With the long-running maritime dispute between China and Vietnam threatening to boil over once again, Nguyen Tan Dung, Vietnam’s prime minister, warned last month that his country would “resolutely fight activities that infringe our sovereignty”.
However, Vietnam’s reaction to perceived Chinese aggression in the South China Sea is likely to be tempered by the fact that Beijing is increasingly driving Vietnam’s economy. As Vietnam faces another year of debilitating power cuts and the government battles against severe financial headwinds, China is stepping into the breach.
With Vietnam unable to produce enough power to meet demand, which is increasing by about 15 per cent a year, its northern provinces import electricity from China – 6 per cent of the country’s total supply according to Electricity of Vietnam, the state power monopoly.