VIETNAM S FOREIGN POLICY UNDER DOI MOI

Reproduced from Vietnam's Foreign Policy under Doi Moi, edited by Le Hong Hiep and Anton Tsvetov (Singapore: ISEAS Yusof Ishak Institute, 2018). This version was obtained electronically direct from the publisher on condition that copyright is not infringed. No part of this publication may be reproduced without the prior permission of ISEAS Yusof Ishak Institute. E-book is available at <http://bookshop.iseas.edu.sg> VIETNAM S FOREIGN POLICY UNDER DOI MOI

The ISEAS Yusof Ishak Institute (formerly Institute of Southeast Asian Studies) is an autonomous organization established in 1968. It is a regional centre dedicated to the study of socio-political, security, and economic trends and developments in Southeast Asia and its wider geostrategic and economic environment. The Institute s research programmes are grouped under Regional Economic Studies (RES), Regional Strategic and Political Studies (RSPS), and Regional Social and Cultural Studies (RSCS). The Institute is also home to the ASEAN Studies Centre (ASC), the Nalanda-Sriwijaya Centre (NSC), and the Singapore APEC Study Centre. ISEAS Publishing, an established academic press, has issued more than 2,000 books and journals. It is the largest scholarly publisher of research about Southeast Asia from within the region. ISEAS Publishing works with many other academic and trade publishers and distributors to disseminate important research and analyses from and about Southeast Asia to the rest of the world.

VIETNAM S FOREIGN POLICY UNDER DOI MOI Edited by Le Hong Hiep & Anton Tsvetov

First published in Singapore in 2018 by ISEAS Publishing 30 Heng Mui Keng Terrace Singapore 119614 E-mail: publish@iseas.edu.sg Website: <http://bookshop.iseas.edu.sg> All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the ISEAS Yusof Ishak Institute. 2018 ISEAS Yusof Ishak Institute, Singapore The responsibility for facts and opinions in this publication rests exclusively with the authors and their interpretations do not necessarily reflect the views or the policy of the publisher or its supporters. ISEAS Library Cataloguing-in-Publication Data Vietnam s Foreign Policy under Doi Moi / edited by Le Hong Hiep and Anton Tsvetov. 1. Vietnam Foreign relations 20th century. 2. Vietnam Foreign relations 21st century. 3. ASEAN Membership. 4. Vietnam Foreign relations South China Sea. 5. South China Sea Foreign relations Vietnam. 6. Vietnam Foreign economic relations European Union countries. 7. European Union countries Foreign economic relations Vietnam. I. Le, Hong Hiep, editor. II. Tsvetov, Anton, editor. DS556.57 V661 January 2018 ISBN 978-981-4818-14-8 (soft cover) ISBN 978-981-4818-15-5 (E-book PDF) Typeset by International Typesetters Pte Ltd Printed in Singapore by Markono Print Media Pte Ltd

Contents List of Tables List of Figures List of Abbreviations Acknowledgements About the Contributors vii viii ix xii xiii PART 1: Analytical and Historical Framework 1. Introduction: The Making of Vietnam s Foreign Policy 3 under Doi Moi Le Hong Hiep 2. The Evolution of Vietnamese Diplomacy, 1986 2016 23 Carlyle A. Thayer PART II: BILATERAL RELATIONSHIPS 3. The Evolution of Strategic Trust in Vietnam U.S. 47 Relations Phuong Nguyen 4. The 2014 Oil Rig Crisis and its Implications for 72 Vietnam China Relations Nguyen Thanh Trung and Truong-Minh Vu

vi Contents 5. Vietnam Japan Relations: Moving beyond Economic 96 Cooperation? Thuy T. Do and Julia Luong Dinh 6. The Reinvigoration of India Vietnam Partnership under 117 Prime Minister Modi Rajeev Ranjan Chaturvedy 7. Vietnam Russia Relations: Glorious Past, Uncertain Future 141 Anton Tsvetov 8. Vietnam s Foreign Policy Towards its Smaller Neighbours 166 Vannarith Chheang 9. Vietnam s Decision to Join ASEAN: The South China Sea 186 Disputes Connection Nguyen Vu Tung and Dang Cam Tu PART III: MAJOR FOREIGN POLICY ISSUES 10. Vietnam s South China Sea Strategy since 2007 211 Ha Anh Tuan 11. Vietnam s International Economic Integration under 235 Doi Moi To Minh Thu 12. Norm Diffusion through Trade: The Case of the 260 EU Vietnam Free Trade Agreement Hoang Hai Ha Index 281

List of Tables 4.1 Exchange of High-Level Visits between Vietnam and the 83 United States, Japan, Indiaand Russia, May 2014 May 2017 4.2 Major Additions to Vietnam s Naval Capabilities, mid-2014 87 to mid-2017 4.3 Vietnam Coast Guard s Major Acquisitions, mid-2014 to 88 mid-2017 7.1 Bilateral Official Visits by Heads of State/Party Leaders of 150 Vietnam and Russia, 2001 11 10.1 Major Engagement Mechanisms between Vietnam 220 and China 11.1 Major Developments in the CPV s Thinking on 243 International Economic Integration, 1986 2016 11.2 Vietnam s FTAs and Their Status, September 2017 245 11.3 Trade and Investment in Vietnam, 1986 2015 247 11.4 Vietnam s Exports and Imports Distribution by 248 Country/Region, 1986 2015 11.5 Regional Comparison of Selected Trade Indicators 249 vii

List of figures 5.1 Exchange of High-Level Visits between Vietnam and the 109 United States, Japan, Indiaand Russia, May 2014 May 2017 7.1 Bilateral Official Visits by Heads of State/Party Leaders of 146 Vietnam and Russia, 2001 11 7.2 Major Engagement Mechanisms between Vietnam 151 and China 7.3 Major Developments in the CPV s Thinking on 154 International Economic Integration, 1986 2016 11.1 Vietnam s FTAs and Their Status, September 2017 246 12.1 Trade and Investment in Vietnam, 1986 2015 264 viii

List of abbreviations ADB ADMM AEC AFTA AIIB AMF AMM ARF APEC ASEAN ASEM ASW BIMSTEC BJP BRI BTA CNRP CPP CPV CSIS Asian Development Bank ASEAN Defence Ministers Meeting ASEAN Economic Community ASEAN Free Trade Agreement Asian Infrastructure Investment Bank ASEAN Maritime Forum ASEAN Ministerial Meeting ASEAN Regional Forum Asia-Pacific Economic Cooperation Association of Southeast Asian Nations Asia Europe Meeting anti-submarine warfare Bay of Bengal Initiative for Multi-Sectoral Scientific, Technological and Economic Cooperation Bharatiya Janata Party Belt and Road Initiative Bilateral Trade Agreement Cambodia National Rescue Party Cambodian People s Party Communist Party of Vietnam Centre for Strategic and International Studies ix

x List of Abbreviations DOC DRV DTTI EAEU EAS EEZ EU EUVFTA FDI FON FTA GDP GSO GSP IFI ILO IMF IORA JICA JICPAC KPRF LEMOA LMC LPRP MFN MGC MOFA MOU NEA NPE Declaration on the Conduct of Parties in the South China Sea Democratic Republic of Vietnam Defence Technology and Trade Initiative Eurasian Economic Union East Asia Summit exclusive economic zone European Union European Union Vietnam Free Trade Agreement foreign direct investment freedom of navigation free trade agreement gross domestic product General Statistics Office Generalized System of Preferences international finanical institutions International Labour Organization International Monetary Fund Indian Ocean Rim Association Japan International Cooperation Agency Joint Intelligence Centre Pacific Communist Party of the Russian Federation Logistics Exchange Memorandum of Agreement Lancang Mekong Cooperation Lao People s Revolutionary Party Most Favoured Nation Mekong-Ganga Cooperation Ministry of Foreign Affairs Memorandum of Understanding Naval Engagement Activity Normative Power Europe

List of Abbreviations xi OCED ODA ONGC Videsh PNTR POW/MIA PRC RCEP SIPRI SLOC SOE SOM SPS TBT TPP TRA TSIA UN UNCLOS UNCTAD UNSC USSR VCG VPA/FLEGT WB WTO Organisation for Economic Co-operation and Development Official Development Assistance Oil and Natural Gas Corporation Videsh Permanent Normal Trade Relations Prisoner of War/Missing in Action People s Republic of China Regional Comprehensive Economic Partnership Stockholm International Peace Research Institute sea lines of communication state-owned enterprise Senior Official Meeting Sanitary and Phytosanitary Technical Barriers to Trade Trans-Pacific Partnership Trade Related Assistance Trade Sustainability Impact Assessments United Nations United Nations Convention on the Law of the Sea United Nations Conference on Trade and Development United Nations Security Council Union of Soviet Socialist Republics Vietnam Coast Guard Voluntary Partnership Agreement on Forest Law Enforcement, Governance and Trade World Bank World Trade Organization

acknowledgements Six out of twelve chapters in this edited volume (Chapters 3, 4, 6, 8, 11 and 12) are based on papers presented at the Vietnam Forum 2016 on Vietnam s Thirty Years of Doi Moi and Beyond organized by ISEAS Yusof Ishak Institute on 7 8 April 2016. The conference was sponsored by the Konrad-Adenauer-Stiftung (KAS), which also funded the publication of this volume. The authors of the above chapters would like to thank the participants and attendees at the conference for their comments and suggestions which contributed to the improvement of their final papers. The editing of the volume was initially conducted by Le Hong Hiep. He would like to thank Mr Tan Chin Tiong, former Director of ISEAS Yusof Ishak Institute, and Mr Daljit Singh, Senior Fellow and Coordinator of ISEAS Regional Strategic and Political Studies Programme, for their encouragement and guidance throughout the whole process. Anton Tsvetov later joined Le Hong Hiep as a coeditor and helped with the initial review and editing of five chapters. Hiep would like to thank Tsvetov for his timely help, without which this book project may have been delayed. This edited volume is a joint effort of all the contributing authors. The editors are thankful to them for their cooperation and patience. Some of the chapters are based on the respective authors previous research. Specifically, Carlyle A. Thayer s Chapter 2 is based on the paper titled Vietnamese Diplomacy, 1975 2015: From Member of the Socialist Camp to Proactive International Integration that he presented at the International Conference on Vietnam: 40 Years of Reunification, Development and Integration (1975 2015) organized by Thu Dau Mot xii

Acknowledgements xiii University on 25 April 2015; Chapter 5 is based in part on a working paper written by Thuy T. Do during her visiting research fellowship at the Japan Institute of International Affairs in 2014; and Hoang Hai Ha s Chapter 12 is based on her PhD study titled Analysing Normative Power Europe through Trade and Development Cooperation Policies towards Vietnam that she undertook at Sant Anna School of Advanced Studies, Italy, and Ghent University, Belgium. The views and opinions expressed in all chapters of this book are those of the respective authors and do not necessarily reflect the views of their institutions. Finally, the editors and contributing authors are grateful to two anonymous reviewers for their valuable comments and suggestions that have helped to improve the manuscript, and to Anh Pham, Dickson Yeo, and Tran Chi Trung for their comments and ideas about the book cover design. They would also like to thank the editors at ISEAS Publishing for their generous and efficient assistance during the production of this book.

about the contributors Rajeev Ranjan Chaturvedy is a researcher at the Institute of South Asian Studies (ISAS), National University of Singapore. Prior to joining ISAS, he was heading Foreign Policy Division at the Federation of Indian Chambers of Commerce and Industry. He was a Global Emerging Voices Fellow in 2013; Young Strategists Forum Fellow in 2012; a 2009 Professional Development Award recipient at the Canadian International Development Research Centre in Ottawa. Before going to Ottawa, he worked with the Indian Council for Research on International Economic Relations and the Indian Pugwash Society. Rajeev was also part of the Nuclear Cluster at the Institute for Defence Studies and Analyses. Rajeev has authored a number of academic and policy papers and frequently comments on Indian foreign policy issues in the media. Vannarith Chheang is Vice-Chairman of the Cambodian Institute for Strategic Studies and a Board Member and Senior Fellow at the Cambodian Institute for Cooperation and Peace where he previously served as the Executive Director from 2009 to 2013. He was a Lecturer of Asia Pacific Studies at the University of Leeds from 2013 to 2016 and was also Visiting Fellow at the ISEAS Yusof Ishak Institute (Singapore), China s Institute for International Studies (Beijing, China), Nippon Foundation s Asian Public Intellectuals (Tokyo, Japan), the Institute for Developing Economies (Chiba, Japan), and East-West Center (Washington D.C., USA). Chheang also served as a technical adviser to the Cambodian National Assembly in 2011 and assistant to xiv

About the Contributors xv Cambodia s Defence Minister from 2011 to 2012. He was honoured as a Young Global Leader by the World Economic Forum in 2013. Julia Luong Dinh (aka Dinh Thi Hien Luong) is a Senior Research Fellow and a Lecturer at the Institute of Foreign Policy and Strategic Studies, the Diplomatic Academy of Vietnam. Dinh earned her doctoral degree from the University of Sydney in 2016. She was awarded the Ushiba Memorial Fellowship for ASEAN Researchers under the auspices of the Japan Association for Promotion of International Cooperation to conduct her research project on Japan s role in the building of East Asian Community in Chiba (Japan) between 2007 and 2008. Her research background and interests include Chinese foreign policy, power politics, regionalism, international relations theory and practice in East Asia. Thuy T. Do is a Senior Lecturer at the Department of International Politics and Diplomacy, the Diplomatic Academy of Vietnam. She obtained her doctoral degree from the Department of International Relations, Australian National University in 2016. She has been awarded visiting research fellowships at the S. Rajaratnam School of International Studies (2008), East-West Center (2010), and the Japan Institute of International Affairs (2014). Her research and teaching interests include international relations theory, East Asian international relations, Asia-Pacific security, and Vietnam s relations with the major powers. She has published widely in Vietnam and abroad on these topics. Hoang Hai Ha is a Lecturer at the Faculty of History, Hanoi National University of Education. She earned her bachelor s degree from Hanoi National University of Education in 2006 and Master s degree in European Studies from Maastricht University in 2008. She started a joint doctoral programme in International and European Politics sponsored by Sant Anna School of Advanced Studies (Italy) and Ghent University (Belgium) in 2012 and received her doctoral degree (cum laude) in 2015. Her current research focuses on international relations and foreign policy of Vietnam. She is the author or co-author of some articles published on International Relations, Asia Europe Journal, and Contemporary Politics.

xvi About the Contributors Le Hong Hiep is Fellow at the ISEAS Yusof Ishak Institute, Singapore, and Lecturer at the Faculty of International Relations, Ho Chi Minh City University of Social Sciences and Humanities. Hiep earned his PhD in Political and International Studies from the University of New South Wales, funded by a Prime Minister s Australia Asia Award. Before becoming an academic, he worked for the Ministry of Foreign Affairs of Vietnam from 2004 to 2006. Hiep s scholarly articles and analyses have been published, among others, in Contemporary Southeast Asia, Southeast Asian Affairs, Asian Politics & Policy, Korean Journal of Defence Analysis, ASPI Strategic Insights, ISEAS Perspective, American Review, Project Syndicate, The Straits Times, The Diplomat, and the East Asia Forum. His book Living Next to the Giant: The Political Economy of Vietnam s Relations with China under Doi Moi was released by ISEAS Publishing in December 2016. Phuong Nguyen is an Associate Fellow with the Chair for Southeast Asia Studies at Centre for Strategic and International Studies (CSIS), Washington D.C.. In this role, she leads the Chair s research team, writes on Southeast Asia, U.S. foreign policy toward ASEAN countries, and China s peripheral diplomacy. Nguyen is a co-author of Building a More Robust U.S. Philippines Alliance (August 2015), Southeast Asia s Geopolitical Centrality and the U.S. Japan Alliance (June 2015), Thailand in Crisis: Scenarios and Policy Responses (July 2014), and A New Era in U.S. Vietnam Relations: Deepening Ties Two Decades after Normalization (June 2014). She is a co-editor of Examining the South China Sea Disputes (November 2015) and Perspectives on the South China Sea: Diplomatic, Legal, and Security Dimensions of the Dispute (September 2014). Her work has also been published in East Asia Forum, Yale Global, World Politics Review, Nikkei Asian Review, The Straits Times, Bangkok Post, and Business Insider. Nguyen holds an M.A. in Asian Studies from the School of International Service at American University in Washington, D.C. She speaks fluent French and Vietnamese. Carlyle A. Thayer is Emeritus Professor, The University of New South Wales at the Australian Defence Force Academy, Canberra. Most of his academic career has been spent teaching in a military environment: The Royal Military College-Duntroon (1979 85); Australian Defence Force Academy (1985 2010); Asia-Pacific Center for Security Studies,

About the Contributors xvii Honolulu (1999 2002); Centre for Defence and Strategic Studies, Australian Defence College (2002 4); and the Australian Command and Staff College (2006 7 and 2010). In 2005 he was appointed C. V. Starr Distinguished Visiting Professor at the School of Advanced International Studies, Johns Hopkins University in Washington, D.C. In 2008 he was appointed the Inaugural Frances M. and Stephen H. Fuller Distinguished Visiting Professor at the Center for Southeast Asian Studies, Ohio University, Athens, Ohio. Professor Thayer was educated at Brown (1967), and received an M.A. in Southeast Asian Studies from Yale (1971) and a PhD in International Relations from the Australian National University (1977). He is the author of over 500 academic publications, including: The Vietnam People s Army Under Doi (1994); Beyond Indochina, Adelphi Paper 297 (1995); Vietnam People s Army: Development and Modernization (2009); and Southeast Asia: Patterns of Security Cooperation (2010). He is currently Director of Thayer Consultancy that provides political analysis of current regional security issues and other research support to selected clients. To Minh Thu is currently a researcher at the Diplomatic Academy of Vietnam, where she studies economic and international integration issues. From 2013 to 2016, she was a Research Fellow at the Center for Policy and Economy, the Mitsubishi Research Institute in Tokyo. Thu earned her Master s degree in International Economics from Massey University and her PhD in International Public Policy and Economics from Osaka University. Thu s research interests include regional and Vietnam s economic integration, ASEAN Economic Community building, regional economic cooperation, and assessing economic integration using computable general equilibrium (CGE) models. Her recent projects include an assessment of Vietnam s deeper trade liberalization (using CGE model), and the enhancement of the textile and garment industries in Vietnam in the context of TPP and Vietnam EU FTA. Nguyen Thanh Trung earned his PhD from the Hong Kong Baptist University. He is currently serving as the Head of the Faculty of International Relations, University of Social Sciences and Humanities in Ho Chi Minh City. His research interests focus on comparative politics and international relations, with a particular emphasis

xviii About the Contributors on international security, China, and Southeast Asia. He has contributed commentaries and analyses to the IAPS Dialogue, The Asia Maritime Transparency Initiative, The Diplomat, and The International Policy Digest. Anton Tsvetov is an expert at the Foreign Policy and Security Division of the Center for Strategic Research (CSR), a Moscow-based think-tank. He holds a BA in Area Studies and an MA in Russian Foreign Policy and Diplomacy. His research interests include international relations and great power politics in Southeast Asia, Russia s policies in Asia, and Vietnamese politics and political economy. He publishes on these topics in academic journals, analytical outlets and the media. His most recent publication is After Crimea: Southeast Asia in Russia s Foreign Policy Narrative, Contemporary Southeast Asia 38, no. 1 (2016). Dang Cam Tu joined the Diplomatic Academy of Vietnam in 2000 and is currently serving as Deputy Director General of the Institute for Foreign Policy and Strategic Studies (IFPSS) at the Academy. Tu earned her PhD in Politics and International Relations from the University of New South Wales in 2011. She is a member of several major research and education projects at both institutional and national levels. She is also a member of major research and think-tank networks in the Asia Pacific. Her main areas of research and publications include international relations in Southeast Asia and the Asia Pacific, ASEAN, and Vietnam s foreign policy and relations with important partners in the region. Ha Anh Tuan is a Senior Research Fellow at Bien Dong Maritime Institute, the Diplomatic Academy of Vietnam. Tuan earned his PhD in Politics and International Relations from the University of New South Wales in 2014. He has authored or co-authored a number of book chapters and journal articles on the South China Sea disputes, including Vietnam s Regional Security Challenges (2016), Navigating through Troubled Waters: A Vietnamese Perspective on Sino Vietnamese Relations in the South China Sea (2016), and ASEAN and the Disputes in the South China Sea (2012). Tuan is also a frequent commentator in Vietnam s news media.

About the Contributors xix Nguyen Vu Tung is President of the Diplomatic Academy of Vietnam (DAV). From July 2010 to January 2014, he was Deputy Chief of Mission at the Vietnam Embassy in the United States. His previous positions include Director General of the DAV Institute for Strategic Studies and Foreign Policy and Institute for East Sea Studies. Tung earned his MA in Laws and Diplomacy (MALD) from the Fletcher School of Law and Diplomacy in 1998 and his PhD in Political Science from Columbia University in 2003. His main areas of teaching, research, and publications include international relations theories, international relations in Southeast Asia and the Asia Pacific, Vietnamese foreign policy and relations with the United States, China, and ASEAN. Truong-Minh Vu is Director of the Center for International Studies (SCIS) at the University of Social Sciences and Humanities in Ho Chi Minh City. His research interests include international and strategic relations of Southeast Asia. His scholarly articles and analyses have been published in The National Interest, The Asan Forum, Revista Brasileira de Política Internacional, Global Asia, East Asia Policy, ASIEN, The German Journal on Contemporary Asia, The Asia Maritime Transparency Initiative and RSIS Commentaries. He is co-editor of the book, Power Politics in Asia s Contested Waters: Territorial Disputes in the South China Sea (2016).