Jeremy Grant
From the article: "'You know, a Chinese suit may not be as good as a Vietnamese one, but I can buy a Chinese one for half the price.'
With Chinese president Xi Jinping on his first visit to Vietnam in seven years, there are expectations that the two countries will upgrade the rail link that straddles their shared northern border. As the Financial Times Vietnam Correspondent, I reported from a dusty border train station in February 1996 on the re-opening of the rail link, severed in 1979 when China and Vietnam fought a brief but bloody border war.
Now, as then, economics was the driver -- as the above quote, from an official at a textile mill in northern Vietnam, indicates. In 1996, Vietnam was concerned by the threat posed by China's growing manufacturing might, sensing that commercial engagement would help stabilise the relationship.
Now, with China-Vietnam bilateral trade at record levels - even as on the investment side many companies are decoupling supply chains from China and shifting production to Vietnam - money is still talking.
The question is, which side will benefit more? The quote from the anonymous diplomat at the end of the article could well still apply, I think: 'The Chinese have come to seek business opportunities. It's certainly more in China's interest. The Chinese don't feel they owe the Vietnamese anything.'"
#China #Vietnam