Vietnam, Japan deepen strategic partnership

[southeastsea]

Vietnam, Japan deepen strategic partnership
By Robert Tofani
Vietnamese president Truong Tan Sang has paid a three-day state visit to Japan from March 16-19 at the invitation of Emperor Akihito. The visit, that follows a meeting between the two Ministries of Finance held in Tokyo at the beginning of the month, “highlights a significant political event that will bolster bilateral political trust and strategic partnership in the light of regional and global rapid changes,” as underlined by the Vietnam News Agency.
Vietnam officially established diplomatic relations with Japan on September 21, 1973. The bilateral ties have rapidly developed in various fields and have been growing unceasingly from a reliable partnership in 2002 to a strategic partnership in 2009. Currently, Japan is the largest official development assistance (ODA) donor for Vietnam, accounting for about 30 percent of total ODA commitment that the international community pledges for the Southeast Asian nation each year. Since 1993, Japan has committed more than 21 billion USD in ODA, contributing to the country’s socio-economic development. According to Japanese data, its commitment for the current year will not be less than the 1.94 billion USD it provided last year. The announcement was made in Hanoi on March 6 by Mutsuya Mori, the chief representative of the Japan International Cooperation Agency in Vietnam. Among the recent projects funded via ODA are a beltway around Hanoi, a terminal at Noi Bai international airport, and renovation of the Da Nhim hydropower plant built in the 1960s with Japanese funding in south-central Vietnam. According to the Vietnamese press, “the three projects received around 534.5 million USD.”
Japan is thus one of Vietnam’s most important economic partners, with the two-way trade estimated at 25.6 billion USD in 2013. Japan was the first G7 country to recognize the market economy status of Vietnam in October 2011, two years after which the Japan-Vietnam Economic Partnership Agreement (JVEPA) entered into force, thus marking a new milestone in two-way economic relations.
Signed on 25 December 2008 the JVEPA is a comprehensive bilateral agreement that should boost trade liberalization of goods and services, economic cooperation and investment between the two countries. It has been also agreed to advance the Vietnamese Supporting Industries (SI) for Japanese and Vietnamese enterprises. Besides, according to Japan External Trade Organization (JETRO) SI development is one of the themes under the framework of the “Vietnam- Japan Joint Initiative”, which was launched to improve business climate in Vietnam upon the agreement by the two Prime Ministers. JETRO recently released the results of a survey on business operations in 2013. Accordingly, up to 70 percent of Japanese firms investing in Vietnam have plans to expand business and continue to consider Vietnam an important outpost.
“There are about 2,000 Japanese businesses investing in Vietnam, including representative offices. It can be said that the investment as well as business activities of these businesses have gone into its development trajectory. Therefore, these companies are looking to expand their operations in Vietnam. This was clearly shown in 2013 when the number of expanded projects dramatically increased,” Atsusuke Kawada, Chief Representative of JETRO in Hanoi, said at a press briefing during this week. However, according to the survey, investing in Vietnam still bears risks, namely sky-rocketing labour cost, administrative procedures, unclear policies, complicated tax regime, customs procedures and legal system. In particular, “over 60 percent of the businesses said that the laws and policies, administrative procedures, tax regimes, customs procedures, increasing labour costs are big problems.” Overall, about 90 percent of businesses are optimistic saying that the main reason to expand business is an “increase in sales”. And in fact, Japan is the number one investor in Vietnam. As of August 20, 2013, Japan invested 33.06 billion USD in 2,029 projects in Vietnam, ranking first among foreign investors in Vietnam by investment value and ranking third in projects. Japanese investors also disbursed 10.8 billion USD of registered capital, ranking second in this category. Adding to this, Vietnam and Japan are both negotiating the Trans-Pacific Partnership Agreement (TPP), promoted by the United States. An economic relationship that excludes China.
Apart from the economic front, some observers view the desire to deepen the strategic partnership between the two East Asian countries as a move to counterbalance the People’s Republic of China, although neither Hanoi nor Tokyo officially affirms this. It is not known if the two representatives will discuss the geopolitical situation in the South China Sea and in the East Sea, where both nations claim sovereignty on islands disputed with China. The speech that President Sang will deliver at the Japanese Lower House, where only a few of foreign heads of state have a chance to speak, will say more also on this front.

 

[waltky]

China siphonin' off Vietnam's oil...

China drilling in Vietnam waters in latest South China Sea dispute
May 6, 2014 — China is now drilling for oil in waters claimed by Vietnam in the latest episode of disputes over territory in the South China Sea — a region that deeply concerns U.S. strategists focused on preserving freedom of navigation.

Vietnam foreign ministry spokesman Le Hai Binh said the Chinese deep water drilling rig was operating about 150 miles from Vietnam’s coast, in an area “undeniably within Viet Nam’s exclusive economic zone and continental shelf.” “Viet Nam resolutely protests any activity conducted by foreign countries in its waters without permission,” Binh said in a statement posted on the foreign ministry’s website. “Such an activity is illegal and void.” International maritime law generally considers waters within 200 nautical miles (230 statute miles) of a country’s borders to be part of its exclusive economic zone.

The drilling site is about 225 miles from China’s Hainan Island, which is connected by a bridge to the Chinese mainland. However, the site is about 30 miles from the disputed Paracel Islands, which China declared part of the prefectural-level city of Sansha in 2012. The islands and reefs themselves are of little value, but the surrounding waters are thought to contain vast oil and natural gas resources. China claims the islands — along with about 90 percent of the South China Sea — based largely on what it deems historical discovery. Its claims clash with those of Vietnam, the Philippines, Brunei, Malaysia, Indonesia and Taiwan. Those nations base their claims mostly on international law, though Binh noted in his statement that Vietnam has “sufficient historical evidence and legal bases” to claim sovereignty over the Paracel Islands.

When asked about Vietnam's protest, Chinese foreign ministry spokeswoman Hua Chunying said the rig was operating “completely within the waters of China's Paracel Islands,” according to Reuters. Hua declined to elaborate. The Maritime Safety Administration of China announced May 3 on its website that all ships should stay one mile away from the rig, called the Haiyang Shiyou 981. China’s move comes just after President Barack Obama’s visit to Japan, South Korea, the Philippines and Malaysia. All except South Korea have territorial disputes with China. During a news conference in Manila, Obama noted that the United States doesn’t “go around sending ships and threatening folks” when it has territorial disputes, a pointed reference to China’s actions.

In recent years, China has held multiple maritime standoffs with Vietnamese and Philippine ships. Recently, Chinese ships tried to block the resupply of a rusting barge manned by a small Philippine garrison at the disputed Second Thomas Shoal. Obama also voiced support for Manila’s right to challenge Chinese claims in international court. The Philippines filed a 4,000 page brief at the international Permanent Court of Arbitration in The Hague on March 30, challenging a map that China uses to assert South China Sea control. The U.S. Navy conducts freedom of navigation operations in areas to assert international rights of sea passage in areas in regions with “unlawful maritime sovereignty claims,” according to the State Department. A report to Congress stated that the Navy carried out such operations on China and 10 other nations in fiscal year 2013, including allies like the Philippines.

China drilling in Vietnam waters in latest South China Sea dispute - Pacific - Stripes

See also:

Chinese, Vietnamese navy ships collide, sparking standoff
May 7, 2014 — Vietnamese and Chinese ships collided Wednesday near a Chinese oil rig in waters claimed by both nations in the South China Sea, further escalating a rift that began when China began drilling near a disputed island group last weekend.

A Vietnamese official told The Associated Press that no ammunition was fired and there were no reports of injuries as a result of the standoff in waters near the Paracel Islands, about 150 miles from the Vietnamese coast and about 225 miles from China’s Hainan Island. China has held de facto control over the islands since a naval battle with South Vietnam in 1974, but Vietnam maintains its claim. Two foreign diplomats told AP that Vietnam dispatched up to 29 armed naval and coast guard ships to areas near the oil rig when it became aware of China’s intentions. The Vietnamese official said the flotilla was outnumbered by the size of a Chinese fleet escorting the rig, according to AP.

AP reported that all officials spoke on condition of anonymity because of the sensitivity of the information. Chinese claims to roughly 90 percent of the South China Sea — despite competing claims from Malaysia, Vietnam, the Philippines, Indonesia, Brunei and Taiwan — have increasingly concerned security officials in the United States and elsewhere, largely because of their potential to spark conflict in an area where much of the world’s energy resources and consumer goods travel on ships.

The United States also operates ships in the region in a bid to preserve freedom of navigation in international waters — a concept China views far differently than the U.S. and many of its neighbors. While most nations claim rights to operations in the Exclusive Economic Zones within 200 nautical miles of a nation’s shores, China does not. Prior to reports of the collision, Daniel Russel, Assistant U.S. Secretary of State for East Asian and Pacific Affairs, said Wednesday that the United States was watching the conflict, but urged caution from all sides. “We believe that it is critically important for each of the claimant countries to exercise care and restraint,” he told Reuters during a visit to Hong Kong, ahead of a previously scheduled trip to Hanoi on Wednesday. “The global economy is too fragile and regional stability is too important to be put at risk over short-term economic advantage.”

The Maritime Safety Administration of China announced May 3 on its website that all ships should stay away from the rig, called the Haiyang Shiyou 981. The decision drew immediate condemnation from Vietnam, where a foreign ministry spokesman called the area “undeniably within Vietnam’s exclusive economic zone and continental shelf.” International maritime law generally considers waters within 200 nautical miles (230 statute miles) of a country’s borders to be part of its exclusive economic zone. China maintains it owns the area largely through a claim of historical discovery. “Relevant drilling work is totally within waters off China’s Xisha islands,” said Chinese foreign ministry spokeswoman Hua Chunying, using a Chinese name for the Paracels, when asked about the escalating situation by reporters on May 6. Hua declined to elaborate.

MORE

 

[Geaux4it]

China, Vietnam, Philippines face off in South China Sea

(Reuters) - China has demanded the Philippines release a Chinese fishing boat and its crew seized in the disputed South China Sea on Wednesday, the latest flare-up in the oil and gas-rich waters that are claimed wholly or in part by six nations.

Tensions are also brewing in another part of the sea, where China has warned Vietnam not to disturb activities of Chinese companies operating near disputed islands. Earlier, Hanoi condemned the movement of a giant Chinese oil rig into what it said was its territorial waters.

China, Vietnam, Philippines face off in South China Sea | Reuters

 

[Vikrant]

Sooner or later we the people of the world will have to do something about China.

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NEW DELHI: India has joined the US in ringing alarm bells over China's expansionist expeditions in the South China Sea clashing with Vietnam and the Philippines early this week. Though trying to play safe, New Delhi refused to name China or Vietnam and instead called for freedom of navigation in the sea.

Almost five days after Chinese ships reportedly rammed Vietnamese vessels near the Paracel Islands, the external affairs ministry said it is concerned about the "recent developments" in the South China Sea. In a statement, the foreign office said, "We would like to see resolution of the issue through peaceful means in accordance with universally recognized principles of international law."

It is unclear whether India is referring to the issue of conflicting sovereignty of the areas that China and Vietnam claim, or whether it was concerned about a potential flare-up as a result of Chinese and Vietnamese ships apparently ramming each other and Chinese spraying them with water cannons.

Calling for "cooperation in ensuring security of sea-lanes and strengthening of maritime security", India maintained freedom of navigation in the South China Sea should not be impeded.

Vietnam posted videos of how its ships were rammed by Chinese civilian and military vessels which formed the group that accompanied the CNOOC mobile oil rig, Haiyang Shiyou 981, which showed up in Vietnam's exclusive economic zone (EEZ) for oil exploration activities. The rig was accompanied by a flotilla of civilian and military ships. According to Vietnam reports, after its naval vessels asked Chinese ships to move out, the Chinese ships rammed them, reportedly injuring six sailors.

Vietnam military spokesperson was quoted by the foreign media as saying, "Vietnam has exercised restraint". "But if Chinese vessels continue ramming Vietnamese ships, we'll have to act out of self-defence," said a senior Vietnamese commander.

The Chinese have defended their actions, saying the Vietnamese ships had rammed theirs 171 times. Yi Xianliang, deputy director general of the department of boundary and ocean affairs, was quoted as saying, "Vietnam had started the problem. Between May 3 and May 7, Vietnam has dispatched 35 ships that have rammed Chinese vessels 171 times." "Chinese ships are government ships. Vietnam ships are armed," he said.

China-Vietnam face-off in South China Sea leaves India worried - The Times of India

 

[waltky]

China gettin' pushy with it's neighbors...

Emotions Running High in Vietnam Over China Dispute
May 13, 2014 — Tension is rising in Vietnam with protests reported nationwide amid the country's dispute with Beijing over a Chinese oil drilling platform deployed near the Paracel islands.

According to local newspapers in Hanoi, thousands of workers at Hong Kong and Taiwanese factories in South Vietnam were taking to the streets, calling for China to remove a giant state-run oil rig from Vietnamese waters. A hotel at a popular beach town reportedly is refusing Chinese guests, and Vietnamese tourists are canceling trips to China.

Over the weekend, hundreds of people demonstrated outside the Chinese embassy in Hanoi, with similar protests taking place across the country. More protests are expected to take place this week. Vietnam's state-controlled media usually only carry muted coverage of diplomatic relations with China. This week there has been extensive reporting, however, on the confrontation and the protests.

Growing dispute

Vietnam expert and former U.S. diplomat David Brown said initial reports of the oil rig incident were more restrained, but then quickly changed. “This was from a guy at one of the mainstream papers who said they had been told that they could reprint anything they had got from foreigners. But they were supposed to be careful about what they wrote otherwise, that was the first day or so,” said Brown. Vietnam’s Communist Party has long stressed the economic and political importance of what it calls the East Sea, an area believed to be rich in oil and gas reserves.

A plainclothes policeman walks past demonstrators during an anti-China protest in front of the Chinese embassy in Hanoi

However, Block 143, where China's state-owned oil rig HD-981 was towed earlier this month, is not being developed. Professor Carl Thayer at the Australian Defense Force Academy, said there’s “a kind of consensus among oil industry people that it’s not the most promising.” “Bloc 143 is not being developed. Vietnam has made little efforts to do so, so in other words they are just arguing to maintain their Exclusive Economic Zone. If you go to the next block, there are operations going on there. ExxonMobil are a couple of fields away,” said Thayer.

Some observers have speculated that the move was driven by the China National Offshore Oil Company, CNOOC, though Thayer disagrees. “I’ve heard that the China National Offshore Oil Company, when asked to go there initially, argued back that no, it was too costly to operate over an extended period of time and it wasn’t a high priority for them. Then they were ordered to go in,” he said. Thayer said the issue is about sovereignty, not economic gain.

Dominating ASEAN

See also:

Philippines Says China Reclaiming Land in Disputed South China Sea
May 14, 2014 ~ The Philippines says China appears to be preparing to build an airstrip or military outpost on a reef in a part of the South China Sea claimed by both Manila and Beijing.

The Philippine Foreign Ministry says satellite photos show China has moved large amounts of dirt and other materials to the Johnson Reef, in an attempt to expand the land area. Various Philippine officials speculated China may be trying to build an airstrip or military base on the submerged reef, though others stress Beijing's intentions are not known. Manila says the land reclamation violates a regional code of conduct. It filed a protest with China at last week's meeting of the Association of Southeast Asian Nations.

It is the latest move by China to gradually assert control in the South China Sea, where it has overlapping claims with the Philippines, Vietnam, Brunei, and Malaysia. Tensions are also rising in another part of the sea; last month, China placed a giant, state-run oil rig near the Paracel Islands over the objections of Vietnam. Chinese and Vietnamese vessels have since collided with each other and exchanged water cannon fire, raising fears the situation could escalate further.

China claims nearly the entire 2.5-square kilometer South China Sea based on historical maps, but only recently has been making regular efforts to enforce those claims. Beijing has rejected attempts to resolve the disputes with multilateral bodies such as ASEAN or the United Nations, instead preferring they be resolved through one-on-one talks.

Philippines Says China Reclaiming Land in Disputed South China Sea