Despite strains, Vietnam and China forge closer economic ties

HANOI: Tensions are high on the South China Sea as Vietnam faces off against China over their overlapping maritime claims.

But for the boatmen on the junks cruising the calm expanse of Vietnam’s Ha Long Bay, another growing Chinese presence in the region is very welcome indeed.

“More than half our tourists are Chinese now,” said Nguyen Van Phu, 33, who has spent six years working on the boats that chug between the bay’s spectacular stone towers. “If they stopped coming it would be a big problem, if not a disaster.”

The number of Chinese tourists in Vietnam has surged this year, just one sign of the growing economic ties between two longtime enemies. Chinese investment in Vietnam is also increasing rapidly, as is trade between the two countries.

But while tourists, trade and investment are being welcomed, they also present a challenge for a fiercely independent country like Vietnam, which has been wary of China’s growing influence in the region.

“Therisingeconomicdependence on China makes it more difficult for Vietnam to decide how far to confront China on the South China Sea,” said Nguyen Khac Giang, a researcher at the Vietnam Economics and Policy Research Institution.

Vietnam would suffer far more than China economically in the event of political instability given its smaller size, he said.

China exports more goods to Vietnam than any other country in Southeast Asia, sending textiles to be made into shirts and sneakers, and electronic components for mobile phones and large flatpanel displays. Those completed products are exported around the world, as well as back to China. — Reuters