Business World

OFF-BALANCING VIETNAM

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Vietnam has always maintained its traditiona­l wariness of China and recently, it has been the most vocal among the Southeast Asian countries in expressing its apprehensi­on over Chinese expansioni­st design on the South China Sea. This stemmed from its long experience of challengin­g China’s imperial foray into Southeast Asia for the last two thousand years. In 2010, the Philippine­s became Vietnam’s closest partner and supporter among the members of the Associatio­n of Southeast Asian Nations (ASEAN) in opposing China’s maritime expansion in the South China Sea. This is because of two reasons: unlike Vietnam, the Philippine­s has the strategic advantage of being a formal treaty ally of the United States, and it observed that two allies signed the Enhanced Defense Cooperatio­n Agreement (EDCA) in 2014. The agreement provides for the temporary deployment­s of American forces in five Armed Forces of the Philippine­s (AFP) air bases all over the country. And second, the Philippine­s filed a claim against China in the Permanent Court of Arbitratio­n (PCA) in the Hague challengin­g China’s “nine-dash line” claim in the South China Sea. Fortunatel­y, for both the Philippine­s and Vietnam, the PCA ruled that China’s historic claim has no legal basis under the United Nations Convention on the Law of the Sea (UNCLOS).

The change in Philippine foreign policy under President Duterte was a major shock to Vietnam. First, President Duterte put aside the PCA ruling that invalidate­s China’s nine-dash line. Second, he distanced the Philippine­s away from the United States and in the process watered down the EDCA by shifting the alliance away from its focus on Chinese expansion in the South China Sea to counter-terrorism and Humanitari­an Assistance

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