In a historic diplomatic engagement, the United States-Vietnam relations were at a turning point after Biden’s recent visit to Hanoi. The visit resulted in a “comprehensive strategic partnership” that will strengthen bilateral ties to protect global supply chains, provide regional security, and new trade and investment opportunities. This is a significant step forward for both countries and a blow to China.
Vietnam was very careful in deciding to side with Beijing or Washington in fear of offending China. Vietnam still has partnerships with China but with China’s continuous advancements in the South China Sea, which Vietnam holds territorial claims, Vietnam had to find ways to counter China’s assertiveness. By siding with the United States and developing a partnership with a long list of goals, this is a clear message to China that their goals from the Belts and Roads Initiative to assertiveness in the South China Sea are going to be challenged heavily.
Chinese Fleet Partaking in Drills in South China Sea. Image Credits: Str/AFP
One of the talking points was semiconductors and rare earth metals. Vietnam is looking to improve its semiconductor industry and to do this, it is seeking assistance from the U.S. to exchange information and technology. Vietnam is a global manufacturing hub, it seeks to continue its global image but needs more skilled workers. Part of the deal includes training workers to develop semiconductors. Another issue the partnership will address is rare earth minerals. The U.S. needs more earth minerals if it’s going to produce chips and other technological advancements and Vietnam is the second-largest rare earth mineral deposit.
Another talking point; reducing reliance on Russian weaponry and moving towards military assistance from the United States. Vietnam has been a close partner with Russia which supplied Vietnam with its weapons. With the invasion of Ukraine, Vietnam does not want to hurt its public image and plans to purchase ships for their coast guard and unarmed drones for maritime surveillance. There have been calls for future talks to discuss Vietnam purchasing F16s.
This doesn’t mean Vietnam is abandoning its multidirectionalism. Vietnam is still too interconnected with China economically and there have been talks between Vietnamese and Russian officials for an 8 billion dollar loan package to purchase heavy weaponry, a deal that could bypass U.S. sanctions on Russia.
This is the right step forward to challenging the Chinese presence in the region. Vietnam wants to be partners with everyone and Vietnam will be the staging ground to test what a multidirectional policy will look like. If the United States continues to invest continuously militarily and economically, China could put pressure on Vietnam through counteroffers or enhanced presence in the South China Sea, but China and Russia cannot afford to lose Vietnam as a partner as they are a global manufacturing hub. If China puts too much pressure in the South China Sea, Vietnam will continue strengthening their military and economic partnerships with the United States. The U.S. also needs to find ways to prevent the Vietnam-Russia weapons deal from falling through, as it could undermine the credibility of Western sanctions and could lead to a security deal not falling through. Vietnam has to choose carefully where it wants to get its security from and the U.S must emphasize the economic opportunities should Vietnam continue to work with U.S. assistance.
Author: Aleksandros Spaho
