Vietnam: Heading into China's orbit

Editorial

Generals are not natural tree-huggers, but Vietnamese war hero Vo Nguyen Giap caused a stir recently when he publicly opposed Hanoi's approval of a Chinese plan to exploit bauxite reserves in his country's Central Highlands. In a state where people are routinely jailed for criticising government policy, General Giap's outburst highlights how Vietnam's civil society is evolving. Supported by other critics, he said Hanoi's US $15 billion (S $22 billion) plan to tap the country's bauxite reserves would damage the environment, displace minority populations and threaten national security.

The outburst by Gen Giap - who in his heyday defeated the French and American armies - is significant. There is no love lost between Vietnam and China. Save for a period of amity in the 1960s, China dominated Vietnam for 1,000 years. The two countries fought a brief war in 1979.

Despite its ingrained suspicion of its northern neighbour, however, Vietnam had approved the bauxite deal. This underscores a pertinent concern: China's grand strategy of scouring the world to find vital energy and mineral resources, never mind the consequences. A Foreign Affairs article argues that China has adapted its foreign policy to its domestic development strategy to an unprecedented level by encouraging state-controlled companies to seek out contracts in Africa. The worry is that China has pursued such contracts - and political patronage - while giving scant regard to issues such as human rights abuses, arms proliferation and environmental degradation.

Still, Beijing's growth-at-all-costs strategy could emerge as a win-win for both Vietnam and China. Both countries can still benefit commercially from the bauxite venture, if Hanoi becomes more sensitive to the concerns raised by Gen Giap and his supporters. Recently, Hanoi appeared to be moving in this direction, saying it would review the project's environmental impact and delay its full implementation.

In the final calculation, however, the magnetic pull of China's economy might prove too compelling for Hanoi. Vietnam is in dire economic straits. Foreign direct investment has plunged, while Hanoi runs a trade deficit with China - its biggest trading partner. One only needs to look at Australia's recent history to predict Vietnam's position vis-a-vis China. After reaping massive benefits from selling resources to China, Canberra's foreign policy is now tilting more towards China and away from its traditional ally, the United States. The same applies to Vietnam as well; domestic opposition or no, the bauxite deal could soon push it closer to China's orbit.