The U.S-Vietnam Relations

The U.S-Vietnam Relations

I. Introduction

1.1 Background of Information 

During the Cold War, the U.S. and Vietnam relations were extremely tough which resulted in Second Indochina War. Vietnam was influenced by two major different ideologies, which the North by communism and the South by democracy.  Because the U.S was afraid that communism would overspread throughout Vietnam which also possibly to the rest of the region Southeast Asia, according to Domino theory, the U.S., using its containments, involved in Vietnam internal affairs by supporting the South against the communist North in 1954 (Nick and Michael, 2011). Their relations broke up since then, and even still after the war, until 1995 when the United States announced the formal normalization of diplomatic relations with Vietnam.

1.2 Main Research Question: 

What are reasons for US and VN renormalization of relation from 1995 until now?

1.3 Sub-Research Questions:

1. Was the reason of the renormalization of their relations economic purposes?

2. Was the renormalization because of their defense and security?

3. Was the normalization for their political and social cooperation?

    1.5      Scope and Limitation: 

This research paper is limited to investigate only three factors of U.S.-Vietnam renormalization of their relations from 1995 until 2015.

    1.6     Significance: 

The paper is to contribute some basic understandings about U.S.-Vietnam relations during the cold war as well as in New Era. More importantly, this paper aims to discover main reasons why the U.S and Vietnam renormalized their relations from 1995.  Furthermore, it partly talk about implications from the new U.S.-VN relations on the region Southeast Asia in terms of politics and economies, especially the issues in the South China Sea Disputes.

II. Body 

2.1 Economic Purposes

Vietnam War was the bitter legacy of Vietnamese people and the United States. Therefore, the diplomat relations between the two countries became frozen after communist Vietnam gained victory in South Vietnam. The absence of diplomatic relations did not provide any benefit to both states; thus, in 1995 they renormalized their diplomat relations, which mainly focus on economic integrations. The U.S desires to rebalance to Asia-Pacific, mainly with China economic development. The geographical strategic of Vietnam, moreover, is the core interesting part of this restoration. It is also the midpoint connecting Northeast and Southeast Asia, Vietnam has a 2,000 miles coastline facing the South China Sea, where 90 million people live which increasingly vibrant the economic development. (MURRAY HIEBERT,PHUONGNGUYEN, AND GREGORY B. POLIN, 2014). As the result, in 2001, the U.S. and Vietnam signed bilateral trade agreement that was a good signal for both countries' economy (HANOI.VEITNAM, 2015). More importantly, in 2013, Vietnam and the U.S became bilateral comprehensive partnership after meeting in Washington between U.S. President Barack Obama and Vietnams President Truong Tan Sang (Vuving, 2015)

The bilateral economic relation has brought Vietnam economic and the U.S. have become more prosperous and more integration. Through this bilateral, the most beneficial of Vietnam economic is the expansion of products to American market by normal trade relation status, which allows exporters to access to the massive the U.S market on the competitive basic with tariff reduction on most import from Vietnam (Le, 2013). For the U.S side, the normal trade relation status gave great opportunities to extend U.S. investment and tariff reduction from most imports from Vietnam, and allowed US to become the third largest trading partner of Vietnam (Le, 2013).  Under this economic relation, Vietnam's ability of export will greatly increase and the number of foreign direct investment (FDI) will grow dramatically (USA international Business Publications, 2008). Particularly, in 2007, the total two-way trade in goods between US and Vietnam was $12.53 billion, an increase of 29 percent from 2006 that also reflects a 73 percent increase in US export to Vietnam (Vietnam, 2008). By 2013, total US investment has 651 valid projects with total investment of US $10.4 billion Additionally,  2013, Vietnam's exports to the U.S. market reached $24.6 billion, 22 percent higher than the previous year and nearly 10 times higher than 2002 (MURRAY HIEBERT,PHUONGNGUYEN, AND GREGORY B. POLIN, 2014). The outcome of increasing FDI has attracted more U.S. industries, companies, and individuals to invest there. It has created million job opportunities, improving the standard of living of Vietnamese people and developing its infrastructure. According to World Bank statistic, GDP per capita of Vietnam keeps growing constantly since 1984 until present. Notably, GDP per capita in Vietnam was reached to 1077.91 US Dollars in 2014 (Economics). Additionally, Vietnam will bind its textile and apparel tariffs at 7 percent for yarn, 12 percent for fabric, and 20 percent for apparel (International Business Publication, 2008). Another crucial benefit to Vietnam, it is a bridge to join World Trade Organization. Thus, Vietnam has more opportunities in global economic integration (Le, 2013). The removal of tariff barriers and quotas allowed this country to access its products to the world market, and allowed Vietnam enjoy the latest technological advances for national modernization and industrialization (Dan, 2005). As the result of this agreement, Vietnam has joined in international institution such as Trans-Pacific Strategic Economic Partnership, ASEAN, and APEC that gave a huge incentive to Vietnam related to tariff barriers (Le, 2013). The outcome of this relation demonstrated that both countries has enjoyed their economic prosperity which it absent for long time ago.

2.2 Defense and Security 

The relations between China and Vietnam have been strained throughout history. Therefore, tensions between China and Vietnam, specifically in South China Sea, and significant power raising of China contribute to a better relationship between the U.S. and Vietnam as Balance-of-power theory suggesting that having allies and improving own capability are what states, particularly small ones, have to do for their own security.  For Vietnam, it is very critical to have U.S as an ally for its defense and security. Geographically, what-so called Sandwich location, Vietnam is located next to China on the south and China’s close ally, Cambodia, on the west, so it is quite dangerous for Vietnam as a less developed country having such enemy, China, as a powerful state. As a result, it is the best and only way, can be done, for Vietnam to have supports in terms of strategic partnerships, aids, military, assistance and training from the superpower U.S. An example of their relations concludes the annual high-level security meetings in Washington which specified the Political, Security, and Defense Dialogue and the Defense Policy Dialogue (Carl, November 2013). Moreover, the U.S and Vietnam are holding more or less the same idea “the enemy of my enemy is my friend” For the United States, it intends prevent the influence of China. The U.S is afraid that the entire Southeast Asia will fall under the power of China; therefore, having as many allies as possible in Southeast Asia is utmost for the U.S. Although diplomatically the U.S. says its involvements in Southeast Asia including Vietnam are non-zero-sum game, not to complete with China, reality shows clearly it tries to prevent the China’s dominance on the region (Munir Majid, n.d). Vietnam’s location is also part of interest for the U.S. Since Vietnam lies on the rest of the east from China to south, the coasts and maritime can be beneficial for U.S military bases if something really goes wrong between U.S and China. According to the RAND Cooperation, the China raising and the perspectives of Southeast Asian states toward China are a shaper of the region future and the U.S. Military posture in the region ( Richard, Angel, C. Richard). Clearly, the renormalization of U.S. and V.N relations can be inferred from their defense and security. 

2.3 Political and Social Cooperation 

Political and Social cooperation are also another reason for their relation normalization. They both tend make the social improvements, for they think it is the only way by restoring their relations. For instance,  in July 2013, the U.S. provided assistance on cooperation including political and diplomatic relations, trade, environment, health, education and so on and that was to response the investigating prison of wars/missing in action (POW/MIA) from Vietnam since August 2011 (Diplomacy in Action, 2015). With this kind of cooperation, Vietnam can earn many benefits from the U.S ranging from human resource training to nuclear energy agreement. An example concludes an agreement on civilian nuclear energy cooperation which has entered into force. Moreover, the agreement established the terms for commercial nuclear trade, research and technology exchanges between the U.S and Vietnam (NEI, October 2014). In 21th century, moreover, despite the differences of political system, the two countries open diplomacy through reaching an agreement called strategic partnership in 2013 that Vietnamese President Truong Tan talked to US President Barack Obama about respecting for its political system, sovereignty and territorial integrity whereas they always had a desire to turn its politics to “peaceful evolution”. These were also development and dignity among all peoples. In turn, the United States always concerns about human rights that is why it rebuilt the relationship, for the U.S can improve human rights and promote democratic government within Vietnam. The agendas of the U.S. also include improving human rights, and due to the fact that Vietnam needs supports from US as investers and trade, Vietnam, as a result, more or less has to respect its own people’ rights. On top of that, the U.S. will be able to have opportunities to further spread democratization and protection of human rights in Vietnam. In short, renormalizing their relations, both countries see they can improve the political and social sector.

III. Conclusion

To sum up, although the history relation of these countries was bitter with each other during the Vietnam War period, eventually, they still can find a peaceful means to restore their relation in order to find mutual benefits from this relation. Normalization diplomatic in 1995 between the United States and Vietnam is the brilliant strategic and remarkable world record of both states that allows them to enjoy their economic prosperity through bilateral economic tie that upgrade the investment environment in both countries jump up significantly, especially when they  became the comprehensive strategic partnership. From security and defense perspective, we can see that this relation has strengthened the capability of Vietnam stronger in both mainland and maritime security, particularly the capability toward China in South China dispute, which is the controversial issue in Southeast Asia, and it vastly threats Vietnam security. Moreover, the normalization also bring the US to expanse it power in Asia-Pacific in order to prevent the influence of China in this regional. The last benefit of this relation is political and social view. Due to the U.S. sees that they can improve on social and political cooperation, mainly human rights and democratization in Vietnam, they think the only way to deal is to restore their relations. For Vietnam perspective, the normalization is the part to improve its social welfare such as education, health, and technological advance. 

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