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Vietnam: Southeast Asian Cornerstone of China's Regional Cooperation Vision
Abstract
This case analyzes Vietnam's role as a core Southeast Asian hub in advancing China's Belt and Road Initiative, highlighting dense economic, financial, energy, developmental, and cultural linkages alongside persistent structural tensions. It shows how a “China supplies–Vietnam processes–global exports” model, reinforced by CAFTA, RCEP, industrial parks, and major infrastructure and energy projects, has created deep interdependence supported by policy loans, multilateral finance, and expanding local-currency use. At the same time, the study underscores enduring challenges—South China Sea disputes, a large Chinese trade surplus, industrial competition, governance and border-security problems—and evaluates how both sides use institutionalized dialogues, green and digital cooperation, and people-to-people exchanges to manage frictions while promoting a “shared future” narrative.
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