Vietnam will be wary of getting too close to China

Significance

Vietnam has a policy of ‘cooperation and struggle’ towards China. The two sides have robust economic ties, but there are long-standing political and cultural tensions between them.

Impacts

• Vietnam will continue to champion diplomatic neutrality and refuse to take sides in great power competition.
• US trade sanctions on China should benefit Hanoi, as more Chinese factories will be forced to move offshore.
• Although various trade agreements will help diversify its trade base, Vietnam will remain reliant on Chinese supply chains.