Vietnam on the Road to Global Integration: Forging Strategic Partnerships Through International Security Cooperation

Carlyle A. Thayer

Summary of Keynote Paper to the Plenary Session Fourth International Vietnam Studies Conference Vietnam Academy of Social Sciences and Vietnam National University Hanoi, November 26-30, 2012

Vietnam on the Road to Global Integration: Forging Strategic Partnerships Through International Security Cooperation
Carlyle A. Thayer1

Introduction
In 1991 the Seventh National Congress of the Vietnam Communist Party (VCP) called for Vietnam to diversify and multilateralise economic relations with all countries and economic organizations... and become the friend of all countries in the world community, and struggle for peace, independence and development. In the more than two decades since 1991 Vietnam has achieved notable success in achieving these goals. Most foreign commentary has focused on Vietnams economic integration with the global economy and the development of Vietnams bilateral political relations with many countries. Little attention has been focused on the expansion of Vietnams international defence and security cooperation, a goal set in 2011 at the Eleventh National Party National Congress. This paper focuses on the new hierarchy in Vietnams foreign relations embodied by the term strategic partnership. This paper examines Vietnams relations with eight major states with a focus on bilateral international security cooperation: the Russian Federation (2001), Japan (2006), India (2007) Peoples Republic of China (2008), Republic of Korea (2009), Spain (2009), United Kingdom (2010) and Germany (2011). The paper concludes by considering future strategic partnerships.

Part I. The New Hierarchy in Vietnams Foreign Relations

Russian Federation
From Strategic Partnership to Comprehensive Strategic Partnership Vietnams first strategic partnership was with the Russian Federation. In March 2001, Moscow and Hanoi established their strategic partnership in on the occasion of Vladimir Putins visit to Vietnam. This agreement set out broad-ranging cooperation in eight major areas: political-diplomatic, military equipment and technology, oil and gas cooperation, energy cooperation for hydro and nuclear power, trade and investment, science and technology, education and training, and culture and tourism. In July 2012, Vietnam and Russia raised their strategic partnership to a comprehensive strategic partnership on the occasion of a visit by President Truong Tan Sang who met with his Russian counterpart President Vladimir Putin. Trade and investment are both growing but the overall figures are modest. Bilateral trade reached US $2 billion in 2011. Both sides expect that two-way trade will grow to $5 billion in 2015 and $10 billion in 2020. Negotiations are underway for a free trade
1

Emeritus Professor, The University of New South Wales at the Australian Defence Force Academy, Canberra. Email: c.thayer@adfa.edu.au.

3 agreement in goods, services and investment with the Russia, Belarus and Kazakhstan Customs Union. Security Cooperation Russian arms sales to Vietnam are perhaps the largest and most significant component of the strategic partnership and are widely known. The Russian Federation is Vietnams largest provider of military equipment and technology. This assistance assists Vietnam modernize its armed forces and enhances their capacity to defend Vietnams sovereignty.

Japan
Strategic Partnership On October 19, 2006, Prime Ministers Shinzo Abe and Nguyen Tan Dung issued a Joint Statement Toward a Strategic Partnership for Peace and Prosperity in Asia. This document called for frequent high-level visits and exchanges of views and the establishment of a ministerial-level Joint Cooperation Committee. In November 2007, President Nguyen Minh Triet became the first Vietnamese president to make an official visit to Japan. Triet held discussions with Prime Minister Yasuo Fukuda. They issued a Joint Statement that included a forty-four point Agenda Toward a Strategic Partnership seven substantive areas: exchanges, cooperation in policy dialogue, security and defence; comprehensive economic partnership; improvement of the legal system and administrative reforms; science and technology; climate change, environment, natural resources and technology; mutual understanding between the peoples of the two countries; and cooperation in the international arena. Point 4 of the Agenda stated addressed defence cooperation including exchanges of military delegations, high-level defence officials visits, and ship visits by the Japan Maritime Self-Defense Force. 2009 Japan was Vietnams second largest trade partner after China and second largest importer after the United States. In 2010, two-way trade was valued at US $16 billion. Japan is the largest contributor of development assistance to Vietnam and the third largest investor in Vietnam. Security Cooperation Bilateral defence cooperation includes high-level visits, Diplomatic and Defence Dialogue, Strategic Partnership Dialogue and naval port visits. The two defence ministers met in Tokyo in October 2011 and signed a Memorandum of Understanding (MOU) covering regular defence talks at deputy minister level, reciprocal ministerial visits, exchanges between the Japan Self Defence force and the Vietnam Peoples Army, and cooperation in Humanitarian Assistance and Disaster Relief.

India
Strategic Partnership

4 India and Vietnam established full diplomatic relations on January 7, 1972. A major step up in bilateral relations took place in July 2007 when India and Vietnam adopted a 33point Joint Declaration on Strategic Partnership. The Joint Declaration mapped 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. Two-way trade between India and Vietnam reached US $3.9 billion in 2011. India has invested US $400 million in Vietnams oil and gas sector. President Truong Tan San visited India in October 2011. The two presidents issued a Joint Statement that noted there still remains considerable potential for cooperation and agreed to strongly enhance the comprehensive strategic partnership between the two countries Security Cooperation The November 2007 Joint Declaration on Strategic Partnership set out six areas for political, defence and security cooperation: (1) Strategic Dialogue at vice ministerial; (2) cooperation in defence supplies, joint projects, training cooperation and intelligence exchanges; (3) exchange visits between their defence and security establishments; (4) cooperation in capacity building, technical assistance and information sharing with particular attention to security of sea lanes, anti-piracy, prevention of pollution and search and rescue; (5) cooperation to combat terrorism and to promote cooperation in cyber security; and (6) cooperation in non-traditional security. Since 2007, defence cooperation has included high-level visits, Defence Strategy Dialogue and naval port visits. During President Sangs visit in October 2011, he requested Indian assistance: submarine training, pilot conversion trainin, modernization of Nha Trang port, and the transfer of medium-sized warships.

Peoples Republic of China

From Strategic Partnership to Strategic Cooperative Partnership In June 2008, following a summit of party leaders in Beijing, China-Vietnam bilateral relations were officially raised to that of strategic partners, and a year later this was upgraded to a strategic cooperative partnership. As strategic partners China and Vietnam have developed a dense network of party, state, defence and multilateral mechanisms to manage their bilateral relations including a Joint Steering Committee at deputy prime minister level. China is Vietnams largest trading partner but the relationships is unequal with Vietnam amassing a trade deficit of $12.6 billion in 2010. Defence Cooperation

5 China and Vietnam undertake defence cooperation in three areas: exchange of highlevel visits, strategic defence and security dialogues, and joint naval patrols and port visits. In October 2011, Defence Minister General Phung Quang Thanh accompanied party Secretary General Nguyen Phu Trong to Beijing. General Thanh met with his counterpart, Senior Lt. General Liang Guanglie, to review five key documents forming the basis of their defence relationship. In April 2012, Senior Lt. Gen. Do Ba Ty, Deputy Minister of National Defence and VPA Chief of Staff, while visiting Beijing, proposed opening direct communication between their two defence ministries and effectively using the existing direct line between their two navies. Since April 2006, the navies of both countries conducted thirteen joint patrols in the Gulf of Tonkin . The most recent joint patrols also included a Search and Rescue Exercise (SAREX) and anti-piracy exercises. In June 2009, in an historic first, two Vietnamese naval ships made a visit to Zhanjiang port in Guangdong province in Southwestern China. After the eleventh joint patrol was concluded, the Vietnamese ships paid a visit to Zhanjiang, Guangdong, Vietnams second ever port call to China.

Republic of Korea
Strategic Cooperative Partnership In 1997, Presidents Nguyen Minh Triet and Lee Myung-bak met in Hanoi and agreed to raise their Comprehensive Partnership in the 21st Century to a Strategic Cooperative Partnership. Under this agreement the two sides agreed to cooperate in politics and security, judicial and consular relations, economics, trade, investment, development cooperation, science and technology, environment and culture and education. The two countries regularly exchange high-level visits. Two-way trade between South Korea and Vietnam reached US $18 billion in 2011. South Korea registered US $24 billion in capital investment in 3,000 projects. The Republic of Korea earmarked US $215 million for development projects in Vietnam. Security Cooperation Like its other strategic partners, Vietnam and South Korea exchange highl-level defence and other visits, conduct strategic and national defence strategic dialogues and conduct naval port visits

Spain
Strategic Partnership Vietnam and Spain established a Forward Looking Strategic Partnership in December 2009 during the state visits of President Nguyen Minh Triet. Two-way trade was valued at US $1.4 billion in 2009. Security Cooperation

6 On September 21, 2010, Spain and Vietnam signed a MOU focused on defence cooperation between national defence industries and military education and training. Subsequently, it would appear that the Vietnam-Spain strategic partnership has become hostage to Spains economic woes.

United Kingdom
Strategic Partnership In 2010, Vietnam and the United Kingdom issued a Joint Declaration establishing a Strategic Partnership that included seven priority areas: 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. Ministries from both countries were tasked with coordinating specific Action Plans for each priority area. The two partners hold regular political consultations. Two-way trade between Vietnam and the UK was valued at US $2 billion in 2010. British investors have provided US $2.5 billion to capitalize 131 projects in Vietnam. Security Cooperation Vietnam and the United Kingdom held their 1st Strategic Dialogue in London on October 26, 2010. The following year Vietnam and the UK signed a MOU on defence cooperation covering three areas: political-defence cooperation, research, and military equipment supply. On March 28, 2012 Vietnam and the United Kingdom signed the 2012 Action Plan to further their Strategic Partnership. The Action Plan included a provision for stepping up defence cooperation in training, defence trade and peace support operations.

Germany
Strategic Partnership In October 2011, Germany and Vietnam announced their Strategic Partnership on the occasion of the state visit by Chancellor Angela Merkel. The two sides agreed to increase the exchange of high-ranking delegations including government and parliamentary agencies, political parties and scientific and strategic research institutes. Germany and Vietnam hold regular political consultations. Two-way trade between Germany and Vietnam was valued at US $4.7 billion in 2009. Security Cooperation In October 2004 Vietnam and Germany signed a MOU signed outlining collaboration in defence-related science and technology programs and military medicine. The MOU was extended in September 2010 and included cooperation by defence industries, military science and technology, military training, exchange visits at all levels, peacekeeping and

7 dealing with the consequences of war. The two defence ministries regularly exchange high-level visits.

Part II. Potential Strategic Partners

Australia
Australia and Vietnam characterize their bilateral relationship as a comprehensive partnership rather than a strategic partnership. This was announced during the visit of party Secretary General Nong Duc Manh to Canberra in September 2009. Six areas of cooperation were given priority: political relations and public policy exchanges; economic growth and trade development; development assistance and technical cooperation; defence and security relations; people-to-people links; and global and regional agenda. In October 2010 the two sides adopted a five-year Plan of Action to implement their comprehensive partnership. At the same time, Australia and Vietnam signed a MOU on defence cooperation including strategic-level policy dialogue, joint military training and exercises, and humanitarian assistance and disaster relief.

United States
Strategic Partnership? This idea of Vietnam becoming a strategic partner of the United States was first mentioned in the 2010 Quadrennial Defence Review. Vietnam was listed alongside Indonesia and Malaysia as a potential strategic partner. The two sides are currently negotiating an agreed text of an agreement on a strategic partnership.

France and Italy

Vietnam and France, as well as Vietnam and Italy, are currently negotiating strategic partnerships with the expectation that agreement will be reached in 2013. Defence Cooperation Vietnam and France signed a Defence Cooperation Agreement in December 2009 outlining cooperation in defence exchanges and assistance in training army medical personnel under the overview of a high-level Joint Committee on National Defence Cooperation

Conclusion
This paper is 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 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).

8 The term strategic partner is applied to states that have developed comprehensive bilateral relations with Vietnam (political-diplomatic, economic, science and technology, social-cultural and security and defence etc.). As the discussion in this paper has indicated the terms strategic partnership and strategic cooperative partnership (and other variants) are highly nuanced. In some cases strategic partnerships are embodied in formal declarations, in other cases the term strategic partnership is used flexibly to designate states that have close relations with Vietnam. The term strategic partner is a political term and identifies states that Vietnam considers particularly important to the attainment of its national interests. 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 raising their designation as strategic partners to comprehensive strategic partnership, in the case of Russia, and strategic cooperative partnership, in the cases of China and South Korea. What were the major developments in international defence cooperation with Vietnams strategic partners after the eleventh party congress? Russian Federation. Vietnams defence cooperation with Russia was overwhelmingly focused on the delivery of modern military platforms (Su-30 jet aircraft and Kiloclass submarines) and the purchase/co-production 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 Kilo-class submarines. In July 2012, Vietnam and the Russian Federation raised their strategic partnership to a comprehensive strategic partnership. Japan. Vietnam and Japan signed a MOU on defence cooperation mainly focused on strategic dialogue, high-level visits, defence exchanges between the VPA and the JSDF and cooperation in HA/DR. India. Vietnam entered discussion 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. China. Territorial disputes in the South China Sea appear to have been compartmentalized from their broader bilateral relationship, including bilateral 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.

9 Republic of Korea. Vietnam and South Korea explored cooperation between their national defence industries, including shipbuilding. Vietnam and South Korea held their 1st 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. Spain. Spains economic crisis apparently led to a hiatus in bilateral defence cooperation in 2011 and 2012. United Kingdom. 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. Germany. 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.

Vietnam may forge strategic partnerships with France and Italy in 2013 and possibly the United States thereafter.