Vietnam: A key player of USA's Indo-Pacific Strategy

Relevance: GS2 -Bilateral, Regional and Global Groupings and agreements involving India

(Source:, The Hindu, 09/21/2023)

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Why in the news?

• The General Secretary of the Communist Party of Vietnam Central Committee, Nguyen Phu Trong, and the U.S. President, Joe Biden, met in Vietnam during Mr. Biden’s visit.
• As USA is actively playing a role in the Indo-Pacific region, this meet will start a new phase in the bilateral relationship between the two countries.
• The visit aims at expanding engagement for broader bilateral cooperation, deeper institutional ties, and more extensive and innovative political, diplomatic, and economic engagement, including in support of the Indo-Pacific Economic Framework for Prosperity (IPEF).

Recent trends in US-Vietnam Relation

• In September 2023, the US President has visited the Vietnam and the key outcomes of the visit are as follows,
• Announcements were made about a new Semiconductor Partnership to Support Resilient Semiconductor Supply Chains for US Industry, Consumers, and Workers; Workforce Development Initiatives to Support Semiconductor Capacity in the US Developing Electronics & Leading Technology Advancement Partnerships (DELTA) Network.
• The Vietnam-US Science and Technology Agreement for Research was signed.
• Closer cooperation in education and skill development that includes STEM-focused education initiative
• They agreed to expand commerce in the aviation industry aimed at encouraging the travel and tourism industry.
• They also agreed to expand cooperation in the fields of climate, energy, environment, and health.
• The comprehensive strategic partnership will also enhance the collective security of the Indo-Pacific region- an important US objective.
• Both countries also agreed to collaborate on strategic port projects in southern Vietnam.

How Vietnam became a key asset for the USA for Indo-Pacific policy?

• The war between Russia-Ukraine has thrown new challenges for Vietnam as its weapons import from Russia, which is its largest defence supplier, has been hit by West­led sanctions.
• These limitations in the face of Vietnam’s resolve to modernise its military as it is facing continuous threat from China.
• China’s dramatic steps in 2014 to place oil rigs in Vietnam’s Exclusive Economic Zone and subsequent assertive posturing have tested its avowed policy to stay clear of great power politics in the region.
• Also China has been claiming its rights over Spratlys & Paracel Islands in South China Sea, which are also being claimed by Vietnam.
• So among this geopolitical instability, Washington senses an opportunity here and bolstering the defence and security relationship with Vietnam is a key piece of America’s grand strategy in the Indo­Pacific.
• So by taking this opportunity to enhance ties with Vietnam, the USA can acquire a stronghold in the Indo-Pacific region.

US efforts in Indo-Pacific region

• In May 2022, the Indo-Pacific Economic Framework for Prosperity (IPEF) was launched by the U.S., with Vietnam as a founding member along with 13 other countries to revive Washington’s economic dynamism in the Asia­Pacific.
• There are 5 Key aspects of USA’a Indo-Pacific Vision
  • FREE AND OPEN: free and open Indo-Pacific requires that governments can make their own choices and that shared domains are governed lawfully.
  • CONNECTED: The alliances, organisations, and rules that the United States and its partners have helped to build must be adapted.
  • PROSPEROUS: That fact requires investments to encourage innovation, strengthen economic competitiveness, produce good-paying jobs, rebuild supply chains, and expand economic opportunities for middle-class families: 1.5 billion people in the Indo-Pacific will join the global middle class this decade.
  • SECURE: The United States has maintained a strong and consistent defence presence necessary to support regional peace, security, stability, and prosperity.
  • RESILIENT: USA will build regional resilience to 21st-century transnational threats

Indo-Pacific Region

Why is it the area of concern and focus for the world?

• The Indian Ocean hosts some of the fastest growing economies in the world and connects these economies with both the Atlantic Ocean and the Asia-Pacific region, making the Indo-Pacific a region of tremendous geostrategic importance.
• China has been increasing its maritime presence and its ambitions in the region and beyond through various policies like Belt Road Initiative, forceful occupation in South China Sea, authoritative approach towards Taiwan, debt-trap diplomacy etc.
• This region has three strategic trade perspectives like the sea trade routes that connect the Middle East, Africa and east Asia with Europe and the US, over which the majority of the world's maritime oil trade and nearly one third of total worldwide trade passes.
• Along this route there are crucial passage points, which, if obstructed, could potentially bring the world economy to a standstill.

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FAQ

MCQs

Question: Which of the following statements is/are correct with reference to Indo-Pacific Economic Framework (IPEF)?

1. It is a Japan-led initiative that aims to strengthen economic partnership among participating countries.
2. India is also one of the participants of the initiative.

Choose the correct option using the codes given below:

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2