Foreign relations of Vietnam

Soviet era

During the Vietnam War (1959–75), North Vietnam balanced relations with its two major allies, the Soviet Union and the People's Republic of China.

In 1964, Zhou Enlai, worried about the escalation of U.S. forces in South Vietnam, made an informal agreement with the North. The agreement stipulated that if U.S. and South Vietnamese forces invaded North Vietnam, the Chinese would respond by loaning pilots to the North. During the invasion, Mao Zedong failed to send as many trained pilots as he promised. As a result, the North became more reliant on the Soviet Union for its defense.

By 1975, tension began to grow as Beijing increasingly viewed Vietnam as a potential Soviet instrument to encircle China. Meanwhile, Beijing's increasing support for Cambodia's Khmer Rouge sparked Vietnamese suspicions of China's motives.

Vietnamese-Chinese relations deteriorated significantly after Hanoi instituted a ban in March 1978 on private trade, a move that particularly affected the Sino-Vietnamese sector of the population. Following Vietnam's December 1978 invasion of Cambodia, China launched a retaliatory invasion of Vietnam's northern border region. Faced with severance of Chinese aid and strained international relations, Vietnam established even closer ties with the Soviet Union and its allies in the Comecon member states. Throughout the 1980s, Vietnam received nearly US$3 billion a year in economic and military aid from the Soviet Union and conducted most of its trade with the U.S.S.R. and Comecon countries. Soviet and Eastern bloc economic aid, however, ceased after the break-up of the Soviet Union.

Đổi mới

Vietnam did not begin to emerge from international isolation until it withdrew its troops from Cambodia in 1989. Within months of the 1991 Paris Agreements, Vietnam established diplomatic and economic relations with Association of South-East Asian Nations (ASEAN) member states and also with most countries of Western Europe and Asia's Far East. China re-established full diplomatic ties with Vietnam in 1991. The two nations concluded a land border demarcation agreement in 1999.

In the past decade, Vietnam has recognized the importance of growing global economic interdependence and has made concerted efforts to adjust its foreign relations to reflect the evolving international economic and political situation in Southeast Asia. The country has begun to integrate itself into the regional and global economy by joining international organizations. Vietnam has stepped up its efforts to attract foreign capital from the West and regularize relations with the world financial system. In the 1990s, following the lifting of the US veto on multilateral loans to the country, Vietnam became a member of the World Bank, the International Monetary Fund (IMF), and the Asian Development Bank. The country has expanded trade with its East Asian neighbors as well as with countries in Western Europe and North America. Of particular significance was Vietnam's acceptance into ASEAN in July 1995. Vietnam joined the Asia-Pacific Economic Cooperation forum (APEC) in November 1998 and also hosted the ASEAN summit the following month. In 2005, Vietnam attended the inaugural East Asia Summit. Vietnam became a member of the World Trade Organization in November 2006.

Current issues

While Vietnam has remained relatively conflict-free since its Cambodia days, tensions have arisen in the past between Vietnam and its neighbors, especially in the case of China since both nations assert claims to the Spratly Islands, an archipelago in a potentially oil-rich area of the South China Sea. Conflicting claims have produced over the years small scale armed altercations in the area. In 1988, more than 70 Vietnamese troops were killed during a confrontation with Chinese forces, when China occupied several islands under Vietnamese control in the Spratly Islands. China's assertion of control over the Spratly Islands and the entire South China Sea has elicited concern from Vietnam and its Southeast Asia neighbors. The territorial border between the two countries is being definitively mapped pursuant to a Land Border Agreement signed in December 1999, and an Agreement on Borders in the Gulf of Tonkin signed in December 2000. Vietnam and Russia declared a strategic partnership in March 2001 during the first visit ever to Hanoi of a Russian head of state, largely as an attempt to counterbalance China's growing profile in Southeast Asia.

Disputes – international: maritime boundary with Cambodia not defined; involved in a complex dispute over the Spratly Islands with the People's Republic of China (PRC), Malaysia, Philippines, and possibly Brunei; maritime boundary with Thailand resolved in August 1997; maritime boundary dispute with the PRC in the Gulf of Tonkin resolved in 2000; Paracel Islands occupied by the PRC; offshore islands and sections of boundary with Cambodia are in dispute; agreement on land border with the People's Republic of China was signed in December 1999.

Illicit drugs: minor producer of opium poppy with 21 km² cultivated in 1999, capable of producing 11 metric tons of opium; probably minor transit point for Southeast Asian heroin destined for the US and Europe; growing opium/heroin addiction; possible small-scale heroin production

Brunei

Brunei has an embassy in Hanoi, and Vietnam has an embassy in Bandar Seri Begawan.

Cambodia

Since the 1990s, relations between both nations have begun to improve. Both Vietnam and Cambodia are members of multilateral regional organizations such as ASEAN and the Mekong-Ganga Cooperation. Both nations have opened and developed cross-border trade and sought to relax visa regulations to that end. Both governments have set official targets of increasing bilateral trade by 27% to USD 2.3 billion by 2010 and to USD 6.5 billion by 2015. Vietnam exported USD 1.2 billion worth of goods to Cambodia in 2007. While Cambodia is only the 16th largest importer of Vietnamese goods, Vietnam is Cambodia's third-largest export market.

Laos

Although Vietnam's historical record of leadership in the revolution and its military power and proximity will not cease to exist, Laos struck out ahead of Vietnam with its New Economic Mechanism to introduce market mechanisms into its economy. In so doing, Laos has opened the door to rapprochement with Thailand and China at some expense to its special dependence on Vietnam. Laos might have reached the same point of normalization in following Vietnam's economic and diplomatic change, but by moving ahead resolutely and responding to Thai and Chinese gestures, Laos has broadened its range of donors, trading partners, and investors independent of Vietnam's attempts to accomplish the same goal. Thus, Vietnam remains in the shadows as a mentor and emergency ally, and the tutelage of Laos has shifted dramatically to development banks and international entrepreneurs.

Indonesia

Vietnam and Indonesia are both members of {ASEAN}, the Association of Southeast Asian Nations.

President Megawati Sukarnoputri of Indonesia visited Vietnam in June 2003. At this time the two countries signed a "Declaration on the Framework of Friendly and Comprehensive Cooperation Entering the 21st Century". In May 2005 President Susilo Bambang Yudhoyono of Indonesia visited Vietnam. In the December of the same year festivities were organized in the respective capital cities to celebrate the 50th anniversary of the establishment of diplomatic ties. Due to the ongoing South China Sea disputes, both Vietnam and Indonesia has supported a restraint in militarizing the issue. China claims the EEZ of the Natuna Island of Indonesia, while it also claims most of the South China Sea including the Vietnam-claimed Paracel and Spratly islands.

Malaysia

Vietnam has an embassy in Kuala Lumpur, and Malaysia has an embassy in Hanoi.

Myanmar

Vietnam has an embassy in Yangon, and Myanmar has an embassy in Hanoi.

Philippines

Ever since the end of the Cold War relations between the Philippines and Vietnam has warmed rapidly. Today the Philippines and Vietnam are economic allies and have a free trade deal with each other. Both nations are a part of Association of Southeast Asian Nations (ASEAN) and Asia-Pacific Economic Cooperation (APEC). The Philippines and Vietnam have conducted joint military exercises together in the South China Sea and are trying to find ways to turn the Spratly Islands from an area of conflict to an area of cooperation. Vietnam is also sometimes called the only communist military ally of the Philippines. The Philippines and Vietnam are also monitoring China's expansion into the South China Sea making sure that China is no threat to either Philippine or Vietnamese islands in the South China Sea. The Philippines also imports a large amount of writing material, clothes and other products from Vietnam. On May 2009, The Philippines has inked an agreement with Vietnam to cooperate in the fight against crimes and ensuring social order. On January 2010, the Philippine Stock Exchange (PSE) has signed a memorandum of understanding with the Vietnam bourse "for mutual collaboration and communication of information and experience" to facilitate the development and efficient operations of both securities markets. In 2012, Vietnam sent two military assets for a good will visit to the Philippines. Both Vietnam and the Philippines have the same stand on the South China Sea disputes, patronizing multilateral talks and international court rulings to solve the issue, tactics which China has avoided. In 2016, the Philippines strengthened its stand on the dispute through a court ruling in an international court not associated with UN and poised to create stronger relations with Vietnam for strategic defense and economic cooperation.

Thailand

Vietnam has an embassy in Bangkok, and Thailand has an embassy in Hanoi.

China

After both sides resumed trade links in 1991, growth in bilateral trade has increased from USD $32 million in 1991 to almost USD 7.2 billion by 2004. Both governments have set the target of increasing trade volume to USD 10 billion by 2010. Vietnam's exports to China include crude oil, coal, coffee and food, while China exports pharmaceuticals, machinery, petroleum, fertilizers and automobile parts to Vietnam. China has become Vietnam's second-largest trading partner and the largest source of imports. Both nations are working to establish an "economic corridor" from China's Yunnan to Vietnam's northern provinces and cities, and similar economic zones in the Gulf of Tonkin and connecting the Nanning of Guangxi province, Lang Son province, Hanoi, Haiphong and Quang Ninh province of Vietnam. Air and sea transport as well as railway have been opened between the two countries, so have the 7 pairs of national-level ports in the frontier provinces and regions of the two countries. Both sides have also launched joint ventures such as the Thai Nguyen Steel Complex, which produces hundreds of thousands of tones of steel products.

Japan

Following 23 October 1991 Final Act of the International Paris Conference on Cambodia among the Cambodian parties, Indonesia (as co-chair with France), and the five permanent members of the United Nations Security Council, Japan promptly established diplomatic relations and ended economic restrictions with Cambodia and Vietnam. In November 1992, Tokyo offered Vietnam US$370 million in aid. Japan also took a leading role in peacekeeping activities in Cambodia. Japan's Akashi Yasushi, UN undersecretary for disarmament, was head of the UN Transitional Authority in Cambodia, and Japan pledged US$3 million and even sent approximately 2,000 personnel, including members of the SDF, to participate directly in maintaining the peace. Despite the loss of a Japanese peacekeeper killed in an ambush, the force remained in Cambodia until the Cambodians were able to elect and install a government.

Japan is the single biggest country donor to Vietnam. It has pledged $US890 million in aid for the country this year, or 6.5 percent higher than the 2006 level of $US835.6 million. http://www.smh.com.au/news/travel/highspeed-rail-to-save-travel-time/2007/02/07/1170524142733.html

North Korea

Diplomatic relations between Vietnam and North Korea dated back to 1950, and students from North Vietnam began studying in North Korea as early as the 1960s. Relations later declined due to investment and trade disputes in the 1990s and 2000s.