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Vietnam on the Road to Global Integration: Forging Strategic Partnerships Through International Security Cooperation
Carlyle A. Thayer

Oral Presentation to the Opening Plenary Session Fourth International Vietnam Studies Conference Vietnam Academy of Social Sciences and Vietnam National University Hanoi, November 26-30, 2012

2 VIETNAM ON THE ROAD TO GLOBAL INTEGRATION: FORGING STRATEGIC PARTNERSHIPS THROUGH INTERNATIONAL SECURITY COOPERATION Carlyle A. Thayer Introduction I would like to acknowledge and thank the Organizing Committee of the Vietnam Academy of Social Sciences for inviting me to attend the Fourth International Conference on Vietnamese Studies. In particular I would also like to thank Professor Pham Quang Minh for organizing the international relations stream at this conference. Professor Minh was instrumental in organizing a similar stream at the Third International Conference of Vietnamese Studies held two years ago. This is a significant development highlighting the importance Vietnamese and foreign scholars place on studying Vietnams road to global integration. My paper today is a very preliminary report on Vietnam and its strategic partners. My interest was aroused at the Third International Conference on Vietnamese Studies when many scholars mentioned Vietnams bilateral strategic relations with the countries of their concern. I knew at that time that Vietnam and Australia were discussing a strategic partnership and I wanted to know precisely what the term meant. Background In 1991 the Seventh National Congress of the Vietnam Communist Party (VCP) called for Vietnam to diversify and multi-lateralize economic relations with all countries and economic organizations... and become the friend of all countries in the world community. Since 1991 Vietnam has achieved notable success in achieving these goals. It has developed eight strategic partnerships: the Russian Federation (2001), Japan (2006), India (2007) Peoples Republic of China (2008), Republic of Korea (2009), Spain (Forward Looking Strategic Partnership-2009), United Kingdom (2010) and Germany (2011).

3 In reviewing the eight official statements on strategic partnerships it is obvious that each bilateral relationship has its own characteristics. There does not appear to be a single model or template that fits all eight strategic partnerships. Take for example the following indicators: the length of diplomatic relations, the presence of a large Vietnamese expatriate community, economic ties, and major power status. The length of diplomatic relations varies among Vietnams strategic partners from China and Russia in 1950 to India, Japan, United Kingdom, Germany and Spain (1972-77) to South Korea in 1992. Russia and Germany are home to a large expatriate Vietnamese community but the other strategic partners are not. All of Vietnams strategic partners are members of the Group of 20 except Spain. The extent of economic relations as measured by two-way trade, direct investment and development assistance ranges widely. China, South Korea and Japan are among Vietnams largest trading partners (with two-way trade of $35.7 billion, $18 billion and $16 billion respectively in 2011), while two-way trade with other strategic partners is more modest (ranging from $1.4 to 3.9 billion). With the exception of Spain, Vietnam and its other strategic partners have committed themselves to increasing two-way trade in the next five and ten years. Vietnam has developed strategic partnerships with three of the major powers as determined by their status as permanent members of the United Nations Security Council - China, Russia and the United Kingdom. Vietnam is currently negotiating strategic partnerships with France and the United States. Vietnam has developed strategic partnerships with most of the major powers in East and South Asia, such as China, Japan, South Korea and India but not Australia, and Europe, such as Germany and the UK but not France.

4 What is a Strategic Partnership? A formal strategic partnership is first and foremost a political statement that Vietnam has established a comprehensive relationship with its partner. This can be measured in the large number of areas for cooperation specified in strategic partnership agreements. It is important to note that while there is a considerable area of overlap in areas of cooperation mentioned in the strategic partnership agreements there are also specific areas of cooperation unique to each country. The following examples illustrate this point: The 2001 Vietnam-Russia strategic partnership agreement contains seven areas of cooperation: (1) oil and gas, (2) hydro power and nuclear energy, (3) trade and investment, (4) science and technology (chemistry, mechanical engineering, metallurgy electronics, agriculture, communications), (5) military equipment and technology, (6) education and training, and (7) culture and tourism. The Vietnam-Japan Agenda Toward a Strategic Partnership of 2007 includes forty-four points divided into seven substantive areas of cooperation: (1) exchanges, cooperation in policy dialogue, security and defence; (2) comprehensive economic partnership; (3) improvement of the legal system and administrative reforms; (4) science and technology; (5) climate change, environment, natural resources and technology; (6) mutual understanding between the peoples of the two countries; and (7) cooperation in the international arena. The 2007 India-Vietnam Joint Declaration on Strategic Partnership contains thirty-three points and maps out cooperation in five major areas: political, defence and security cooperation; closer economic cooperation and commercial engagement; science and technology cooperation, cultural and technical cooperation and multilateral and regional cooperation. The Vietnam-South Korea strategic cooperative partnership includes the following areas for cooperation: politics and security, judicial and consular relations, economics,

5 trade, investment, development cooperation, science and technology, environment and culture and education. The Vietnam-United Kingdom Joint Declaration on strategic partnership identified seven priority area for cooperation: political-diplomatic, regional and global issues, trade and investment, sustainable socio-economic development, education, training, science and technology, security and defence, and people-to-people exchange. In the cases of the Peoples Republic of China and the Russian Federation, their strategic partnerships with Vietnam were raised to Strategic Cooperative Partnership and Comprehensive Strategic Partnership in 2009 and 2012, respectively. In addition to mapping out areas of cooperation, Vietnam and its strategic partners have established high-level mechanisms to oversee the development of their bilateral relations: Russia - Inter-governmental Committee for Economic, Commercial, Scientific and Technical Co-operation; Japan - ministerial-level Joint Cooperation Committee; India - Joint Committee for Economic, Cultural, Scientific and Technological Cooperation; China - ministerial-level Joint Steering Committee; United Kingdom - Joint Economic Trade Committee (JETCO); and Germany - strategic management group. Case Study: Vietnam and the Russian Federation: From Strategic Partnership to Comprehensive Strategic Partnership On July 27 this year, Vietnamese President Truong Tan Sang met with his Russian counterpart President Vladimir Putin in Russia. The two presidents issued a joint statement raising their relations to a comprehensive strategic partnership. This development reflects the growth of bilateral relations especially after the recovery of the Russian economy. It should also be noted that President Putin has been proactive in pushing forward Russia's return to Asia, especially through the Asia Pacific Economic Cooperation forum or APEC. A comprehensive strategic partnership with Vietnam serves this objective.

6 How do Vietnam and Russia benefit from this new relationship? Vietnam and Russia formed Vietsovpetro, an oil and gas joint venture, in 1981. The company has been active on Vietnam's continental shelf and more recently in Russia as well. This has been Russia's most profitable enterprise and the joint venture has been extended to 2030. Further, Vietnam and Russia agreed to facilitate the operations of other joint ventures to expand oil and gas exploration and exploitation activities to third countries. Russia also agreed to give Vietnam a soft loan of $10.5 billion to build its first nuclear power plant. Trade and investment are both growing but the overall figures are modest. Bilateral trade reached $2 billion in 2011, although hopes are that this will grow to $5 billion in 2015 and $10 billion in 2020. Russia ranks the 23rd on the table of countries and territories investing in Vietnam. As for international relations, Vietnam prefers a multi-polar world as it seeks to develop relations with all the major powers. Russia seeks to reestablish itself as a major player in the Asia Pacific. As for the East Sea issue, for example, the joint statement issued by the two presidents reiterated that territorial disputes should be resolved by peaceful means without the use of force or the threat to use force based on international law including the UN Convention on the Law of the Sea. Both also agreed to include regional security on the agenda of the East Asia Summit. In sum, the Vietnam-Russia comprehensive strategic partnership is overwhelmingly focused on bilateral relations for mutual benefit. Their comprehensive strategic partnership serves the interests of both. International Security Cooperation The sub-title of this paper is Forging Strategic Partnerships Through International Security Cooperation. International defence and security cooperation was one of the major objectives set by the Vietnam Communist Partys Eleventh National Congress in 2011. Vietnams strategic partnerships outline a variety of elements composing international defence and security cooperation including high-level exchanges, regular strategic

7 defence dialogues, professional military education and training exchanges, naval port visits, cooperation between national defence industries including co-production, and sales of military equipment and technology. Since the eleventh national congress what have been the major developments in international defence cooperation between Vietnam and its strategic partners? Defence cooperation has played a major role in Vietnams strategic partnership with Russia since 2001. Russia provides Vietnam military equipment and weapons for Vietnams self-defence. Russia is Vietnams main supplier of military equipment and Vietnam is also a major market for Russian arms sales. Since 2011 bilateral defence cooperation was overwhelmingly focused on the delivery of major military platforms already contracted (Su-30 aircraft and Kilo-class submarines), and the purchase/coproduction of weapons systems to go with these platforms (air-to-air and anti-ship cruise missiles). In addition, Vietnam contracted Russia to train crews and build service facilities for its submarines. In July 2012, in a major development, Vietnam and the Russian Federation raised their strategic partnership to a comprehensive strategic partnership. Vietnam and Japan signed a Memorandum of Understanding (MOU) on defence cooperation in October 2011 mainly focused on strategic dialogue, high-level visits, defence exchanges between the Vietnam Peoples Army and the Japan Self-Defense Force, and cooperation in Humanitarian Assistance/Disaster Relief. Vietnam entered into discussions with India on the procurement of Offshore Patrol Vessels and Fast Attack Craft and naval personnel training, including submariners. The two sides initiated discussions about the sale of anti-ship and surface-to-surface missiles. At the 6th bilateral Defence Strategy Dialogue the two sides agreed to continue to boost tri-service cooperation and to continue to exchange delegations and information, cooperate in military training and information technology.

8 Territorial disputes in the East Sea between China and Vietnam appear to have been compartmentalized from their broader bilateral relationship, including defence relations. China and Vietnam continued to exchange high-level defence delegations and hold strategic dialogues. Joint patrols in the Gulf of Tonkin were expanded to include search and rescue and anti-piracy activities. Vietnamese naval ships also made their second goodwill port call to China. Vietnam and South Korea explored cooperation between their national defence industries, including shipbuilding. Vietnam and South Korea held their 1 st Strategic Dialogue on Diplomacy, Security and National Defence in Hanoi in April 2011 and their 1st National Defence Strategy Dialogue in Hanoi in March 2012. Spains economic crisis apparently led to a hiatus in bilateral defence cooperation in 2011 and 2012. Vietnam and the UK signed a MOU on defence cooperation in November 2011 covering the exchange of high-level delegations, defence industry cooperation, and professional military education and training. A Joint Working Group was set up under the MOU to conduct research on defence strategy and military technique. Future defence cooperation will focus on military training, including for peace support operations, and defence sales. In October 2011, Germany and Vietnam agreed to raise bilateral relations to that of strategic partners. Future defence cooperation activities will include: exchange of high-level delegations, professional military education and training, defence industry, and new demining technologies. Conclusion This paper presented a preliminary analysis of Vietnams efforts to forge strategic partnerships with states that it considers major actors regionally and globally. A review of the eight states that Vietnam has designated strategic partners includes three of the

9 five permanent members of the United Nations Security Council (Russian Federation, China and the United Kingdom) and major powers in East Asia (Japan, South Korea), South Asia (India) and Europe (Spain and Germany). The term strategic partner is applied to states that have developed comprehensive bilateral relations with Vietnam. The terms strategic partnership and strategic cooperative partnership are highly nuanced. The term strategic partner above all is a political term that designates states that Vietnam considers particularly important to the attainment of its goal of global integration. In other words, strategic partners represent a new hierarchy in Vietnams external relations. Within the group of eight states considered in this analysis, Vietnam has identified the Russian Federation, China and South Korea as particularly important by designating them as comprehensive strategic partner, in the case of Russia, and strategic cooperative partner, in the cases of China and South Korea. It is likely that in future Vietnam will reach more strategic partnerships with such countries as France, Italy and perhaps even the United States.