

The government in Hanoi is doing everything it can to make investments as easy as possible. The country is also ambitious in the high-tech sector and is now focusing on training skilled workers for chip manufacturing.

In addition to China and Brazil, Vietnam has enormous reserves of rare earths, which are used, among other things, for the production of microchips. This raw material treasure also makes the country interesting for international investors who want to make their supply chains more independent of China.

Human rights are a sensitive issue

Vietnam’s increasing geopolitical importance in the power struggle between China and the USA also has its downsides. “Western partners are exerting less pressure to improve the human rights situation in Vietnam,” reports Ngyuen Khac Giang, Vietnam expert at the Singapore research institute ISEAS.

Recently there has been a very tough crackdown on civil society, against environmental organizations for example. The human rights organization Amnesty International writes in its annual report: “Human rights defenders were subjected to harassment, digital surveillance, arbitrary detention and politically motivated prosecution. Torture and other ill-treatment continued to be reported at worrying levels.”