Diplomatic relations between the United States and Vietnam have come a long way since the
two countries ended their 20 year war in 1975.
Formal relations have been reinstated, trade agreements signed, and in May 2016, the US
even agreed to lift a decades old embargo on arms trade.
So as the two countries shift from enemies to allies, we wanted to know, Just how powerful
is Vietnam?
Well, geographically, Vietnam is fairly small.
At 130 thousand square miles, the country is just larger than the US state of New Mexico.
But despite its size, it boasts a population of more than 90 million, making it the 14th
most populous country in the world.
As a long-time Communist state, Vietnam has been traditionally closed off to the West.
But over the last several decades, it has introduced a number of modern economic and
social reforms.
Since the mid-1980’s, the country has steadily moved away from a centrally-planned system
by encouraging private business and free trade.
In the 1990’s, it halted requests for compensation for war crimes from the US, and in turn, the
US partially lifted its trade embargo, which had decimated Vietnam’s economy.
This, coupled with aid from the World Bank and the International Monetary Fund, boosted
the country’s economy by roughly eight percent a year, and made it one of the world’s biggest
exporters of rice.
Today, Vietnam’s GDP is more than $180 billion dollars, compared with just $6 billion dollars
in 1990.
The country also benefits from its membership to the Association of Southeast Asian Nations
which fosters economic growth in the region.
Vietnam also is a key player in the Trans Pacific Partnership, or TPP, which is a proposed
free trade deal between the US and 11 other countries.
Vietnam is far from the largest market in the deal, and yet the country is slated to
benefit the most, with its GDP expected to surge by 10 percent before 2030.
What’s more, the deal may be an antidote for Vietnam’s weakening ties with its biggest
trade partner: China.
The US hopes that the TPP will eventually end Vietnam’s dependency on China for trade,
leaving them to revert to their second largest trade partner: the US.
And the US isn’t the only country with an interest in Vietnam.
Japan, Australia, Singapore and the Philippines have all recently strengthened defense ties,
with the goal of creating a counterweight to the growing threat of China.
The alliance is crucial to Vietnam, as the country has a limited defense budget and dated,
soviet-era equipment.
Vietnam does boast an army of roughly five-and-a-half-million, trumping many of its powerful neighbors, like
Japan and South Korea
In the US and abroad, it seems that all eyes are on Vietnam.
This newfound attention not only reflects the country’s undeniable potential, but
its transformation over the last few decades.
Although there is still room for improvement, particularly in human rights and the environment,
there’s no question that Vietnam is well on its way to becoming very, very powerful.
China and Vietnam has serious territorial disputes, but what would happen if tensions
led to an all out war?
Who would win between China and Vietnam?
Watch this video to learn more!
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