The President of Vietnam Truong Tan Sang visited Japan from 16 to 19 March 2014. This was the latest in Vietnam’s foreign policy activism with a view to deepen diplomatic relations with the outside world. Sang was accompanied by his spouse Madam Mai Thi Hanh.
The visit was at the invitation of the Emperor Akihito and Empress Michiko of Japan. The significance of Sang’s visit at this critical time cannot be missed as Vietnam is confronting a mighty and belligerent China whose muscular demonstration of assertive stances on territorial issues have been unnerving the rest of Asia, Vietnam included. It is time to assess the outcome of Sang’s visit and what purpose it achieved.
Sang took the opportunity to highlight Vietnam’s “foreign policy of independence, self-reliance, peace, cooperation for development, multilateralism and diversification, willingness to be a friend of all nations and active international integration”. Since the establishment of diplomatic relations between the two countries in September 1973, many high level visits have contributed to the consolidation of bilateral ties. The establishment of strategic partnership agreements between the two countries proved to be the base for stability, cooperation and prosperity in each country.
Sang’s visit to Japan this time contributed to further consolidation of the economic and strategic ties. Sang also used the opportunity to share common view points on the regional issues.
Economic
During the visit, Sang visited Japan’s industrial centre in the Kansai region with the view to boost cooperation between two countries’ localities and businesses. He had a meeting with representatives of the Kansai Economic Federation (Kndeiren) and business leaders of the Kansai region. Vietnam is taking active part in ASEAN-Japan cooperation through ASEAN Plus+3 and free trade agreements with the European Union and the Customs Union of Russia, Belarus and Kazakhstan. Sang highlighted this and stressed that it is also a driving force behind ongoing negotiations on the Trans-Pacific Partnership agreement. While attending a Vietnam-Japan business forum in Osaka city, Sang remarked that Vietnam is deploying its 2011-2020 socio-economic development strategy towards the goal of becoming fully industrialised in 2020.
Sang exhorted business leaders to continue to contribute to Vietnam’s economic expansion and development in various fields spanning technology and agriculture. Sang observed that Japanese backing could help Vietnam to “enter a new phase of global value chain”, as the country’s economic trajectory continues to be high following a number of free trade agreements and multilateral agreements with the ASEAN member countries that are near conclusion. Indeed, the contribution of Japanese companies in Vietnam in the expansion and development of Vietnam’s economy and helping the country to enter a new era of modernisation and honing its industrial prowess is noteworthy.
What would be attractive to the potential Japanese investors about Vietnam is that inflation has hit a ten-year low and the country’s GDP grew by more than 5 per cent in 2013. Therefore, Vietnam as a potential investment destination for Japan has increased greatly. Currently, Japan is the fourth largest investor in Vietnam after China, the United States and South Korea. Sang paid a visit to Ibaraki Prefecture, northeast of Tokyo, where he inspected several farms and agricultural research facilities, machinery manufacturing and flower processing facilities. An understanding was reached to strengthen cooperation by way of bilateral technical and educational endeavours.
Vietnam and Japan have seen their relationship develop significantly in recent years. As one of the world’s leading economies, Japan was the first member of G-7 to welcome the Vietnamese Party General Secretary to Japan in 1995, establish a strategic partnership with Vietnam in 2009 and recognise Vietnam’s market economy in 2011. Japan remains the leading ODA donor to Vietnam: the East Asian country provided 2.1 trillion Yen ($21 billion) in ODA from 1992 to 2012 and $1.55 billion in 2013 alone. In 2013, Japan was Vietnam’s fourth-largest trade partner, with two-way trade hitting $25.16 billion, of which Vietnam earned $13.5 billion from selling mainly seafood, crude oil, garments and coal. In 2013, Japan was Vietnam’s leading investor, with capital totalling $5.88 billion, the largest figure for any single country. As of last December, it had 2,166 valid FDI projects in Vietnam with total registered capital of $34.7 billion. The number of new Japanese FDI projects approved by Vietnam in 2013 was 352, up from 317 in 2012. According to the Vietnamese Planning and Investment Ministry, the number of Japanese FDI reached a record high for the third consecutive year in 2013. Japanese investment overseas have slowed down due to a weaker yen, but Vietnam remains an active investment destination, reflecting Japan’s troubled relations with China and unrest in Thailand.
While welcoming new ODA from Japan totalling 120 billion Yen loans, high-ranking officials from the two countries also signed a document on five infrastructure projects to be funded using the yen loans, including building two expressway sections, an international port and a thermal electric power plant. Japan agreed to help Vietnam develop its industrial parks and implement Ninh Thuan 2 nuclear power project. The two sides also agreed to work closer in implementing high-level agreements as well as large-scale projects, with Japan helping Vietnam in its action plans for the key areas under its industrialisation strategy within the Vietnam-Japan cooperation framework.
Culture
The two countries also agreed to work together in the fields of human resource development, culture, sports, tourism, welfare, medical services, education and science and technology. The Japanese side pledged to support Vietnam in the upgrade of some key universities to meet international standards. Japan also promised to accept Vietnamese nurses, care workers and technical interns. From his side, Sang lauded Japan’s proposal on the setting up of a dialogue framework to promote cooperation in culture and people-to-people exchange between the two countries. While welcoming the increase in the number of school trips to Vietnam organised by Japanese high schools, both share the same view on the strengthening of cooperation in broadcasting, sports and tourism. Both sides also agreed to work together to simplify the visa application procedure for Vietnamese people.
Regional Security Issues
While delivering a speech in the House of Representatives, Sang said Vietnam firmly upholds the principle of resolving disputes through peaceful means. He warned against the use of force in territorial disputes as his nation and its neighbours lock horns with China over competing claims in the South China Sea. Sang observed: “”Vietnam has always maintained these principles over maritime disputes – resolution by peaceful means, compliance with international law and respect for each other’s due rights and sovereignty”. He further said: “Countries concerned should not make the situation complex, but rather exercise self-restraint. They should neither use force nor threaten to use force.” Though Sang did not refer to any particular country, he was apparently referring to China’s growing maritime assertiveness. But Vietnam and three other members of the Association of Southeast Asian Nations – the Philippines, Malaysia and Brunei – have opposed Beijing’s attempt to claim almost all of the South China Sea. Sang was the first state guest to deliver a speech in the Diet since French President Francois Hollande in June 2013.
Sang observed expanding and deepening Japan-Vietnam, relations would be important for the Asia-Pacific region’s peace and prosperity. He hoped to strengthen ties with Japan, which is also embroiled in a separate and bitter territorial dispute with China. Tokyo has called for stronger security ties with Asean members to try to ease the growing territorial tensions. At a joint press briefing, Sang and Japanese Prime Minister Shinzo Abe said they discussed regional peace, loans and grant aid to Vietnam and the possibility of Japan sending patrol boats to the country. Japan will send soon a fact-finding mission to assess Japan’s plan to provide patrol ships to beef up Vietnam’s coast guard.
Both the countries agreed to elevate their ties to a new level of Extensive Strategic Partnership for Peace and Prosperity in Asia. The upgrade came during the March 18 talks between Sang and Prime Minister Abe.
In a joint statement issued, Sang and Abe agreed that all relevant countries should comply with international law, including the 1982 United Nations Convention on the Law of the Sea (UNCLOS), in settling maritime security issues. Like Sang did not mention China in his address to the Diet, even the joint statement avoided mentioning any specific country/countries in mentioning maritime security issue. But it was apparent that it was designed to keep China in check, as Japan has the Senkaku dispute with China in the East China Sea and Vietnam has a similar row in the South China Sea. Abe expressed Japan’s willingness to assist Vietnam in enhancing its capacity in maritime law enforcement.
Sang also expressed support for Japan over the issue of North Korea’s abductions of Japanese nationals in the 1970s and 1980s. Since Vietnam has diplomatic relations with North Korea, Japan sought and Vietnam agreed to work with Japan to solve the abduction issue.
Abe and Sang also called for ensuring freedom of flight above the open seas, in an apparent criticism of China’s unilateral declaration in November of an air defence identification zone in the East China Sea. The US Pacific commander, Vice-Admiral Robert Thomas, who sailed to Manila on the USS Blue Ridge, stressed the Philippines’ importance as a military ally. “Our 62-year alliance with the Philippines remains key to our efforts to ensure the stability and prosperity of the Western Pacific,” he said. The US naval operations in international waters are likely to continue even if China asserts its domination over the South China Sea. Thomas is said to have remarked: “We’re going to continue to encourage freedom of access for all the maritime nations in the theatre, and as disputes come up, we’re going continue to encourage the dialogue, resolving it through the rule of law. We will continue to stand by our allies.”
Japan and China are locked in a bitter row over islands in the East China Sea administered by Japan as the Senkakus, but claimed by China as the Diaoyu Islands. Since Japan nationalised some of the archipelago in September 2012, Chinese government ships and planes have been seen off the disputed islands numerous times, sometimes within Japan’s territorial zone. Japan-China dispute has sparked air and sea confrontations, further exacerbating animosity over Japan’s military incursions across East Asia in the first half of the 20th century. Finding common grounds with Japan, Sang expressed concerns about China’s increasingly assertive stance beyond its borders, and observed territorial disputes in the region must be solved through peaceful means rather than with force. He seemed to urge restraint from China on its territorial disputes with Vietnam, Japan and other Asian countries in the South and East China seas. Echoing the position held by Japan, Sang remarked: “Vietnam keeps the principle of seeking a peaceful solution and abiding by international law,” and countries concerned “must exercise their self-control and not use force nor threaten to do so.”
Indeed, the East and South China Seas have emerged as new flashpoints in the Asian region, which continue to threaten the peace and stability of Asia. China’s foreign minister is known to have said “there is no room for compromise” with Japan and that China will “never accept unreasonable demands from smaller countries”. Vietnam’s long, bloody struggle with China over islands means Vietnam sides more with the Philippines, ASEAN nations than with its northern neighbour. Philippines seem to upgrade Ulugan Bay navy base in response to China’s disputed sea claims. While China aggressively enforces its fishing rules, apprehending boats weekly in what it calls “China’s waters”, US Commander Thomas reassured that the US would stand by its allies. The Philippines in turn agrees to let the US build facilities in areas claimed by it. A huge wealth of untapped oil is believed to be below the sea here. This makes the South China Sea the flashpoint. The chart I below shows the Air Defense Identification Zone or ADIZ declared by China over the East China Sea on 23, November 2013. The Chart II shows the area declared by China on 1 January 2014 as “an area under China’s jurisdiction.” China says “foreign fishing vessels” can only enter and work in this area with prior approval from China. Vietnam, the Philippines and others have said they will not comply with China’s law.
Chart I
China claims: Source China Defense Ministry
Chart II
China claims to South China Sea
In view of the above, Japan agreed to help improve Vietnam’s maritime policing capabilities in the face of China’s increasing activities in the South China Sea. This understanding elevates the strategic partnership between the two countries in a wide range of areas in a comprehensive manner. The positive result of Sang’s visit to Japan meant that both Japan and Vietnam will deepen cooperation and work together towards contributing constructively and proactively to peace and stability in the Asian region and the rest of the world. Indeed, maintaining order in the sea and air is extremely important for regional peace and stability. The resolve to realise this objective is the positive outcome of Sang’s visit to Japan.
Dr. Rajaram Panda is currently The Japan Foundation Fellow at Reitaku University, JAPAN. E-mail: rajaram.panda@gmail.com