The US expects to elevate its diplomatic relations with former foe Vietnam to the top level as US President Joe Biden travels to Hanoi in a week, in a move that might irk China and with unclear business implications.
Fearful of the potential reaction from its much larger neighbor, Vietnam had initially expressed caution about the upgrade.
That led the Biden administration to multiply efforts to persuade the Southeast Asian nation, including through multiple visits of high-ranking members of the US government in recent months.
Photo: Reuters
The unprecedented push has led Washington to expect to be elevated to the top tier of Vietnam’s diplomatic ranking, together with China and Russia, from two notches below now.
Biden said it publicly in July and officials in both countries have since informally expressed optimism about the two-step upgrade, although no official statements have been released from either government.
Perhaps seeking to assuage Beijing, Vietnam is discussing top-level visits to Hanoi after or even shortly before Biden’s arrival on Sunday, with officials saying Chinese President Xi Jinping (習近平) or Premier Li Qiang (李強) could meet Vietnamese leaders in the coming days or weeks.
The Chinese Ministry of Foreign Affairs did not immediately respond to a request for comment yesterday.
Risks that a double upgrade with Washington might not go down well in Beijing remain high, but Vietnam’s communist leaders might have calculated the best timing for the move is now as US relations with China are “likely to get worse in the future,” said Le Hong Hiep, a senior fellow at Singapore’s Iseas-Yusof Ishak Institute.
“Vietnam’s economy badly needs a boost in capital, technology, and market access,” said Alexander Vuving of the Hawaii-based Inouye Asia-Pacific Center for Security Studies, adding that might have been a key reason for the possible upgrade.
A boost of US military supplies to Hanoi has also long been discussed, but no immediate deal is expected as these talks take time, Hiep said.
Meanwhile, Vietnam is talking with several other countries to upgrade and expand its mostly Russian-made arsenal, and has recently engaged in multiple high-level defence meetings with top Russian officials.
Supporting Vietnam’s ambitions to become a hub for the semiconductor industry is also part of Washington’s inducements, but public funds so far available under the CHIPS Act are very limited.
The US might offer more, said Vu Tu Thanh, head of the Vietnam office of the US-ASEAN Business Council.
Energy is another sector where cooperation could increase, as Vietnam prepares to become a player in liquefied natural gas (LNG) and offshore wind although administrative and funding delays are dampening the mood.
The upgrade of relations is expected to boost US firms’ plans in Vietnam. Planemaker Boeing and energy firm AES might make announcements during Biden’s visit, people familiar with the plans said.
Boeing hopes to sell as many as 50 of its 737 MAX jets during the visit, they said.
The companies declined to comment.
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