November 7, 2015.
Vietnam and China have found peace in the South China Sea after Chinese President Xi Jinping visited Vietnam. Despite conflicts in the South China Sea due to a US naval ship sailing in disputed waters, China and Vietnam have agreed to be at peace with one another. They both agreed to refrain from further complicating their disputes in the South China Sea where they have overlapping territory. Although China has made aggressive moves in the past like placing an oil rig in Vietnam waters, which was later removed, they are now both agreeing for further strategic coordination and cooperation. During Xi Jinping’s visit to Hanoi, both sides signed several documents regarding party-to-party exchanges, transportation, tourism, production capacity, culture, railway, energy, finance and local affairs. After discussing how to address the differences between the two countries, both sides agreed to launch a joint survey mission on the waters near the mouth of the Beibu Gulf in December. This may be the beginning for further maritime cooperation between these two nations.
Louie Nguyen, CFA is the CIO of San Diego-based Soledad Investment Management. Soledad invests qualified clients’ assets in markets around the world, including Vietnam.