Fortifying Indo-Vietnam Ties

Source: The Hitavada      Date: 06 Mar 2018 12:21:50

By Subrata Majumder

CLOSE on the visit of Vietnam’s Prime Minister Nguyen Xuan for the Republic Day celebrations, the visit of Vietnamese President Tran Dai Quang to India should be viewed from more than the angle of bilateral economic engagement. It has to be seen from the perspective of the two countries’ outreach for a strategic role in South China Sea and countering China’s aggressiveness in South East Asia. The back to back visit following Prime Minister Narendra Modi’s trip to Vietnam in September 2016 will mark a milestone for strong ties between the two countries, particularly when China is flexing its political and military clout to claim sovereignty in South China Sea, after losing the battle of arbitration in the UN. Incidentally, both Vietnam and India are the victims of Chinese aggression. The partnership is of paramount importance for India’s role in South East Asia under the umbrella of Mr. Modi’s Act Asia policy.

The paradox to Vietnam’s penchant for stronger ties with India is that both Vietnam and China are ruled by Communist regimes and China is the second biggest trading partner of Vietnam, as against India at the 10th position. Analysts feel that despite being its communist peer, Vietnam’s one party regime is widely regarded as more democratic than the Chinese Communist Party. Decisions are collectively taken by a 19-member politburo and the General Secretary, President and Prime Minister, who are part of it and have high stakes in decision-making.
The turning point for closer ties was Mr. Narendra Modi’s visit, the first by an Indian Prime Minister after 15 years, followed by the election of Vietnam’s new President Tran Dai Quang after China defied the arbitration ruling on the South China Sea issue. The visit proved to be a path-breaking achievement to refurbish relations when India - once known as a global leader for its non-alignment stand - offered defence co-operation and elevated the relations from strategic partnership to Comprehensive Strategic Partnership. Acknowledging the defence co-operation as the prime mover of the new bilateral relations, India committed a $500 million line of credit for procurement of defence equipment during the Modi visit.

Why is India a victim of South China Sea stir? Half of India’s international trade passes through South China Sea waters. Besides, China’s defiance haunts the maritime right of Vietnam in its Exclusive Economic Zone (EEZ) in the sea, where India is already engaged in exploring crude oil. In 2006, ONGC was awarded two oil blocks in Vietnam’s territorial waters. One of them was relinquished by ONGC. The remaining Block 128 got entangled with the dispute, when the Chinese company China National Offshore Oil Corporation (CNOOC) invited global bids for nine blocks, which are located in the Vietnam EEZ. Of these, two oil blocks overlap half of ONGC’s Block 128.

In 2014, dispute arose when Chinese oil rig company conducted oil drilling inside the Vietnam‘s EEZ. At this stage, India was at loggerheads with its off-shore oil drilling operation in Vietnam. Countrywide anti-China protest raged in Vietnam, resulting in 21 deaths. Since then the relations between Hanoi and Beijing began to sour. Even though China and Vietnam are ruled by Communist regimes and China is a major trading partner of Vietnam, it could not make a dent in the preference list of Vietnamese. India is much above China in the Vietnamese choice, despite economic relations between the two countries remaining at a low ebb. Vietnam is closer to India in terms of people-to-people relations.

According to Pew Research Centre, 66 per cent of Vietnamese have favourable opinion about India, as against 19 per cent for China. Further, 56 per cent of Vietnamese have confidence in Mr. Modi’s leadership for driving world affairs in the right direction, compared to 20 per cent in favour of Chinese President Xi Jinping.
The survey also found that a higher proportion of Vietnamese, 60 per cent, were much concerned about territorial disputes with China.

The truth is that Mr. Modi’s visit to Vietnam after the UN arbitration ruling, was a shot in the arm for Vietnam. It gave a mental boost for the Vietnamese to make their voice stronger against the Chinese bully in South China Sea. It sent signal of its concerns through the support of powerful countries and India was one of them. To this end, India’s credit line for the procurement of defence equipment and the India-Vietnam Defence Relations of May 2015, underpinned India’s bigger role in South East Asia, including South China SeaThe upgradation of the 10-year old strategic partnership between India and Vietnam into Comprehensive Strategic Partnership unleashed a deeper meaning for co-operation between the two countries.
India is among the ten trading partners of Vietnam. Currently, the total trade between the two countries is about $8 billion. In terms of India’s global trade, it is insignificant.
It accounts for 2 per cent only. Mr. Modi’s visit enhanced the target to $15 billion by 2020. ((IPA)