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27 August 2024

Hanoi’s New Fears And Gains – Analysis

Collins Chong Yew Keat

Vietnam’s new leader To Lam is making China the destination for his first overseas visit, when he visited the country and met with Xi, signaling the option of China being the vital power that still remains on Vietnam’s policy calculations, especially in supply chain and economic dimension.

The fact that Lam chose China as his first overseas visit since his appointment reflects the fact that Vietnam attaches great importance to its relations with China, even with Washington’s greater courting of Hanoi in recent months in a tit for tat move after Xi and Putin both visited the country.

Biden’s visit to Hanoi last year also marked the escalation of the overtures and the race to ensure Vietnam remains a reliable future supporter of Washington’s quest to defend the rules-based order.

Vietnam needs greater expansion and access to the Chinese market, especially to its agricultural products and high-quality investments, while China is eyeing Vietnam for its geopolitical returns and in ensuring a trouble free neighbour in its southern flank. Vietnam’s new economic potential and its vast critical minerals including rare earths and the risks of Vietnam falling into Washington and the West’s orbit.

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