Summary of doctoral dissertation epublic of korea vietnam strategic cooperative partnership and the way forward in the new context of global governance change in the 21st century

DIPLOMATIC ACADEMY OF VIETNAM


PARK NOH WAN

REPUBLIC OF KOREA-VIETNAM STRATEGIC
COOPERATIVE PARTNERSHIP AND THE WAY
FORWARD IN THE NEW CONTEXT OF GLOBAL
GOVERNANCE CHANGE IN THE 21
ST
CENTURY


Major: INTERNATIONAL RELATIONS
Code : 62 31 0206

SUMMARY OF DOCTORAL DISSERTATION



HANOI – 2014
MINISTRY OF EDUCATION
AND TRAINING
MINISTRY OF
FOREIGN AFFAIRS

Công trình được hoàn thành tại Học viện Ngoại giao



Người hướng dẫn khoa học:
PGS. TS. Nguyễn Thái Yên Hương





Phản biện 1:




Phản biện 2:




Phản biện 3:





Luận án được bảo vệ trước Hội đồng chấm luận án cấp Học
viện họp tại Học viện Ngoại giao
vào hồi giờ ngày tháng năm 2014

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PREFACE
1. Background of the research
Since the end of the Cold War in 1991, the global order and global
governance have been changing rapidly. The world is now in the process of an
unprecedented transition period. Many experts predict that the future world
may shift into the “G-2 (US and China) Era” or “Energy- Climate Era.”
Likewise, in the post-Cold War period, the world changed remarkably
with rapid globalization. Globalization has played a pivotal role in
increasing the total world GDP as well as in facilitating relationships among
countries. The world has become unified, and its system has also rapidly
changed. Together with a rapid leap in economic growth in the emerging
countries such as the BRICS (Brazil, Russia, India, China and Republic of
South Africa), the global order and the international system are being newly
reshaped and restructured. In the 21
st
century, relationship adjustments
among powers will be one of the main issues in world politics. This
transition can be summarized under the following three points: i) structural
change in socialist systems, ii) shifts in world power politics, and iii)
changes in global actors‟ behavior.
In this complicated environment, the global governance change has
decisively, and in every aspect, influenced the development of ROK and
Vietnam relations. Around the middle of the 1980s, ROK and Vietnam
were under pressure to reshape and rejuvenate their foreign policies to
swiftly adapt to the changing global order. ROK and Vietnam responded to
the reshaped structure in the world order in a timely manner, proclaiming
more reform oriented and opened foreign policies to enhance their national

interests in the 21
st
century. This contributed to help establishing diplomatic
normalization between the two countries in 1992, and developing the
current astonishing achievements of the bilateral relationship over just
twenty years.
With the global governance change, both ROK and Vietnam need to
draw up a new strategic cooperative framework and search for a new


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cooperative model. Therefore it is of great significance to conduct research
on the two countries‟ foreign policy responses to global governance change
and their recent relations in all sectors, and to consider how both countries
might seek out cooperative ways forward in the medium and long term
periods in the 21
st
century.
2. Literature Review
There have been many books, articles and research papers analyzing
“global governance”. “Global governance” is a rather vague and broad term,
difficult to define. The Commission on Global Governance

defines its
subject very generally as “the sum of the many ways in which individuals
and institutions, public and private, manage their common affairs. It is a
continuing process through which conflicting or diverse interests may be
accommodated and cooperative action taken”. However, the meaning of the
term varies depending on the person employing it or the circumstances in
which it is used. The term does not have a precise definition because there

is really no general consensus about its meaning.
Generally, “Global governance” is a useful concept as a descriptive tool
for international cooperation; however, it has its limitations as an analytic
framework to explain the cause and effect relationship between cooperation
and conflict. Authors like James Rosenau have also used “Governance” to
denote the regulation of interdependent relations in the absence of an
overarching political authority, such as in the international system. From a
slightly different perspective Robert Gilpin proposes Hegemonic Stability
Theory (HST), arguing that the international system is more likely to
remain stable when a single nation-state is the dominant world power,
maintaining a hegemony.
Regarding the global governance mechanism after the end of the Cold
War, there are a number of views. Joseph Nye considers that the various
and complex transnational connections and interdependencies between
states and societies have been increasing, while the use of military force and
power balancing is decreasing, although it still remains important. The


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article by James Petras entitled “China: Rise, Fall, and Re-emergence as a
Global Power” proposes a different view: China will replace the United
States to become a leading world economic power over the next decade.
However, China has seriously lagged behind the United States and Europe
in building an aggressive war-making capacity. Nevertheless, the leadership
in regulating world order is gradually shifting to the emerging countries.
The article in the Financial Times entitled “The End of US hegemony:
Legacy of 9/11” argues that while the United States still possesses
overwhelming power, it no longer plays the role of hegemon.
Regarding the reform of the United Nations, Thomas G Weiss, David P
Fasythe and Roger A Coate in “The United Nations and Changing World

Politics” take up three key issues: international peace and security; human
rights and the growing influence of non-state actors; and sustainable
development/eco-development. However, this work cannot provide a clear-
cut answer to the main issues which the UN is now facing. The key issue of
the UN is how to reform the Security Council. With accelerated
globalization, unprecedented global issues have arisen. A number of books,
journals, articles dealing with global issues such as climate change, poverty,
terrorism, and human rights, are now being published. Among them are the
“UN International Panel Convention Climate Change (IPCCC) Report” and
the “Stern Review on the Economics of Climate Change” by Nicholas Stern.
However, there are many conceivable ways to address such global issues.
Regarding the ROK-Vietnam Strategic Cooperative Partnership and its
prospects in the context of global governance change, the article by Do Hai
Nam, Ngo Xuan Binh and Sung-Yeul Koo in “Economic Cooperation
between Vietnam and the Republic of Korea in the East Asian Integration”
notes that while relations between ROK and Vietnam were inaugurated
during the second half of the 1980s, the ties remained limited to commercial
trade. Around that time, ROK and Vietnam proclaimed new foreign policies
to respond to the rapid changing in international environment. ROK opened
its “Northern Diplomacy,” while Vietnam adopted “Doi Moi (Reform and


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Open Door Policy)” in 1986. These two diplomatic policies provided the
greatest impulse to strengthen ROK-Vietnam relations and bring them to
their present state. In this regard, Alexander Lam Vuving‟s “The Shaping of
Foreign Policy: Vietnamese Grand Strategy after the Cold War” sheds light
on the reconstruction of Vietnamese diplomacy in the new world order.
Charles K Amstrong‟s article entitled “South Korea‟s Northern Policy”
examines the ROK‟s response, focusing on the importance attached to

dialogue and lessening tensions with North Korea and its communist allies.
Since the establishment of diplomatic relations between ROK and
Vietnam in 1992, numerous studies of bilateral ties have been published.
Most focus on the development of economic and cultural but not political
relations. The article entitled “Vietnam-Korea Strategic Cooperative
Partnership” in The World and Vietnam magazine and the study by Do Hai
Nam, Ngo Xuan Binh and Sung Yeul Koo in “Economic Cooperation
between Vietnam and the Republic of Korea in the East Asian Integration”
both present new insights into the remarkable development of ROK-
Vietnam relations over the last 20 years. These publications argue the
unprecedented development has occurred because both countries lie
geographically in the “East Asian cultural region”, with its salient
characteristics of patriotism, intelligence and skill, passion for study and
industriousness in work. It was against this background that the two
countries‟ relations were upgraded to “Strategic Cooperative Partnership”
in 2009 from the “Comprehensive Cooperative Partnership” in 2001.
However, there have been very few books which attempt to examine
“comprehensively Vietnam –ROK strategic cooperative relations and their
future direction” in the context of global governance change in the 21
st

century. Ngo Xuan Binh‟s book entitled “The Relationship between
Vietnam and South Korea in the New International Context” suggests new
ideas on upgrading the bilateral relationship to “Strategic Cooperative
Partnership” in the 21
st
century. However, the book fails to put forward
more detailed strategic directions in response to the shifting pattern of

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recent world governance, and also does not clarify the fundamental
principles, global and regional, on which a comprehensive 21st century
“strategic cooperative partnership” should be based.
3. The objectives and tasks of the research
The dissertation focuses on solving the following tasks:
1) Studying the importance of the changing process and characteristics
of global governance mechanisms in contemporary world history
2) Finding possible ways of defining international/regional/bilateral
special events and situations by international political theory
3) Trying to clarify the implications of these developments and
approaches for the Asian region, especially ROK and Vietnam, and
analyzing possible ways forward for both countries as they respond to
bilateral issues that might arise in the future
4) Highlighting the role of ROK and Vietnam as facilitators or bridges
to resolve global and regional issues, while continuing to construct the more
cooperative relationships between the two nations
5) Showing realistic way for ROK and Vietnam to upgrade and
develop their relations in all sectors, including political and military
cooperation
6) Proposing some recommendations for a “ROK-Vietnam new mid
and long term strategic vision”, a new strategic cooperative model in the
years to come.
4. Scope of the research
The period covered by this study shall be limited to that extending from
the end of the Cold War in 1991 to 2020. The dissertation analyzes the
global governance structure that was formed after the Second World War in
1945. It then provides an overview of global and regional governance
changes and their recent characteristics from the end of the Cold War to the
present. It also analyzes the responses of ROK and Vietnam to the global

governance change during this period. The analysis of the strategic
cooperative partnership between ROK and Vietnam begins from 1992,


6
when the two countries established their diplomatic relations, and continues
to cover the following 30 years.
Regarding subject matter, the dissertation takes up the reshaping of
relations among major international actors, especially the United States and
China, along with international organizations such as UN, IMF, WB,
OECD, APEC, ASEM and ASEAN. It will also analyze power
redistribution trends among the great powers and examine their foreign
policies in the East Asia region. The dissertation pays particular attention to
the foreign policies of ROK and Vietnam in response to global governance
change from the middle of the 1980s to the present.
5. Research methods
The dissertation avoids technical discussion as much as possible,
focusing first on developing a narrative of the great changes in global order
and governance, and highlighting their distinguishing features and
implications. Subsequently, after the post Cold War, ROK and Vietnam
relations within this framework are discussed with reference, where
appropriate, to political economy and international relations theory.
Again, where appropriate, the author makes use of historical, logical,
statistical, comparative and mathematical approaches, time series analysis, and
so on. Additionally, the dialectic method is used to show the unity in the
policies and actions of the US in the world as well as in the East Asian region,
in order to explain how the US can politically affect regional politics.
6. The contribution of the dissertation
1) The dissertation is the first work done in Vietnam to provide in-
depth analysis on ROK-Vietnam relations in the context of global

governance change from the end of the Cold War to the present in a
complete and systematic manner.
2) The dissertation endeavors to analyze the advantages,
disadvantages and prospects for each field of bilateral cooperation, as well
as to propose various recommendations to enhance cooperative efficiency
in the coming years.


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3) The dissertation studies the bilateral relations between ROK and
Vietnam as well as the relations of the two countries with China, the United
States and other international actors, which helps to deepen the readers‟
knowledge of international relations.
4) The dissertation provides reference material for the teaching and
studying of world history, global governance theory and international
relations, especially the relations between Vietnam and ROK, at universities,
colleges, institutes, and research centers.
5) The dissertation should be a useful reference source for foreign-
policy decision makers and planners on Vietnam‟s relations with ROK.
7. The structure of the dissertation
Apart from the Introduction, the Conclusion and the Appendix, the
dissertation will be organized in three chapters as follows:
i. Chapter 1 analyzes “Global Governance Changes and Their
Characteristics” (including its early form and the transition process)
ii. Chapter 2 describes policy responses of ROK and Vietnam to Global
and Regional Governance Change since 1991”
iii. Chapter 3 analyzes “Current ROK-Vietnam Bilateral Relations and
the Way Forward in the Context of Global and Regional Governance
Change in the 21
st

Century”.

CHAPTER 1: GLOBAL GOVERNANCE CHANGES AND THEIR
CHARACTERISTICS
1.1. Global Governance: Definition and Framework
1.1.1. Global Governance: Definition and Analytical Usefulness
The Commission on Global Governance defines its subject in general
terms as “the sum of the many ways in which individuals and institutions,
public and private, manage their common affairs”. Thomas G. Weiss,
Director of the Ralph Bunche Institute for International Studies at the
Graduate Center of the City University of New York, defines “global
governance” as “collective efforts to identify, understand or address world-


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wide problems that go beyond the capacity of individual States to solve.”
The concept of global governance remains vague but it is still a useful tool
for the analysis of international politics. In this dissertation, the author
prefers to use Thomas G. Weiss‟ definition.
1.1.2. Global Governance Transition and Its Structure
The site and scope of governance have changed over the past several
centuries. This changing pattern has been influenced by various factors such
as world wars and globalization. After the Second World War in 1945, the
United States and the U.S.S.R maintained high profiles in world politics.
However, another overlapping basic framework for maintaining
international order also existed, centering around the following
organizations: one main pillar was the United Nations, others were the
General Agreement on Tariffs and Trade, the International Monetary Fund
and the World Bank. The former contributed to set up political governance
system, the latter mainly played key roles to form economic governance

system. After the Middle East war in 1971, the economic strength of the
United States decreased and there were changes in the distribution of
economic power due to the comparative rise of some new emergent blocs and
countries such as EU and China. This global governance framework referred
to above existed continuously until the end of the Cold War in 1991.
1.2. Governance Structure Changes and Their Characteristics
1.2.1. Structural Change Background: The End of the Cold War
In 1991, the collapse of the Soviet Union not only precipitated changes
in global governance without any major war but also led to the collapse of
the socialist economic bloc. Most of the socialist countries integrated into
the Western economic system, embracing the principle “market economy
and democracy.” As a result, the world, with rapid globalization, gradually
became a more integrated one. The previous bipolar world order was
replaced by a brief Pax-Americana, a mono-hegemony centered on the
United States.


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Since the beginning of the 21
st
century, as a result of a rapid leap in
economic growth, newly emerging countries such as BRICS have appeared,
forming a strong political grouping, and gradually upgrading both their
economic power and their voice in the international community. These
trends have brought about a strong pressure for the re-adjustment of global
governance structure to take account of the changing relationship between
the emerging and advanced countries. In addition, challenging global issues
such as drugs, terrorism, poverty and climate change have become more
serious. These are difficult to solve effectively as each country remains
deeply attached to its sovereignty and right to address them autonomously.

Moreover, the recent global financial crisis triggered by the United States
and Europe has increased pressure for reshaping the global economic
governance system.
1.2.2. Characteristics of Recent Global Governance Change
1.2.2.1. Transition into Multi-Polar System: Declining US & Rising China
From the end of the World War II to the 1990s, the basic international
system was a bipolar system, the so-called “Cold War”, an ideological
competition system between the US and the USSR. In 1991, the collapse of
the former Soviet Union meant that the US remained as the sole superpower,
and the world shifted briefly to a mono-hegemonic system. Now the
leadership of the world order is gradually shifting to the emerging countries,
while the US, though it still possesses overwhelming power, no longer
occupies the role of hegemon. It is predicted that China will overtake the
US as the world‟s largest economy sometime around 2020.
As a result of a rapid leap in economic growth since the beginning of the
21
st
century, the newly emerging countries such as BRICS (Brazil, Russia,
India, China and South Africa) have expanded their influence and voice in
the international community, forming a strong political grouping. They
have also emerged as powerful growth drivers for the world economy.
1.2.2.2. Strengthening Regionalism: Expansion of Economic Blocks


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In the post-Cold War world, regionalism is emerging as a compromise
between nationalism and globalism in both geopolitics and geo-economics.
With the rapid progress in globalization and interdependence, the world is
getting narrower and also deepening global interdependence. Regional
cooperation has also been strengthened since the end of the Cold War. The

EU, NAFTA, APEC, ASEAN and MERCOSUR have emerged as the most
significant regional blocs in the world economic system. Nowadays, in the
context of a fierce competition between developed economies to promote
Free Trade Agreements (FTA), the region‟s economies are growing quickly.
In the future, a new FTA bloc will be formed around three axes, namely the
United States, Europe and Asia. Moreover, there have appeared many
regional and multinational economic entities to facilitate trade and
investment among nations. Recently, the “Doha Round” has been pushing
to strengthen and deepen the world trade order.
1.2.2.3. Global Issues and Limitation of the Roles of the UN and G8
Nowadays, there are many issues like drugs, terrorism, poverty and
climate climate change, which should be addressed urgently through
friendly cooperation and intensive policy coordination among international
actors. However, it is difficult to form a consensus among nations on these
questions as they touch upon sovereignty and self- determination.
Meanwhile, in addressing these global issues, the role and functions of
international organizations such as the UN and G8 have become much
weaker and they have been criticized for not acting in time. This is
especially true of urgent transnational issues which need a global response,
such as the recent financial crisis, climate change, hunger elimination and
poverty reduction.
1.3. Global Governance: Reshaping and Prospects
1.3.1. Possibility of Global Governance Reshaping
The global governance system faces a double-facet crises: one is
legitimacy, the other is effectiveness. "Legitimacy" means that the present
global governance system, created in the era of the “Rise of the West”,


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cannot respond to the widening political gaps between the existing global

structure and the newly changing realities of global power distribution
where the BRICs is emerging as a powerful political entity. At the same
time, "effectiveness" implies that the present global system cannot control
and manage the world peace and prosperity effectively. It is becoming
weaker as time goes on. The world is looking for a new global governance
architecture that includes both developed countries and emerging countries.
Various alternatives have been proposed by world leaders for a new basic
structure of world order and for measures to reform the existing global
governance. Recently, some possible ways for managing the
international monetary system effectively and stably have been
discussed in G-20.
1.3.2. Reshaping Prospects of Global Governance
With rapid globalization, the global governance has become unstable.
Financial crises have become recurrent, uncertainty haunts world markets.
These trends have given rise to strong pressures for the re-adjustment of
global governance structures to take account of the new relationship
between the emerging countries and the advanced countries. With their
growing economic power and position, the emerging economies centering
around the BRICS will try to reshape the existing governance regime,
which has been dominated by Western countries like the United States,
Japan and EU. It is also predicted that, with the rise of newly emergent
countries, the unilateral US hegemony in the world politics might be
loosened. The role of G-8 may also be weakened. Instead, G-20, which
includes the BRICS countries as its members, might take over the role
of controlling world economic order in its capacity as the highest level
multilateral economic organization. Moreover, within the existing
basic framework, the world order may move to a bipolar system – G2,
in which, the United States and China assume the key roles. Global
issues like drugs, terrorism, poverty and climate change are emerging.
There can also influence the reshaping of the global governance

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1.4. Regional Governance Change in East Asia
1.4.1. General Overview
The 21st century is considered the era of the East-Asia region. In fact,
the East Asia region has, since 1992, played a powerful role as an engine
for growth in the world economy. Over the past 20 years, in parallel with
the changes in global governance, East Asia has also experienced great
changes in regional governance.
1.4.2. Northeast Asia: Changes in Regional Cooperation
Since the 1990s, Northeast Asia has witnessed remarkable economic
development, despite the absence of a leader to resolve disputes, political
institutional differences and historical issues. However, the political
instability has been getting more serious recently due to North Korean
nuclear weapons development territorial disputes between China and Japan
and the reemergence of Japanese conservative revisionist ideology. At the
same time, Northeast Asia has been constantly upgrading its position and
influence in the international arena.
1.4.3. Southeast Asia: Changes in Regional Cooperation
Southeast Asia, in addition to being one of the most dynamic regions of
the world, is one of the most diverse. This diversity is manifest in its levels
of economic development and income, economic regimes and policy
challenges. Despite this diversity, several initiatives have been launched
towards integration in the region. Southeast Asia has since the 1990s played
the leading role in keeping regional peace and prosperity in the Asia-Pacific
region. In the security area, ASEAN established ASEAN Regional Forum
(ARF) in 1994 to discuss security issues in this region. ASEAN has also
made efforts to facilitate trade, investment and personal exchanges
throughout the Asia-Pacific region.

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CHAPTER 2
POLICY RESPONSES OF ROK AND VIETNAM TO GLOBAL AND
REGIONAL GOVERNANCE CHANGE SINCE 1991
2.1. Responses of ROK and Vietnam to Global Governance Change
2.1.1. Why was it necessary for ROK and Vietnam to Respond?
Currently, ROK and Vietnam are responding flexibly to global changes
and also improving their economic and political positions in the
international arena. Both nations experienced wars in the Cold War era and
began their economic growth with hardly any necessary infrastructure.
However they have registered significant achievements. On the other hand,
North Korea was unable to demonstrate the flexibility to cope with the
transformation of the global governance system and therefore became one
of the most backward countries in the world. Obviously, a “positive
response to global changes” is of great importance.
2.1.2. ROK’s Policy Responses
After the end of the World War II, ROK‟s regional diplomacy was
affected by the Cold War. To protect its national security and promote
economic development, ROK became one of the closest friends of the
United States during the Cold War era. With the dawn of the end of the
Cold War in the middle of the 1980s, ROK adopted a “Northern Policy.”
ROK has pursued strong alliance diplomacy with the United States on the
one hand, and, focusing on diplomatic normalization with the socialist
countries, balanced multilateral diplomacy on the other. ROK also has very

positively and smoothly responded to the changing global economic
governance. As a result, it is one of the few countries that managed the
transition from a rural, underdeveloped society to a modern economy in just
one generation.
2.1.3. Vietnam’s Policy Responses
After reunification in 1975, the top priority of Vietnamese diplomacy
was to maintain and protect its independence, sovereignty, unity and
territorial integrity. Thus, the Vietnamese government was forced to adopt


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economic and political reforms (Doi Moi), starting in 1986. Vietnam‟s
foreign policy became “more pragmatic, flexible and less ideological.” The
country continuously expands its international relations on the path of
multi-lateralization and diversification, as well as positively responds to
global governance change. As a result, it has achieved remarkable
development success over the last 25 years.
2.2. Responses of the ROK and Vietnam to Global Economic Crisis
2.2.1. Global Economic Crises and its Structural Trends
The global financial crisis and the following fiscal crisis have brought
about many changes in the global economy. First, the spread of the crisis
was faster and more intense than ever. Second, the issue of trust in
governments and markets has emerged. Third, there have been mixed hopes
and concerns about emerging markets, which have guided the recovery of
the global economy. Fourth, cautious introspection is rising against rapid
globalization. Only international cooperation can provide the world with
sufficient strength to overcome such crises.
2.2.2. Policy Responses of ROK and Vietnam
ROK succeeded in weathering the 1998 financial crisis and has turned
the global financial crisis in 2008 into preemptive response strategies for

the new global trading order. ROK is also relatively well connected to the
outside world. As a result, the country has registered remarkable
achievements in terms of economy and globalization rate. Meanwhile, as a
small, open, FDI-reliant and export-oriented economy, Vietnam was
unavoidably affected by the global financial crisis in late 2008. However,
the country has been quite successful in weathering the external shocks of
this crisis. Vietnam‟s government has acted swiftly to change its
macroeconomic policy to meet the new needs of the economy and achieved
some progress in restraining high inflation, stabilizing macro-economy and
keeping sustainable growth. Vietnam is believed to have very bright growth
prospects in the future.



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2.3. Responses of ROK and Vietnam to Regional Governance Change
2.3.1. Rising China and Regional Governance Change
Positively responding to the changing global order, China declared the
reform and open door policy in 1978. Since then, it has developed
remarkably in all fields. The rise of a wealthy and powerful China is now
changing the world dynamics. China is upgrading its strong position as an
economic, diplomatic and military power, and has become the second
largest economy in the world. With “the rise of China,” the existing East
Asian order is also compelled to reshape. Some authorities foresee a region
in which Chinese power supersedes that of the United States, resulting in
hegemonic transition – and possibly a conflict. At present, the United States
administration is rebalancing toward Asia in order to contain Chinese
influence there. Today, Asia-Pacific is a region where a bewildering array
of regional agreements are in place, with more anticipated over the next few
years. In this context, there is a need to fully grasp the current trends in the

rapidly developing relations and anticipate the direction which the region
should take in the years ahead.
2.3.2. Responses of ROK and Vietnam to Regional Governance Change
The most notable achievement in ROK‟s regional diplomacy was the
“Sunshine Policy” which prioritized engagement over confrontation and
containment in inter-Korean relations at the end of the 1990s. A more
recent initiative from the ROK has come in the form of its “new Asian
diplomacy” announced by the government in March 2009, representing an
ambitious bid to compete with China and Japan for regional influence.
ROK has often changed the emphasis of its foreign policy and positively
responded to the changing regional governance environment to advance its
national interests, which contributed considerably to the improvement of its
national status.
Vietnam has also been an active country in response to the regional
governance change since the end of Cold War. In 1989, Vietnam played a
critical role in the evolution of regional governance through its military


16
withdrawal from Cambodia. Vietnam built a new framework for regional
cooperation through ASEAN accession in 1995 and boosted multilateral
diplomacy based on its APEC accession in 1998. Recently, Vietnam is
actively engaging in international economic integration. Also, through its
participation in TPP negotiations in 2011 and promoting the signing of
FTAs with ROK, EU and Russia, Vietnam is actively responding to the
changing regionalism.

CHAPTER 3
ROK-VIETNAM BILATERAL RELATIONS: WAYS FORWARD IN
THE CONTEXT OF GLOBAL AND REGIONAL GOVERNANCE

CHANGE
3.1. Overview of ROK-Vietnam Bilateral Relations
3.1.1. ROK-Vietnam Bilateral Relations Before 1992
The roots of Korea-Vietnam relations date back some 800 years. ROK
and Vietnam were not able to create a cooperative relationship during the
Cold War era due to membership of their different ideological camps.
Relations between ROK and Vietnam began, unofficially and indirectly, in
the second half of the 1980s, but they remained limited to trade. ROK-
Vietnam diplomatic ties were established in 1992, which opened up a new
chapter in the history of relations between the two countries. They could
now look forward to the future and join hands to build good friendship and
sincere cooperation for mutual benefit and shared prosperity in the 21
st

century.
3.1.2. Development of ROK-Vietnam Relations since 1992
Since the establishment of diplomatic relations in 1992, ties between the
two countries have become increasingly constructive and forward-looking,
based on mutual trust. In 2009, the two countries upgraded to a “Strategic
Cooperative Partnership” from the 2001 “Comprehensive Cooperative
Partnership”. There has been a remarkable increase in bilateral trade and
investment in the last two decades. ROK has also been the second largest


17
Official Development Assistance (ODA) provider to Vietnam. Vietnam is a
major source for foreign labour for ROK. The recent ROK and Vietnam
relations are said to be “brotherhood” and even “in-law relationship”.
3.1.2.1. Politics and Foreign Affairs
In the political field, less than 20 years after the establishment of

diplomatic ties, the two countries upgraded the bilateral relations first to a
“Comprehensive Partnership in the 21
st
century” in August 2001 and then to
a “Strategic Cooperative Partnership” in October 2009. The frequent
exchange of visits and contact between the two countries‟ leaders has
become an established tradition. Both sides have established and
maintained many effective mechanisms of strategic political dialogue and
consultation to enhance mutual understanding and mutual trust. Nowadays,
the two countries have linked with each other at bilateral and multilateral
levels and in a diverse and vibrant manner. Both share strategic interests in
the peace, stability and prosperity of the region.
3.1.2.2. Economic Cooperation
Relations between ROK and Vietnam have continuously strengthened
with expanded trade and people-to-people exchange. During the last twenty
years, Vietnam has emerged as a strategic partner for ROK firms as well as
a major destination for ROK investment. In addition, there are
complementary relations between FDI and trade. The recent large inflow of
FDI from ROK into Vietnam can be regarded as a main source of the trade
expansion between the two countries. In short, FDI, trade, and ODA, which
are three key pillars to facilitate the present astonishing economic
development between the two countries
ROK is now Vietnam‟s second largest export market and Vietnam ranks
second among all labor exporters to ROK. Korean employers prefer
Vietnamese laborers due to their honesty, hard work and quick adaptability
to technology and Korean culture. However, illegal labor problems have
also reduced chances for many Vietnamese people to work in ROK. Both


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governments of the two countries should actively work on policies to
address these issues.
3.1.2.3. Development Cooperation (ODA)
Nowadays, ROK has successfully moved from being an aid recipient to
becoming an aid donor. Vietnam is one of the strategic partners for ROK‟s
grants and mid-term concessional loans, and is also the biggest recipient of
ROK‟s ODA. Since the start of ODA funding for Vietnam in 1993 with
US$100 thousand, the ROK has so far provided over US$1.5 billion of
ODA to the country. ROK also designated Vietnam as a "core" Knowledge
Sharing Programme (KSP) beneficiary 4 years ago. Under this programme,
ROK agrees not only to transfer its high technology and its accumulated
development knowledge to Vietnam but also to assist Vietnam design the
most effective development strategy to build prosperous nation in the future.
3.1.2.4. Cultural Cooperation
ROK and Vietnam share a common experience of having overcome
every national crisis, at home and abroad, throughout thousands of years of
history, while proudly preserving their traditions and culture. The
relationship between Vietnam and ROK in culture, sports and tourism has
been remarkably developed over the past 20 years, especially in the past 10
years, with depth, substance and in a sound direction. The cooperation in
three areas of culture, tourism and sports is relatively equal, diverse, and
increasing in intensity, scale and depth. Travel between the two nations has
also grown as impressively as economic exchange. Apart from friendship
activities, great importance has also been placed on calling for assistance
from Korean non-governmental organizations (NGOs).
Currently, international marriages between Koreans and Vietnamese are
increasing. However, problems in multicultural families arise from the
differences in language, culinary culture and women‟s awareness of their
social status. With a view towards developing into a progressive and
globalized country in the 21

st
century, Korean people need to be aware that
ROK has to change into a multiethnic, multicultural and multilingual


19
society. To this end, it is essential that changes be made in terms of
awareness and education. There should be policies to support such couples
and their children so that they can lay the foundation for multiculturalism in
families, playing a variety of roles in the future ROK-Vietnam relationship.
3.1.2.5. Motivations behind Rapidly Expanding Bilateral Relations
First, the economies of the two countries are mutually complementary.
Second, ROK and Vietnam are geographically close. Third, ROK and
Vietnam share cultural similarities. The fourth is “strategic consensus” –
ROK and Vietnam share common interests in peace, stability, and
prosperity in the North East and South East Asian region.
3.2. Opportunities and Challenges of ROK-Vietnam Relations
3.2.1. Opportunities of ROK- Vietnam Relations
The current relationship between Vietnam and ROK is not an “ordinary”
one anymore. It has developed into a very special one – a combination of
friendship, brotherhood and even an “in-law relationship”, as it is
sometimes called by leaders and the people of both countries. Vietnam is
emerging as ROK‟s most important cooperation partner in Southeast Asia.
Meanwhile for Vietnam, ROK plays the role of an important economic
development model for its modernization and industrialization by 2020.
Further, there remains a reciprocal, complex and closely-linked relationship
between the two countries. It is the enthusiasm and warm sentiments of the two
countries‟ peoples which has paved the way for the remarkable development of
ROK-Vietnam ties over the past 20 years. In the new international context, the
first priority in the two countries‟ diplomatic policies is to promote their

relations through rational and harmonious policy coordination. To achieve
these goals smoothly, they should work together to newly map out “a long-term,
comprehensive and strategic partnership” soon.
3.2.2. Challenges of ROK-Vietnam Diplomatic Relations
3.2.2.1 Challenges in Regional and Global Dimensions
Briefly, there are five diplomatic challenges which ROK and Vietnam
can jointly address in the future. These are:


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1) Reshaping of Global Order and Governance
2) China on the rise and the United States in relative decline
3) Uncertain prospects for the world economy
4) Emerging issues in East Asia‟s traditional foreign relations
5) North Korea‟s Nuclear Issue
3.2.2.2. Challenges in Bilateral Relations
1) Trade Deficit Issue
The value of two-way trade between Vietnam and ROK has been
increasing but this has also created a growing trade deficit, despite
continuous growth of Vietnamese exports. To reduce the trade deficit from
ROK, ROK has increased investment in the Vietnamese supporting industry
as well as in the agriculture-fishery distribution sector. Trade promotion in
these fields should also be stepped up. Vietnam should boost its export of
high quality agricultural and fishery products to ROK.
2) Multicultural Families
In the context of globalization, the number of multicultural families is
increasing. Currently, international marriages in the ROK involve many
Vietnamese. The rapid and recent increase of international marriages has
resulted in a number of conflicts and misfortunes caused by cultural
differences between spouses. This kind of sensitive issue might have a

negative impact on ROK-Vietnam relations in the long term. Therefore,
related agencies of the two countries should look for possible and
reasonable ways to address the problem as soon as possible.
3) Unbalanced Cultural Exchange
Vietnam is now overwhelmed by a “Korean wave”, and a “following the
example of ROK” spirit. The impact of the “Korean wave” during the last
decade, especially on young Vietnamese, has been dramatic and highly
significant. By contrast, knowledge about Vietnamese culture has not
become widespread in ROK. Koreans only know about some cultural
highlights of Vietnam such as the “ao dai” and “pho.” Therefore, it is


21
necessary that Vietnam strengthen its cultural activities in ROK to respond
to the popularity of Korean wave in Vietnam.
3.3. ROK-Vietnam Relations: Ways Forward in the 21st Century
3.3.1. Strategic Cooperative Partnership and Ways Forward
Vietnam is now focusing on seeking measures to boost economic growth.
Externally, it is trying to accelerate its integration into the world economy,
for example through participation in the TPP. Vietnam is now trying to
strengthen its domestic financial sector through measures such as
reorganizing weak financial corporations and reconstructing state-owned
enterprises with “the second reform program.”
Meanwhile, ROK still has to deal with the outdated legacies of the Cold
War on the Korean peninsula. The nuclear issue of North Korea is
becoming one of the greatest threats to the world peace and security. ROK
needs Vietnam‟s cooperation in its reunification of the two Koreas. It is
natural that ROK should make efforts to reshape and rejuvenate its foreign
policy to adapt itself swiftly to the changing world order and maximize
national interests in the 21st century. Of course, Vietnam should do

likewise in the entire process of economic reconstruction. Based on the trust
built thus far, both countries need to engage in “strategic dialogue”, and
discuss matters of substance in an open and honest manner now and in the
future. It is crucial that leaders of the two countries look beyond the
pending agendas during their term in office. They need to have a long-term
vision of 20 to 50 years down the road in promoting ROK-Vietnam
relations.
3.3.2. General Principles
In order to achieve “Strategic Cooperative Partnerships” on a long term
basis in the 21
st
century, ROK-Vietnam relations need to be newly set on
the basic principles of mutual interest and respect, with both countries
striving for peace, stability, security and prosperity in Asia Pacific and the
world. Their ties should be promoted in a way that does not harm the
important bilateral relationships both countries have with other powers in


22
the world such as the United States, China, Japan and Russia. The long-
term relationship between ROK and Vietnam needs to be progressively
upgraded in the economic, political and security sectors. Thus, the issue of
national interests should come first under any circumstance. Historical
factors and the traditional friendship characterizing ROK-Vietnam relations
must also be considered, and bitterness of ROK‟s as a US ally participation
in the Vietnam War should be put aside. Here one can be optimistic.
Vietnamese people, though never forgetting the past and their sufferings,
tend to look to the future in a spirit of reconciliation and harmony with
other nations.
3.3.3. Recommendations for Deepening Strategic Partnership

1) Outline a long-term vision based on mutual trust.
2) Strive to maximize the strengths and minimize the weaknesses in
the existing cooperative mechanisms, building mechanisms of cooperation
that facilitate mutual support and assistance in the service of both countries‟
interests and a long-lasting sustainable relationship.
3) Make efforts to consolidate cooperation in the East Asian region
and build bridges for dialogue and mutual understanding among great
powers like the US and China
4) Support North Korea on its way to become a normal country and
integrate into international community through reform and innovation.
5) Make coordinated responses to global issues like energy security,
climate change and food security.




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CONCLUSION
Many experts consider the 21
st
century as the „Era of Asia.‟ China is
upgrading its strong position as an economic, diplomatic and military power.
Basing on these remarkable outcomes and through active diplomacy
appropriate to its growing national status, China will try its best to
strengthen its voice in the international community and ceaselessly enlarge
its influence, and to effect changes in the existing East Asian order, while
maintaining its leading position. It is thus important for ROK and Vietnam
to seek a new cooperation strategy, taking into account the rise of China
and the constant changes in regional and global governance.
In relation to upgrading the ROK-Vietnam “Strategic Cooperative

Partnership” in the 21
st
century, both countries, strengthening their
constructive and forward-looking relationship based on mutual benefit and
trust, and preserving their position as driving forces for growth in the East
Asian region, should create a new cooperative model in the field of security
and defense which can adapt their foreign policies smoothly to the rapidly
changing global order and governance.
The prospects of ROK-Vietnam economic cooperation are really bright
and have an important role in the relationship between ROK and ASEAN as
well as in the relationship between ROK and the Asia-Pacific region as a
whole. In order to promote the ROK-Vietnam strategic cooperative
partnership in the years to come, it is essential to establish and develop a
comprehensive long-term policy based on the principle of mutual interest
and respect. One of cornerstones is that both countries should soon
conclude a ROK-Vietnam Free Trade Agreement (FTA) and conduct
negotiations to upgrade the whole legal and institutional framework of
bilateral cooperation.
Lastly, the economic structure of both countries is shifting toward
industrialization and modernization. From now on, ROK and Vietnam will
have to map out a “Totally Comprehensive and Long-term Strategic
Cooperative Partnership”, with provisions to swiftly adapt to the continual