TRADE RELATIONS BETWEEN THE TONKINESE AND WESTERN TRADERS IN THE 17 TH CENTURY - Full 10 điểm

TRADE RELATIONS BETWEEN
THE TONKINESE AND WESTERN TRADERS IN THE 17th CENTURY

LE THI HOAI THANH
College of Education, Hue University

Abstract: With the strong growth of the Asian trading system along with the
intrinsic requirements, Tonkinese authorities established the trade relations
with not only Oriental countries but also with Western ones. In particular,
trade relations with Western traders (Portugal, Dutch, the UK and France)
are one of the important factors contributing to the rapid development of
foreign trade economy of the Tonkinese in the seventeenth century.

Keywords: Trade relations, Tonkinese, Western traders, the 17th century

1. INTRODUCTION

Foreign trade economy of the Tonkin has been the matter of interest of many domestic
and foreign scholars in finding out comprehensively the dimensions such as Le-Trinh
government’s policies on foreign trade, trade relations with foreign traders; the impacts
of foreign trade on the Tonkinese economy - society, in which trade relations between
Tonkinese and Western traders were also mentioned in the works of the researchers
Charles B. Maybon, Miki Sakuraba, Li Tana, Thanh The Vy, Nguyen Thua Hy, Hoang
Anh Tuan, etc. On the basis of the sources found, each author chose his own research
direction, in particular:
The work British commercial firm in Tonkin in the 17th century (1672-1697) of Charles
b. Maybon (1910) focused on exploiting and analyzing the stored materials written
about the British East India Company and the British traders in Pho Hien who later
moved to Thang Long (known as Ke Cho in Nôm-script) in the last three decades of the
seventeenth century. Additionally, in the work A modern history of the land
of Annam (1920), Charles B Maybon spent two chapters of the same title, "The

Europeans in the land of Annam" on the presence and activities of the missionaries,
traders in both the Tokin and the Cochinchine in the two centuries XVII - XVIII.

The work Foreign Trade of Vietnam in the seventeenth, the eighteenth and early
nineteenth centuries of Thanh The Vy (1961) mentioned the development and the
decline of Vietnam foreign trade from the seventeenth century to the early nineteenth
century, in which, the author devoted a section to talk about the imported and exported
commodities of Tonkin; trade rules of Tonkin government with Western traders.

The work Cochinchine: economic and social history in seventeenth and eighteen
century, Li Tana (1999) presented the economic and social history of Cochinchine.
However, in Chapter 3, entitled "The foreign traders," the author talked about the
benefits that Western traders had in the process of conducting trade with Tonkin
compared to those of Cochinchine.

Journal of Science and Education, College of Education, Hue University
ISSN 1859-1612, No. 01(37)/2016: pp. 5-15

6 LE THI HOAI THANH

The authors Nguyen Thua Hy, Hoang Anh Tuan with articles: Nguyễn Thừa Hỷ (2009),
“Những thương nhân Hà Lan đầu tiên đến Đàng Ngoài và Kẻ Chợ năm 1637”/ Nguyen
Thua Hy (2009), "The first Dutch traders arrived in Tonkin and Ke Cho in 1637",
Journal of Historical Studies, Vol. 4, p. 68-79; “Mạng lưới giao thương nội Á và bang
giao Hà Lan - Đại Việt (1601 - 1638)”/ Hoang Anh Tuan (2001), " Intra-Asia Network
of trade relations and Dutch - Vietnam relation (1601-1638)", Journal of Historical
Studies, Vol. 6, p. 22-35; Hồng Anh Tuấn (2005), “Cơng ty Đơng Ấn Hà Lan ở Đàng
Ngoài (1637-1700) tư liệu và những vấn đề nghiên cứu”/Hoang Anh Tuan (2005),
"Dutch East India Company in Tonkin (1637-1700): data and research issues", Journal
of Historical Studies, Vol. 3, p. 30-41, etc. The articles mainly referred to the trade

activities of the Dutch East India Company and the Dutch traders in Tonkin.

In addition, there are other articles focused on trade activities of East India Company,
such as Le Thanh Thuy (2009), "The formation of the British Empire in the East and the
role of British East India company in the XVII – XIX centuries", Journal of Southeast
Asian Studies, Vol. 1, p. 22-29 or Nguyen Manh Dung (2011) "Trade activities of the
French East India Company in the Great Viet (the second half of the seventeenth
century - the middle of the eighteenth century)", Vietnam to the sea Project, The Gioi
Publisher, p. 337-350.

Thus, the trade relation between Tonkinese and Western traders was looked out
individually rather than systematically and comprehensively. On the basis of inheriting
the previous resources and achievements of the scholars, we focus on trade relations
between Tonkinesee and all Western traders on dimensions such as the penetration of
Western traders to the Tonkinese market; import and export of goods between the sides;
activities of Western traders as well as the development and decline of the trade
relations to see a prosperous foreign trade of Tonkin in the seventeenth century.
Thereby, we draw the comments to see more clearly the nature, characteristics and the
role of the trade relations.

To conduct this research paper, we use the historical and logical methodologies. These are
the two most important methods of historical researches. Also, with the available resources,
we processed, analyzed, compared and systematized to solve the problem posed.

2. FINDINGS AND DISCUSSION

2.1. Trade relations between Tonkinese and Portuguese traders

Portugal is one of the European countries with early and strong maritime development
background in the world. The achievements made in the geographical discoveries led

Portugal to the East. With no exception, the Portuguese traders are the first Westerners
to Tonkin. After the capture of Goa (1510), Malacca (1511), the Portuguese established
official relations with Le-Trinh government on a trip to the Tonkin of the missionary
Juliano Baldinotti in 1626. However, trade activities of the Portuguese in Tonkin did not
take full potential as they can easily purchase a sufficient number of Chinese silk
needed for the Japanese market thanks to Macau commercial firm.

TRADE RELATIONS BETWEEN THE TONKINESE AND WESTERN TRADERS... 7

Unlike other Western traders, Portuguese traders did not to establish commercial firm in
Tonkin. This stems from the reason that "the Portuguese conducted trade as free
traders, independent from any administrative rules of a commercial company, so there
is no need to have a commercial firm to control activities as they proceed" [4, p. 41].
On the other hand, Portuguese traders also received great support from the Jesuit
missionaries in the process of conducting their trading activities. In some cases, the
missionaries became the brokers and interpreters for Portuguese traders; therefore, they
found no need to set up a commercial firm in Tonkin.

Trade period of Portuguese in Tonkin followed the monsoon operation. They usually
came during the Northeast monsoon and stayed here for trading until the South
monsoon next year. Portuguese often brought weapons, lead, copper, zinc and sulfur for
sell and purchase silk, sugar and types of incense. As any other Western traders, trading
activities of the Portuguese in Tonkin took place in the seventeenth century. Until
eighteen century, Portuguese traders basically had no access to Tonkin.

2.2. Trade relations between Tonkinese and Dutch traders

Along with other Western countries, the Dutch was also quickly penetrated trade system
of the Asia in order to search of markets and sources of raw materials. Not as the
forefront Portugese, the Dutch gradually rose predominate in this region in the

seventeenth century. March 20, 1602, the Dutch East India Company (Verenigde
Oostindische Compagnie: abbreviate for VOC) was established to conduct commercial /
trade activities in Oriental countries. By mid-seventeenth century, VOC basically
completed the process of building a network of trade and put into operation in an
effective way. In the first four decades of the seventeenth century, the Dutch quickly
built the trade relationship with Cochinchine. However, since the mid-30s of the
seventeenth century onwards, due to the amount of Chinese silk that Chinese traders
brought to Hoi An diminished by the economic slowdown in China. On the other hand,
in this period, Japanese implemented "sakoku" policy, which banned Japanese traders to
go abroad for trading. This means that Japan lost its position in trade in East Asia and is
an opportunity for the Portugese and Dutch traders to replace the position of Japan in
some central Mall in Southeast Asia, including Tonkin. At the same time, with the
shortage of silk from Cochinchine and the fact that Tonkin silk market started to
dominate the Japanese market, VOC found Tonkin could become the major supplier of
silk. These factors had a major impact on the trade thinking of VOC. Therefore, VOC
decided to change the strategy in the Great Vietnamese trade, abandoning the
Cochichine and redirecting to the Tonkin.

In 1637, Grol Ship commander, Karel Hartsinck came from the city of Hirado (Japan) to
Tonkin to put trade relations. During this trip, Grol ship carried a cargo volume worth
more than 186,000 florins. These goods are transported to Tonkin includes a few items
from Europe and Japan, but mainly copper and iron. [2, p. 69]. For Tonkinese
authorities, besides trade relations, the warm welcoming to the Dutch traders also aims
to invite the Dutch to participate he military coalition, or at least facilitate Lord Trinh to

8 LE THI HOAI THANH

collect and purchase weapons for the War of Trinh - Nguyen. Therefore, even when the
Grol ship was just docked at the River door, Lord Trinh had to assign people to send a
letter to the Dutch with the content: "His majesty was pleased that the Dutch arrived.

The deputies were elected to lead the Dutch and cargo on to the court. This time we did
not search the ship as usual, but the king wanted that they must give an accurate list of
all the items contained in the vessel, without hiding anything "[2, p . 76]. In fact, the
Dutch traders were given trade privileges than other foreign traders by Le-Trinh
government. From 1637 onwards, annual VOC ships turned to Tonkin to conduct trade.

To better serve the business plan as well as a trading office, storage of goods, the Dutch
traders were by the Tokinese authorities allowed to establish the commercial firm in Pho
Hien. And then this commercial firm was transferred to Thang Long in 1645. The
introduction of the firm tied to the role of directors since Karel Hartsinck to Jacob van Loo
brought an important contribution to the success of Dutch East India company in commercial
operation in Tonkin. Commercial activities of the VOC concentrated in the purchase of
merchandise for export to countries, such as silk, ceramics (for Japan); cinnamon, musk (for
The Dutch, Europe), gold (for Coromandel), in which major items were silk and ceramics. In
contrast, VOC imported silver in bars, Japanese ceramics to Tonkin.

For the silk trade: in 1637, the Dutch found that Tonkin Silk the year before cost an
average of 45 ounces/picul while those of Cochinchine ranged from 100-130
ounces/picul . Attracted by the cheap price of silk, the Portuguese in Macau dispatched
three ships to Tonkin to purchase silk. This activity pushed the average price of silk to
60 ounces/picul. Thus, even in the first trip to the Tonkin, the Dutch traders bought
536.95 piculs ecrus and 9665 tons of silk, totaling 190,000 guilders. Silk shipments
gained 80% rate in Japan. [6, p. 31]. Silk trade activities between the Tonkin and VOC
can be divided into 3 phases as follows: 1637-1654, 1655-1669 and 1670 - 1700. In the
first phase, VOC purchased a large amount of Tonkinese silk for exporting to the
Japanese market. If before 1641, Tonkinese silk in Japan accounted for 37% (63% as
Chinese silk), then from 1641 to 1654, Tonkin silk in Japan accounted for 68%
(Chinese silk: 13% and Bengal silk: 19%). In this flourishing period (1637 - 1654), the
total value of silk exports to Japan of VOC was up to 4.662 million florins
(approximately 1,635,789 ounces of silver in bars), averaging 260,000 florins/year [1, p.

11]. The difference between the buying price and the selling price of Tonkinese silk
brought huge profits for VOC in18 years, particularly the years from 1641 to 1654
which is considered the "golden age not only with the cheap purchase of silk but with
the sale of silk in Japan for profit. VOC often obtained to 250% or more in this
business" [3, p. 110]. Into the second period, the rate of importing silk of VOC from
Tonkin to Japan began to decline, with only 17% as the Bengal silk was preferred. Since
1670, the skill sale and purchase in Tonkin declined sharply. Therefore, VOC forced to
change its strategy towards dropping the amount of skill purchased to Japanese buyers
and boosting exports of products such as silks to the European market.

TRADE RELATIONS BETWEEN THE TONKINESE AND WESTERN TRADERS... 9

For commercial ceramics: 1660s and 1670 were periods of strong development of
import activity of Tonkin ceramics of VOC. This phenomenon is explained by the
following reasons: First, the import of Japanese ceramics was reduced by VOC due to
the Japanese ceramics price increase. Secondly, Chinese ceramics exported to the
Southeast Asian market were disrupted by unstable political situation of the Qing
Dynasty. Thirdly, the difficulties in trade silk with Tonkin of VOC were revealed from
1660 [7, p. 362]. These causes motivated VOC to promote purchase activities of
ceramic products of Tonkin to export to Southeast Asia. With this decision, VOC
simultaneously achieved two important goals: profits and continuing to maintain trade
relations with Tonkin.

In the years 1663 - 1681, total Tonkin ceramic of VOC exported to the markets in
Southeast Asia islands was nearly 2 million specimens, representing approximately 41%
of total raw ceramics transported there [8, tr. 36]. The Tonkinese ceramic products
exported to the market were mainly household ceramics, in which cups, tea cups and
bowls accounted the most. However, Tonkinese ceramics did not maintain its position
in the long future. After achieving a leading position in the years 1669 - 1670, the
number of Tonkin pottery and ceramic started descending. Especially after 1681, VOC

imported Tonkinese ceramics infrequently and insignificantly.

Besides importing Tonkinese ceramics, the Dutch traders also imported Japanese
ceramics into Tonkin when Japanese was implementing "sakoku" policy. According to
VOC materials, in the 1650 - 1679 period, VOC directly exported Japanese goods such
as porcelain bowl, plates, porcelain vase, small teapot, salt jar with the number up to 13
850 specimens into Tonkin [5, p. 88]. Along with ceramics directly exporting activities
from the port of Nagasaki to Tonkin, in the years 1672 - 1680, 3,312 Japanese ceramics
template was also put into Tonkin indirectly by VOC: through Batavia. [5, p. 90]

Since last three decades of the seventeenth century, the VOC’s trade in Tonkin was
moderated as the Dutch traders did not want to completely abandon commercial activity
there. However, by the late seventeenth century, VOC found that they could not
continue to maintain commercial activity in Tonkin as the decline in profits. Therefore,
in early eighteenth century, VOC formally withdrew from Tonkin, terminated
commercial activities with Le-Trinh government after more than six decades of working
together.

2.3. Trade relations between Tonkinese and British traders

In 1600, East India Company (English East India Company, abbreviate as EIC) was
established. According to the decision of Queen Elizabeth I, the company organized
trips to the East India for trading and were allowed to monopolize trading in the area
between the Cape Horn and the Strait of Magellan. In the Orient, Bantam (Indonesia)
became the center of British trade. Until the first half of the seventeenth, the British by
turn set the political and economic establishments in Hirado (Japan), Calcutta, Madras
(India) and Taiwan.

10 LE THI HOAI THANH

For Great Viet, EIC noticed the transshipment location of Tonkin in Asian trade system,
between the two major markets: China and Japan. Therefore, EIC board of leaders set
out a trade strategy. The main content of the strategy is to establish a new business
model through commercial firm in Taiwan, Japan and Cochinchine. According to
calculations by EIC, Tonkinese can provide silk, untanned skin, sugar to Japan, Taiwan;
Japan also offers silver, commodities which can later reinvest goods to Japan. On the
other hand, EIC also wanted to turn Tonkin to become the consuming market British
industry products. To achieve this goal, the three ships Experiment, Return, Zant were
dispatched to Taiwan, Japan and Cochinchine at the most favorable monsoon. Zant ship
under the command of William Gyfford went at the end of May and arrived at
Tonkinese river door on June 25, 1672. W.Gyfford carried a letter of the Bantam
Council sending to "powerful and great Emperor of Tokinese, with a long-life and
winning wishes ". The letter showed tremendous goodwill of our His Majesty against
the Dutch, Portuguese, Chinese, as well as all foreigners and expressed the wish: "Great
Britain His Majesty had ordered the esteemed India company to ask your Emperor to
give the British the original grace and trust as people in a house, for them to be allowed
to live and trade freely" [4, p. 43]. However, W. Gyfford did not submit the letter to the
Lords Le and Trinh as he arrived because that time, Lord Le Gia Tong and Lord Trinh
Tac battled the Nguyen Lords in Cochinchine. Therefore, not until next year (March 14,
1673), he was to get the audience to Lord Trinh. During this meeting, W. Gyfford
offered the gifts to Lord Trinh, submitted the letter from Bantam Council and asked the
Le-Trinh government for the British permission to perform trade activities in Tonkin.

With the consent of the Le-Trinh authorities, the British established commercial firm in
Pho Hien. At Pho Hien, the British were provided a house to the selling transactions,
but they refused because this house was located very far from the waterfront. This will
make it difficult for the trade. So, they moved to a rented house of a Portuguese woman
and this became the official headquarters of the British commercial firm in Tonkin. For
greater efficiency in trading, British traders put efforts to obtain Le-Trinh court
permission to establish commercial firm in Thang Long. Until 1683, British traders

achieved their aspirations. The cause of the hesitation in allowing foreign traders,
including British commercial firm establishment in the capital of Thang Long is Le-
Trinh government’s concerns about national security issues. It was Samuel Baron - who
worked for the EIC realizes: "if free trade is extended to foreigners in the country, then
this country also makes a lot more profit. But God did not want the European to know
its border width to avoid being hit in that dimension, so he will and never prevent this
freedom" [9, p. 48]. The commercial firm in Thang Long was described in detail under
the gaze of William Dampier when he arrived at Tonkin in 1688: "Commercial firm of
the British did not have so many people, peacefully situated in the north of the city and
located outwards the river. This is a low, beautiful house and is the most beautiful
house I have seen in the city. In the center there is a lovely dining room and at the side
is the comfortable room for traders, employees and servants of the firm. This house was
built parallel to the river, in each gablem; there were smaller houses with different uses

TRADE RELATIONS BETWEEN THE TONKINESE AND WESTERN TRADERS... 11

such as kitchen, warehouse... to stand in a long line from the main house to the river,
creating two wings and a square yard to look toward the river. In the yard behind the
waterfront, there was a flagpole with British flag as we have to use the flag in Sunday
and British holidays" [1, p. 67].

In the first years, the British traders operated efficiently and profitably to the EIC. The
British ship from Bantam, Taiwan, Japan came to Tonkin steadily. British traders often
brought to the Tonkin items such as silver, sulfur, copper, gunpowder, lead, big guns,
including elongated rifles as the preferred type, large fabrics, flowered silks and brought
silks, ceramics, sugar, musk, painted furniture sheaves.

Silk is the main item of EIC and is the most popular one in the Tonkinese market. The
British especially likes kinds of flowered or blank pots with large size. Following silk,
EIC conducted many ceramics collection. To make a profit, traders chose the method to

buy cheaply popular ceramics (such as Bat Trang brown ceramic bowl) in bulk for
reselling to the local authorities in Southeast Asia (Indonesia, Myanmar, etc.) and India.
For example, in 1688, Captain Pool bought in Ke Cho 100,000 bowls and brought to
Sumatra for sell. In 1693, British commercial firm in Ke Cho bought 50,000 ceramic
cups in Tonkin and brought to India.

However, compared to the Japanese, Chinese and Dutch traders, English traders faced
more difficulties in trade in Tonkin. The EIC objectives were set out when establishing
relations with Tonkin as in the original plan of the Bantam Council did not reach. Silver
mining from the Japanese market to reinvest capital for commercial activities in Tonkin
and the export of silk to Japan in Tonkin did not become a reality as EIC was denied in
the re-establishment of the trade with Tokugawa government in September 1673.
Failure in Japan led to a direct result of trade relations with Tonkin, which put the
commercial firm into a difficult situation because the goods purchased were not taken
and there was no consumer market. Still, traders in the firm in Tonkin remained
maintained by the Board of Directors in London as the Board of Directors found Tonkin
was still capable of providing products such as musk, silk for the European market.
Therefore, as decided by the Board of Directors in London, Bantam Council urged
employees of Commercial firm in Tonkin promoting the sale of goods from Britain and
purchase silk items and local products in Tonkin that the company requested. However,
the results obtained in the trade relations did not desire much. These investments in silks
in Tonkin for the European market were not successfully received due to the fierce
competition of the Chinese traders. Meanwhile, the products of British industry were
very hard to get the market in Tonkin, except for weapons sold to the government in
Tonkin. Items such as fabrics were too expensive for the Tonkinese market. Even in the
first shipment of Zant on June 1672, the entire fabric was sent to Taiwan in August
because of the "unmarketable". These events led to the fact that EIC could not maintain
the balance of trade.

Besides the above disadvantages, EIC also faced problems in communicating with local

officials, especially officials in charge of goods checking up and tax examinations. As

12 LE THI HOAI THANH

well as other foreign traders, British ones must declare goods, personnel and list of gifts
for the Lord and the prince whenever the ships arrived at Tonkin. With that, officials
demanded more lobbies ... On the other hand, in the course of trade, British traders also
saw the injustice of the Tonkinese government to them: "The greed of the authorities
led to unfair trial has been the subject of complaining of traders... the old debt [the
money to buy goods or in-advance cash of Tonkin officials] was no way to be paid back
and what officials unusually brought, in rare cases will be paid. It is impossible to
directly meet the Lord to complain about this behavior without meeting the concubines,
and this is the origin of severe abuses of the currency" [4, p. 45]. This made the British
more and more depressed. Until the late seventeenth century, when the Chinese market
was opened along with the difficulties, losses in commercial operation in Tonkin, EIC
decided to close the commercial firm in Thang Long in 1697. From there until 1720, a
few British trader ships came to Tonkin but commercial activity was not significant
anymore.

2.4. Trade relations between Tonkinese and French traders

Under the reign of Louis XIV (1643 - 1715), in parallel with promoting missionary
activities, France also had very positive economic development. After Jean-Baptiste
Colbert became finance minister in 1665, he strengthened the establishment of
commercial companies. Besides commercial activities had been carried out in the
Americas, Orient attracted French capitalist’s investment to expand the market and
search for raw materials. On that basis, based on the model of the East India Company,
the Dutch, the French East India Company (Compagnie Franỗaise des Indes Orientales,
abbreviate as CIO) was founded in 1664. Since then, CIO’s commercial firm was set in
Surate (1668), Pondicherry (1674). Thus, until the mid-seventeenth century, the strong

development of the international trade system connected the Asia - Europe regions and
French began to pay more attention to the Far East, including Great Viet.

In 1669, a merchant ship commanded by Captain Junet departured from Siam to
Tonkin, accompanied Captain Junet, there also were missionaries Lambert de la Motte,
Bourges and Bouchard. When arriving at Tonkin, traders and missionaries of France
were respectfully received. They stayed until February 1670 in Tonkin. In 1671, CIO
sent a ship to Tonkin, but did not set out a specific plan. Until August 1674, employees
of the CIO brought goods worth 12,000 francs to meet Lord Le Gia Tong. But on his
way to Tonkin, CIO ships clashed with Dutch ship and then faced the storm. The ship
drifted into the Philippines. Thus, from 1669 until 1674, the French effort in
establishing trade relations with Tonkin did not reach. In 1680, the ship "Tonquin"
commanded by Captain Boitou came to Tonkin. During this trip, the CIO appointed
trader Chappelain to carry reaux of 3000, two letters to submit to the king along with
some gifts as mirrors, crystal chandeliers, gold and silver. This time, CIO was allowed
to establish commercial firm by Tonkinese government in Pho Hien.

In trade relations with Tonkin, French traders often sold items such as weapons:
including cannons, sulfur; European silk: French smooth ones with colors such as dark

TRADE RELATIONS BETWEEN THE TONKINESE AND WESTERN TRADERS... 13

red and dark green; reaux silver coins; pepper; Indian cotton fabrics, including coarse
white cloth, painted or printed pattern, yarn dyed fabrics; sandalwood. In contrast,
French traders conducted commercial purchase of the Tonkin outstanding items such as
silk, musk, gold.

However, the activity of French traders in Tonkin took place within 2 years. After 1682,
there was no longer a CIO trader yet to be sent to Tonkin. Especially from 1684
onwards, when China opened a trading port for the West along with the deterioration of

the trade in Tonkin in the late seventeenth century, French traders tended to look to the
Chinese market\and moved the direction to Cochinchine.

Based on the study of trade relations between Tonkin and Portuguese traders, Dutch,
English, French, we draw the following remarks:

- In trade relations with Tonkin, Western traders asked Le-Trinh governments to
establish the commercial firm (except for Portugese traders). General characteristics of
the firm is to be born, worked within the seventeenth century and was built in the large
cities, large commercial ports such as Thang Long, Pho Hien. The existence of the firm
helped Western traders to have more advantages in trade. And this is a new definition of
Tonkinese foreign trade.

- Trade relations between Tonkin and Western traders in the seventeenth century turned
the natural products and handicraft items of Tonkin into highly valuable commodity in
the regional markets, marking the development of foreign trade economy of Tonkin. In
contrast, the commercial items that Western traders brought to Tonkin met the needs of
Le- Trinh governments.

- For western traders, buying goods from Tonkin collected more profits than the sale of
goods to Tonkin by the fact that commodities which traders brought here were mostly
just for the Lords and kings and their officials, as a Dutch trader confirmed during his
trade: "goods brought to Tonkin gained losses ... Gains were in shipments" [9, tr.106].

- Trade relations between Tonkin and Western traders had economic - social impacts on
the Tonkinese. Commodity economy was expanded and developed to a higher level. At
the same time, this trade hub helped bring to the birth, flourishing of urban cities,
marketing port (Thang Long, Pho Hien, Domea) as well as promoted cultural exchanges
between the Orient and the West. On the other hand, the presence of Western traders in
Tonkin affected the local people lifestyle, modes of production and trading of various

social strata, especially traders and craftsmen.

- Trade relations between Tonkin and Western traders took place in the seventeenth
century, at least until 1700 (the beginning of the eighteenth century), the Dutch traders
decided to close the commercial firm which ended the relationship with Tonkin. This
can be explained by the following main reasons: Firstly, due to the limitations of feudal
production, Le - Trinh government administration was not able to meet the increasing
demands on product quality of goods for the capitalism countries, which are countries
with higher production development. On the other hand, the Le - Trinh government’s

14 LE THI HOAI THANH

monopolized foreign trade; all rules must be conducted in accordance with the will of
the Lords. Therefore, the way to trade with traders was sometimes anonymously
arbitrary, inconsistent and inequitable. In addition, the state's harassment by officials
caused many difficulties for traders while trading in Tonkin. Second, the establishment
of trade relations with Western traders did not come from the general requirements of
the economy, but separately from the interests of the government, such as weapons of
war from Trinh - Nguyen or on demand supplies for the royal family. Thus, when the
Trinh - Nguyen war ended, the government did not need to buy weapons anymore,
leading to the downfall of this trade relationship. Thirdly, until 1684, the Qing Dynasty
abolished the banning marine policy. Chinese market was opened up to attract traders to
trade in the West. And once commercial operations were not profitable enough with the
obstacles in the way of trade, the Western traders left Tonkin and looked to other
markets to meet their goals.

4. CONCLUSION

The establishment of trade relations between Tonkin and Western traders is a clear proof
of the "open doors" policy and the active joining to the Asian trade system of Le-Trinh

government. Trade relations contributed to the prosperity of the trade economy of Tonkin.
For the Westerners, each had a separate business methods but they all achieved
profitability through commercial activities of traders in Tonkin. Thus, along with other
countries in Asia, the trade relations between Tonkin and Western traders met the
objectives of the parties, and this is one of the vivid expression of the integration process,
economic exchanges between the Orient and the West in the seventeenth century.

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TRADE RELATIONS BETWEEN THE TONKINESE AND WESTERN TRADERS... 15

[8] Hoang Anh Tuan (2005). Dutch East India Company in Tonkin (1637-1700): data and
research issues, Journal of Historical Studies, Vol. 3, p. 30-41.

[9] Thanh The Vy (1961). Foreign Trade of Vietnam in the seventeenth, the eighteenth
and early nineteenth centuries, History Studies Publisher, Ha Noi.

LE THI HOAI THANH, M.A
Department of History, College of Education, Hue University
Tel: 0913 540 607, Email:

(Received: 06/01/2016; Revised: 11/4/2016; Accepted: 10/5/2016)