The Pak Banker

Vietnam poised to be post-Brexit Britain’s Asia ally

- David Hutt

Now that Britain has finally left the European Union, after years of rumination and wrangling, it’s time to see what the Conservati­ve government means by a new “global Britain.” Perhaps a clue was the UK’s opening of a new mission to the ASEAN bloc in Jakarta on January 15, following the appointmen­t of a dedicated UK ambassador to the Associatio­n of Southeast Asian Nations in October.

As Prime Minister Boris Johnson promises to lead the biggest review of British foreign policy since the end of the Cold War, we will almost certainly see London take a closer interest in what is now referred to as the Indo-Pacific region. Last year, London introduced its “All of Asia” policy, which refocuses attention on Southeast Asia, and there is clearly interest in Whitehall to shift Britain’s focus away from areas like Africa and the Middle East to Asia, as I noted recently in Asia Times. Indeed, Foreign Secretary Dominic Raab’s first overseas trip as minister last year was to Bangkok for an ASEAN ministeria­l meeting, and he will tour Asia once again this week.

“If Britain is to become the global player Boris Johnson wants it to be, then it has to engage more strategica­lly in the Asia-Pacific,” Alexander Downer, chairman of Policy Exchange and a former Australian foreign minister, wrote in The Spectator last month Britain has argued that it should become a Dialogue Partner of ASEAN once out of the EU, despite the Southeast Asian bloc having a moratorium on new partnershi­ps, and to be given a seat at the ASEAN Defense Ministers’ Meeting Plus. The latter should be a no-brainer, given Britain’s importance to security in the region. If the former is acceded, it would be a major public relations victory for London’s promise to build a truly “global Britain.”

But like Brussels before it, London now faces a dilemma when dealing with Southeast Asia: Does it focus on interactio­ns through the ASEAN bloc, an often unyielding and unhelpful institutio­n, or focus on bilaterals, developing closer relations with assiduous partners in the region?

The natural sources of Britain’s attention might be Thailand, the usual conduit between Southeast Asia and the West, or its former colonies, Malaysia and Singapore. Both these Southeast Asian states are part of the Five Power Defense Arrangemen­ts, along with the UK, Australia and New Zealand, and the UK has troops stationed in Singapore. It also has a military base in Brunei, another former colony, and last year was said to be planning to open a new base somewhere in the Asia-Pacific, probably Australia, which is keen on the idea.

London would be wise, however, also to look to Vietnam, which holds the ASEAN chair this year and, therefore, considerab­le leverage over the region. It also holds a rotating chair at the UN Security Council this year, which ought to allow British and Vietnamese diplomats more speaking time. This year marks the 10th anniversar­y of the UK-Vietnam strategic partnershi­p, too. When the UK’s minister for Asia and the Pacific, Heather Wheeler, traveled to Hanoi after attending the opening of the new British mission to ASEAN last month, she stated: “We are committed to maintainin­g and strengthen­ing our relationsh­ips with ASEAN, and Vietnam in particular.”

Britain now needs to sign relatively easy free-trade agreements as it struggles to secure more complicate­d ones with the EU and the US – and a trade deal with Vietnam ought to be straightfo­rward and swift. The UK is thought to want to negotiate deals with Vietnam and Singapore along the lines of pacts the EU has already negotiated with them. Hanoi, too, is desperate to secure trade conditions with the UK for its export-driven economy, especially as Britain at the end of the year will no longer be part of the EU’s preferenti­al trade schemes that Vietnam enjoys.

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