{"id":38339,"date":"2024-11-26T12:06:04","date_gmt":"2024-11-26T10:06:04","guid":{"rendered":"https:\/\/europeanvalues.cz\/?p=38339"},"modified":"2024-11-27T18:51:48","modified_gmt":"2024-11-27T16:51:48","slug":"let-the-money-talk-trump-to-and-the-future-of-vietnam-us-relations","status":"publish","type":"post","link":"https:\/\/europeanvalues.cz\/en\/let-the-money-talk-trump-to-and-the-future-of-vietnam-us-relations\/","title":{"rendered":"Let the Money Talk! Trump, T\u00f4, and the Future of Vietnam-US Relations"},"content":{"rendered":"\t\t
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What Is Happening?\u00a0<\/h2>

With their complex and tumultuous shared history, Washington and Hanoi now find themselves at the crossroads amid leadership change. Vietnam recently witnessed high-level political machinations in Hanoi. The death of former Secretary-General of the Communist Party of Vietnam (CPV) Nguy\u1ec5n Ph\u00fa Tr\u1ecdng ringed in a period of volatility, during which the presidency changed hands several times amid a contentious anti-corruption campaign. Ultimately, former Minister of Public Security T\u00f4 L\u00e2m took over as CPV\u2019s Secretary-General and the country\u2019s new president.<\/strong> However, he soon relinquished the presidency to General L\u01b0\u01a1ng C\u01b0\u1eddng. With Donald Trump back in the White House, the relationship between the two new administrations will have crucial implications for the Indo-Pacific region\u2019s geopolitical and economic dynamics.<\/p>

\u00a0<\/h2>

What is the broader picture?\u00a0<\/h2>

Political stability is a cornerstone of Vietnam\u2019s economic success. However, turbulent leadership changes over the past two years<\/strong> have undermined the image of stability among Hanoi\u2019s international partners. In the post-pandemic era, Vietnam has experienced a record surge in foreign direct investments<\/a>. It is seen as one of the biggest beneficiaries of the “de-risking” strategy<\/strong> adopted by high-income economies around the globe while distancing themselves from the People\u2019s Republic of China. \u00a0However, corruption remains a persistent issue<\/strong><\/a>,<\/strong> causing some businesses to divert their investments elsewhere or withdraw from Vietnam entirely.<\/p>

T\u00f4 L\u00e2m now firmly holds the reins of power, suggesting that political stability will likely endure until 2026, when the party congress will convene to elect new leadership. While authoritarian, T\u00f4 L\u00e2m is also a pragmatist who understands that the legitimacy of the party\u2014and thus the regime\u2019s security\u2014depends mainly on economic development. This pragmatism sets the stage for advancing ties with the United States, an important trading and strategically significant partner for Vietnam. By deploying its idiosyncratic \u201cbamboo diplomacy\u201d strategy, the country must carefully navigate its foreign policy through the increasingly turbulent geopolitical waters of the Indo-Pacific.<\/p>

Despite some issues, such as the circumvention of U.S. sanctions on Chinese goods and an increasing trade imbalance unfavorable to Washington<\/a>, the Trump administration\u2019s first term marked significant progress in U.S.-Vietnam relations. Its achievements included high-level meetings, Vietnam\u2019s aid during the COVID-19 pandemic, enhanced security cooperation in arms sales, and transfer of High Endurance Cutters to Vietnam\u2019s Coast Guard or port visits by two U.S. aircraft carriers.\u00a0<\/p>

Amid Hanoi\u2019s concerns about growing Chinese assertiveness in the region, these events helped bridge historical grievances and foster strategic trust<\/strong> between the former adversaries. This year\u2019s elevation of the relationship to a \u201ccomprehensive strategic partnership<\/a>,\u201d the highest level of bilateral relations, marked the pinnacle of this reproachment. By taking this step, Hanoi even bypassed the intermediate \u201cstrategic partnership\u201d level, risking Beijing\u2019s ire but securing an enticing offer from Washington<\/a>: to transform Vietnam into a hub for cutting-edge semiconductor manufacturing<\/strong> integrated into U.S.-friendly supply chains as part of the American \u201cfriend-shoring\u201d policy<\/strong>.<\/p>

It remains uncertain whether Washington and Hanoi will sustain these positive dynamics with new leaders in office. However, given the transactional nature of both leaders\u2019 approaches<\/a> and their shared perception of the Chinese threat, it is perhaps more likely they will find common ground on unresolved issues. With the ongoing war in Ukraine highlighting the shortcomings of Russian military systems, Vietnam may also pursue additional purchases of U.S. defense systems. Such acquisitions could, therefore, help reduce Vietnam\u2019s trade surplus with the United States<\/strong>, a sore point for Donald Trump. Another unresolved question is how the Trump administration will address human rights violations in Vietnam. While Trump is infamously indifferent to such issues, his future Secretary of State, Marco Rubio, has a long record<\/a> of championing human rights in Southeast Asia, including Vietnam.\u00a0<\/p>

\u00a0<\/h2>

Why is it important?\u00a0<\/h2>

President-elect Trump also has recently established new private business interests in Vietnam. His family business, the Trump Organization, lately signed a memorandum<\/strong><\/a> to develop a $1.5 billion luxury golf resort<\/strong> in Hung Yen Province\u2014the home region of CPV leader T\u00f4 L\u00e2m\u2014with Trump himself attending the ceremony. This raises questions about how much Trump will prioritize his business ventures at the expense of his administration\u2019s interests. Observers will closely watch whether Trump, who labeled Vietnam as “the worst abuser<\/a>” of American trade in 2019, will continue to criticize the country the same way\u2014or whether his investments will soften his tone. The implications of his private business activities, evident conflicts of interest, and <\/strong>direct ties to Vietnam\u2019s ruling clique<\/strong><\/a> for bilateral relations remain to be seen. It is clear, however, that business\u2014whether in the form of strategic U.S. investments, U.S. arms sales, or Trump\u2019s private ventures\u2014will play a central role in shaping U.S.-Vietnam relations moving forward.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

What Is Happening?\u00a0 With their complex and tumultuous shared history, Washington and Hanoi now find themselves at the crossroads amid leadership change. Vietnam recently witnessed high-level political machinations in Hanoi. The death of former Secretary-General of the Communist Party of Vietnam (CPV) Nguy\u1ec5n Ph\u00fa Tr\u1ecdng ringed in a period of volatility, during which the presidency […]<\/p>\n","protected":false},"author":7,"featured_media":38318,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[500],"tags":[552],"class_list":["post-38339","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-ondrej-malek"],"yoast_head":"\nLet the Money Talk! 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