Quan hệ kinh tế của trung quốc với châu phi từ năm 2000 đến nay và gợi ý chính sách cho việt nam tt tiếng anh

VIETNAM ACADEMY OF SOCIAL SCIENCES (VASS)
GRADUATE ACADEMY OF SOCIAL SCIENCES (GASS)

NGUYEN XUAN BACH

CHINA'S ECONOMIC TIES WITH AFRICA FROM THE
YEAR 2000 TO PRESENT
AND POLICY IMPLICATIONS FOR VIETNAM

Sector: International Economics
Code: 9 31 01 06

SUMMARY OF DOCTORAL THESIS

Hanoi, 2019


VIETNAM ACADEMY OF SOCIAL SCIENCES
GRADUATE ACADEMY OF SOCIAL SCIENCES

Supervisors:
1. Assoc. Prof./Dr. Bui Nhat Quang
2. Assoc. Prof./Dr. Nguyen Manh Hung

Opponents:
1. Assoc. Prof. Dr. Doan Ke Bon
2. Assoc. Prof. Dr. Pham Thai Quoc
3. Assoc. Prof. Dr. Pham Thu Huong

The PhD. Thesis is defended at the PhD. Thesis Evaluation Council,
Graduate Academy of Social Sciences, No. 477 Nguyen Trai Street,

Thanh Xuan District, Hanoi

Available at:
- National Library of Vietnam
- Library of Graduate Academy of Social Sciences


PREAMBLE
1. Urgency of the thesis
Since the Forum on China–Africa Cooperation (FOCAC) was
held in 2000 and implementation of the “Going Global Strategy”,
Africa–China relations has entered into the new development stage,
in many sectors from economics to politics, diplomacy, culture and
society.
With the target on economic recovery, acceleration of the
Millennium Development Goals (MDGs) and Sustainable
Development Goals (SDGs) in the period from 2015 to 2030, many
African countries has considered China being an emerging economy,
able to cooperate with and seek for common progress and
development. To China, Africa is rich in natural resources with the
large market size, being in need of political stability and economic
development. Expanding relations with African countries is a
strategic foreign mission of China in order to build and maintain
influence in the Dark Continent and world. The White paper on
Africa in 2006 emphasized the issue of economic cooperation,
concentrating on key sectors such as trade, agricultural investment,
economic assistance etc ... Up to present, China has become the
biggest trade partner in Africa, while also one of the major sponsors
for this continent’s development. Development conditions and wills
of each party show that China-Africa economic and trade

cooperation share huge potential/ is numerous.
Like China, Vietnam has a close traditional friendship
relationship with many African countries, coming from shared and
common sense in the struggle for independence and national
liberation. From the adoption of Doi Moi, Vietnam's foreign policy
emphasizes respect for independence, sovereignty, not interfering in
internal affairs, fighting for peace and development, and promoting
the role Asian and African countries which have been supported and
approved by many African countries. However, over the past years,
we have not taken advantage of this good traditional relationship to
increase Vietnam-Africa relations for reaching a new height.
1


Stemming from this practice, it is necessary to choose the
thesis "China's economic ties with Africa from year 2000 to
present and policy implications for Vietnam” that is urgently in
both theory and practice, in order to assess the impact of economic
relations of China with African countries, for drawing lessons and
policy proposals to promote Vietnam’s economic relations with
Africa in the coming time.
2. The purpose and tasks of the research:
2.1. The purpose of research:
By clarifying the actual situation of China's economic relations with
Africa as from 2000 up to present, analyzing successes and
limitations of this relationship, drawing experience lessons and
raising solutions to Vietnam for boosting Vietnam’s economic
relationship to Africa in the time to come.
2.2. Research tasks of the thesis:
Firstly, systematize a number of theoretical aspects and

research perspective on China's economic relations with Africa.
Secondly, study the current status of China's economic
relations with Africa as from 2000 to present day; assess and forecast
the development trend of China's economic relations with Africa.
Thirdly, propose some policy solutions for Vietnam to
promote economic relations with Africa.
3. The object and scope of the research
- Research object of the thesis: China's economic relations with
Africa, of which focuses on three areas: trade relations, investment
relations and development assistance relations.
- Research scope of the thesis:
+ Spatial scope
As Africa includes a continent of 55 countries, so the thesis will
concentrate mainly on China's major economic partners in Africa,
especially focusing on the Top 10 African countries as trading and
investment partners and China's largest aid recipients. These are
African countries that China has a great influence on economics and
2


politics and African economies that have geo-economic and
geopolitical potential in economic relations with China.
+ Time scope: As from 2000 to present.
+ Content scope: focusing on key areas as trade, investment and
development assistance.
Due to the asymmetric nature of China's economic relations with
Africa (the size of China's economy is much larger than the size of
economies in Africa), this Dissertation approaches this relationship
mainly in the direction from China, especially in investment relations
(mainly Chinese investment in Africa), trade relations (China’s

bilateral import and export with Africa) and aid (Chinese aid to
Africa) as well as Chinese policies towards Africa.
4. Approaches, research methodology and analytical framework
4.1. Approaches to research issue
+ Historical approach
+ Benefit approach
+ Interdisciplinary approach
4.2. Research Methods
- In the process of research, the thesis uses many scientific research
methods as follows:
- Historical divergence used for analyzing, assessing China’s
economic relations with Africa in stages.
- Methods of synthesis, analysis and comparison.
- Simple Statistical Analysis (absolute value, relative value,
frequency ...), description through drawings, diagrams and charts
- Case study method: cases are in depth study of the thesis are
China's economic relations with three African countries such as:
South Africa, Nigeria and Ethiopia.
- Forecasting methods, based on scenarios with major factors
affecting the socio-economic development of China and African
countries.
3


- Expert interviews: in this thesis, interviews will be carried out with
some Vietnamese experts on China’s economic relationship with
Africa in recent years and points of view of experts on solutions to
promote Vietnam - Africa economic relations in the coming time. It
is necessary to find contents, opinions of policy makers and actual
activists in Africa; and giving a number of recommendations for

solutions that are more practical for thesis.
+ Data source: the thesis mainly uses secondary documents
The thesis also uses a number of primary documents, taken from the
Department of West Asian - Africa Affairs under the Ministry of
Foreign Affairs and the Institute for Africa and Middle East Studies
(IAMES). These are the evaluation documents in reality of survey of
Vietnam’s scholars, diplomats and leaders to some African countries
in the past time. These documents will help the thesis author to have
more practical information and knowledge to evaluate Vietnam’s
economic relationship with Africa in the past time and make
recommendation for solutions after studying the lesson from China’s
relation with African countries.
4.3. Analytical framework of the thesis:
On that basis, the thesis makes an analytical framework as follows:
China's economic relation with Africa
Evaluate
Evaluate
Evaluate impacts Evaluate prospects
motivation status of the of the relationship
of the relationship
of
the relationship
relationship

4


through
benefit
analysis

through
criteria for
measuring
trade,
investment
and
aid
relations
through
factors
affecting
trade,
investment
and
aid
relations

- from
different
points of view:
The point of view
of
mutuallybeneficial
cooperation among
developing
economies; China’s
doctrine
of
“Community

of
Common Destiny”
Perspectives
on
dependency
and
new colonialism

- Through new
context and factor:
+ China’s
development
of
China; Africa’s
development;
the
world’s
development
context and Africa’s
features
+ China's
contradictions:
between short-term
economic benefits
and
overall
benefits; between
the
goal
to

strengthen
the
comprehensive
power and the goal
of building a good
image; between
national
development
benefits and Africa's
long-term
development
interests

5. New contributions of the thesis
Regarding scientific theoretical point: the thesis contributes to prove
that China's economic relations with Africa have reached certain
successes, brought positive effect on some African economies.
However, the thesis also pointed out the trend of a new version of
Colonialism of China in Africa, reflected by policies and activities of
exploiting resources, markets, aid and Chinese immigrants in African
5


countries. In dealing with economic relations with Africa, China is
also facing many conflicts difficult to resolve, including a conflict
between short-term economic benefits and political and diplomatic
interests in their efforts to increase the status and influence in this
continent. Regarding policies contribution, by analyzing China’s
economic relations with Africa, this thesis also said that Vietnam
needs to develop the traditional relationship with African countries;

the use of foreign policy is a connection to speed up economic
relationship between Vietnam and African countries in the coming
time.
6. Structure of the thesis
In addition to the introduction, conclusions and references, the thesis
consists of four main chapters as follows:
Chapter 1: Overview of research studies related to the thesis
Chapter 2: Theoretical and practical bases of China’s economic
relations with Africa
Chapter 3: China's economic relations with Africa from 2000 to
present
Chapter 4: Prospects of China's economic relations with Africa and
policy implications for Vietnam

CHAPTER 1
OVERVIEW OF RESEARCH STUDIES
RELATED TO THE THESIS
1.1. Domestic studies
Economic relations between China and African nations have
generated much interest among development experts and
practitioners over the last years. Research studies can be classified in
contents under the following items: i) to make research on the
relationship of the major countries to African region, of which
including China's relationship with Africa; and ii) to study China's
economic relations with Africa.
6


1.2. Foreign researches
Foreign documents on China's relationship with Africa are numerous,

scholars in the world are also very interested in research of China’s
economic relations with Africa, focusing on the following key
themes: i) firstly, studies on overall picture of China’s economic
cooperation and policy with Africa. Secondly, researches in the areas
of economic cooperation between China and Africa in particular of
trade, investment, agricultural development building infrastructure,
development aid, etc.... Thirdly, studies on China’s economic
relations with some major African countries. Fourthly, researches on
China's policies with Africa after the 19th National Congress of the
Communist Party of China.
1.3. Conclusion drawn based on the research results related to
the thesis topic and the issue for further research
* Contents inherited based on the research results related to the thesis
Domestic and foreign studies have provided diverse materials with
different analytical points of view on China’s relations with African
countries. Through these research projects, the author can inherit a
number of the following basic contents:
Firstly, it provides an overall picture on the socio-economic
development status in Africa in general, and some countries in Africa
in particular. Through this overall picture, it has been found that
African countries are in need for economic reforms and
development, but they are lack of investment capital, technology and
other development resources. In recent time, African countries have
received much support from major countries in the world, including
the U.S.A, EU, China, Japan, ... and each major country builds their
own political and economic cooperation strategies for the African
region.
Secondly, previous projects have analyzed China's economic
relations with the African region across fields: trade, investment, aid.
Through these studies, it can be inherited different documents and

data related to specific issues such as cooperation relations in energy,
oil, investment, aid, etc ... between China and African countries.
7


These are extremely useful documents, helping the author get basic
knowledge on China’s economic relations with Africa over the past
time.
Thirdly, previous studies have analyzed and evaluated China's
role and influence in the African region, positive and negative
impacts from China's economic projects on some countries in Africa,
influence competition of major countries in Africa and China’s ways
to penetrate the African markets. These issues are chosen selectively
by the dissertation author, leading more definite and clearly points of
view and approaches to China's influence and economic role in
Africa in general and some African countries in particular way.
Fourthly, writers in the previous projects have drawn some
lessons for developing countries in receiving the wave of investment
and trading from China. As a developing country, Vietnam should
also refer to these lessons. This is also an issue that the thesis can
succeed selectively.
* Research gap and thesis approach:
Firstly, research projects related to the thesis are extremely
diverse and abundant, only at analyzing the actual situation of
China's economic relations with Africa, the benefit motive behind
China’s relations with Africa; but has not clarified the potentials,
advantages and factors affecting the economic cooperation
relationship between China and Africa, of which includes objective
factors, some factors belonged to China and some elements of
African countries. These new points will be found out by the

dissertation for searching and clarification.
Secondly, documents for research in relation to this thesis
have assessed the relationship between China and Africa on a variety
of different approaches, with distinguished perspectives, both with a
favorable view towards China, and with a viewpoint in order to
criticize China taking African countries unsustainable development,
creating "new colonialism", with a bias in favour of African
countries ... It is understandable by research projects related to the
thesis is in diversity, from Chinese researchers, to Asian and Western
8


researchers, researchers from African countries and Vietnamese
researchers. This diversity is a gap in the thesis, enforcing the thesis
writer to pursue a unified and clear research perspective on
objectives to be addressed in the thesis. The writer will stand on the
Chinese point of view to study, evaluate policies, approaches and
economic cooperation activities of China in the African markets,
since, drawing lessons for Vietnam as being in need of reaching the
African markets more effectively.
Thirdly, data and information in documents and papers
concerning with the thesis failed to be update and systemic. Task of
the thesis is to systematize and update research issues, analyze
economic cooperation relations between China and Africa according
to historical length variations continuously from 2000 to present to
clarify the nature of this relationship. In particular, effects of China's
economic relations with Africa have not been assessed deeply,
especially changes after the 19th National Congress of the
Communist Party of China (CPC) and in the context of China’s
economy which has been making significant adjustments and

changes.
Fourthly, most of the research materials relevant to the thesis
have been made by foreign authors. Domestic in-depth research
projects directly related to the thesis do not seem to be available, but
only in scientific articles. The thesis mission is to draw lessons and
policy recommendations for Vietnam in enhancing economic
cooperation with Africa to be derived from China’s experience. This
is a new issue, which has not been studied in previous research
papers. The dissertation title will ensure new contributions, giving
personal assessment on China’s economic cooperation relationship
with Africa; thereby key lessons and implications to be derived for
Vietnam are also presented.

9


CHAPTER 2
THEORETICAL AND PRACTICAL BASES OF
CHINA’S ECONOMIC TIES WITH AFRICA
2.1. Theoretical bases for evaluating China's economic relations
with Africa
2.1.1. Some arguments about China's economic relations
with Africa
Argument based on some traditional theories on economic
cooperation
Theoretical points of view in favorable of boosting China’s economic
relations with Africa show that this fits into the inevitable
globalization and dynamic development trends world, reform
process, opening up of China and Africa. China and African
countries are both developing economies, with potentials and

comparative advantages that can complement each other.
Argument on the Community of Common Destiny by China
This point of view delivered as China has been increasingly growing,
to want more clearly its important role, especially for developing
countries, by proposing models, initiatives and slogans in
cooperation. At the 19th National Congress of the Communist Party
of China, General Secretary Xi Jinping emphasized two of China's
overarching foreign goals in the new era: building new international
relations and the Community of Common Destiny.
These are very attractive cooperative points for developing
countries, including many African countries. Especially, many of the
points in building "Community of Common Destiny" have targeted
the psychology and political views of many African countries that
are not satisfied with the world order imposed by the United States of
America and the West.
Argument on dependence and new colonialism
It is said that the economic relationship with China does not form
benefits to Africa in the long term. Africa will likely increasingly
depend on China that via its adopting trade, investment, immigration
10


and aid activities to build a “new colonialism” or “China’s new
colonialism” in Africa.
2.1.2. Impact factors and criteria for evaluating China's
economic relations with Africa
Impact factors
1. Close political-diplomatic relations between China and African
countries:
2. Differences in absolute and relative advantages between China and

Africa:
3. Differences in levels of development and technology:
4. Differences in economic size:
5. China’s strategies and policies:
Evaluation criteria
Within the scope of this dissertation’s research, the criteria to
evaluate China’s relations with Africa though three major areas:
trade, investment and development aid as follows:
1. Trade relations:
- Import and export turnover by two countries:
- The main kinds of export and import goods by two countries:
- Trade deficit and surplus by two countries.
- China's major trading partners in Africa:
- The proportion of each side’s import-export turnover compared
with the total import-export turnover and other partners:
2. Investment relations (mainly China’s foreign direct investment
into Africa):
- Value of investment capital and number of investment projects
(mainly China’s investment into Africa):
- Key investment sectors:
- China’s major investment areas in Africa:
- Proportion of investment capital in a total of foreign investment
capital of each side:
11


3. Development aid relations (China in aid and African countries
being recipients):
- The total amount of aid through stages, years:
- Major sectors, projects, recipients of aid in Africa:

2.2. Practical bases of China's economic relations with Africa
2.2.1. The rise of China’s economy and Africa’s potentials
With the rise of economy and the increasing political
influence on the global scale, China is increasingly interested in
Africa for exploitation of its development and empowerment. China
has emerged as an important strategic partner for Africa. African
countries need to enhance economic relations with China to fulfill
their socio-economic and poverty eradication goals.
2.2.2. History of China's policies & relations towards Africa
China and African countries maintain a close traditional
relationship; while the US and Western countries always require
binding conditions on economics & politics as establishing
relationships with African countries, China's foreign policy has
always emphasized the type of win-win cooperation, upholding the
principle of non-interference in each other's internal affairs and, not
imposing social regimes or ideological models for African countries
which China has helped. This diplomatic principle has just made
China to gain certain advantages in diplomatic relations with Africa.
Having followed a path of development to affirm the position as a
world Power in both economics, politics and military, China has
applied a policy of wisdom, persistence, efficiency, based on the
power of money and soft diplomacy for regional organizations as
well as countries ... in order to enlist the support of African
governments and take advantage of comprehensive benefits in this
continent.
2.2.3. Benefits concern of China and Africa
China's concerns for Africa
Firstly, to approach and exploit rich and diverse natural resources
from the continent; Secondly, to develop China's commodity export
12

market; Thirdly, to expand influence, seek the support of African
countries at international forums. In general, China's benefit concerns
in Africa has made drastic changes in its stages of development: from
pursuing political perspective as major benefit in the pre-1980s
period to following economics as major benefits; a gradual shift to
comprehensive benefit of which economics interest as foundation,
especially from the early 2000s to present. In particular, in the last 5
years, that comprehensive benefit concern is also accompanied with
China's strategy on expansion of influence and global power.
African countries’ concerns for China
Firstly, to support the political institutions of African
countries; Secondly, Africa wants China to increasingly assist in
economics.

CHAPTER 3
REALITIES OF CHINA'S ECONOMIC TIES WITH AFRICA
SINCE 2000 TO PRESENT
3.1. Realities of China's trading relations with Africa
China’s trading activity in Africa principally focused on countries
abundant in natural resources and that recognize China as a Market
Economy.
Since 2000, trade relations between China and Africa have increased
significantly and remarkably. For the period of 2004-2014, the
growth rate in trade between China and Africa reached 24.4% per
year. This is the highest trading growth rate among major partners of
Africa such as the US, Europe and Japan. However, China's trade
with Africa has declined after the peak of 2014 due to China’s
economic slowdown in the process of adjusting the growth model

and the drop in resource prices. China - Africa trade turn-over in
2016 was only about 149 billion USD, of which China’s export
turnover into Africa reached 92,3 billion USD1. Trade deficit has
reversed after 2014 along with China’s decrease of imports of natural
13


resources in the process of transformation of economic growth
pattern.
In the structure of China’s goods import from Africa, raw
materials and resources account for the majority. The structure of
Chinese goods exports to Africa remains diverse, but still focuses
primarily on transport machinery and equipment, manufactured
goods and handicrafts. Although China-Africa trade relations since
2000 have grown very rapidly, import and export structure has
become more and more diversified, but China's trade activities in
Africa only in a number of countries, such as: South Africa, Angola,
Nigeria, Congo, Ghana, Sudan, Zambia, Tanzania, Kenya, Benin and
Mozambique. China’s trade growth of major partners in Africa
remains strong.
3.2. Realities of China's investment relations with Africa
China and many African countries have signed Bilateral
Investment Treaties (BITs). To complement BITs, China has entered
into 11 Double Taxation Agreements (DTAs) with African countries.
In addition, China has established special economic zones (SEZs) in
Africa to support Chinese enterprises subject to foreign investment
policies and facilitate Africa’s exports to China.
By the end of 2012, China's total Outward Foreign Direct
Investments (OFDI) stood at 531.94 billion USD, of which China's
total FDI accumulative in Africa reached 21.73 billion USD,

accounting for 4.1% of China's OFDI capital. EU, China, Japan and
the US make up 54% of OFDI in the Sub-Saharan Africa in 2012.
Total cumulative capital of China, Japan, the US and EU in the SubSaharan Africa have increased nearly fivefold from 2001 to 2012,
from 27.2 billion USD up 132.8 billion USD. The capital
accumulative of these four countries has grown very rapidly since
2001 principally because in this time, China has invested the large
amount of FDI into Africa, with the growth rate standing at 53% per
year, while Japan only reached at the rate of 29%/year, EU reached
16% /year and US reached 14% /year. China is the 2nd largest foreign
partner in Africa, trailed behind EU on FDI. At the first time, in
2013, China's FDI in Africa reached 26 billion USD, exceeding the
14


US (United States gained 22 billion USD). During 2005-2016, China
has invested a total of US$66.4bn in 293 projects in Africa since
2015, altogether creating 130,750 jobs.
China has invested FDI mainly covering resource-rich nations
Chinese enterprises are located mainly in Nigeria, South Africa,
Zambia, Ethiopia, Egypt, Ghana, Tanzania, Democratic Republic of
Congo, Sudan ...
By the end of 2011, China has achieved FDI investment diversified
across economic sectors as follows: resource exploitation (31%),
finance (20%), construction industry (16.4%), manufacturing (15%),
the rest on other areas such as retail and wholesale trade, agriculture,
forestry and fishery, scientific research, real estate, leasing and
business services .... China’s outward foreign investment in
agricultural sector in Africa are rising sharply in various forms,
including aid projects, agricultural infrastructure investment projects,
agricultural technology investment projects and training programs.

3.3. Realities of China's aid to Africa
In the 1st China's White Paper on Foreign Aid, it is asserted that
“China never uses foreign aid as a means to interfere in recipient
countries' internal affairs or seek political privileges for itself”. China
maintains that foreign aid is adhering to equality, mutual benefit and
common development, mutual help between developing countries,
focuses on practical effects, accommodates recipient countries'
interests …” [68]. In the 2nd China's White Paper on Foreign Aid
(released in 2014), China emphasized that aid mechanism for Africa
is through Forum on China-Africa Cooperation (FOCAC), China's
assistance will be primarily used in the areas of agricultural
development, infrastructure, promoting regional economic
integration, medical care and health cooperation, enhancing the
mechanism and capacity building, climate change response and some
other areas [88].
In formal, China's Foreign Aid to Africa is very diverse, may
temporarily provided two types as follows: Official Development
Assistance (ODA) and Official Offshore Fund (OOF). About ODA,
15


China applied forms of ODA such as technical assistance or scholar
exchange, debt with large grants, purposeful subsidies, debt
reduction, purposeful military aid. About OOF, there is a loan with
small grants, non-purpose loans, low interest loans.
In the subject, China's foreign aid for Africa is in-charge of
various agencies. The Chinese government encourages its agencies
and commercial entities to closely mix and combine foreign aid,
direct investment, service contracts, labor cooperation, foreign trade
and export aimed to maximize feasibility and flexibility of Chinese

projects to meet local realities in the recipient country.
Since the FOCAC held in 2000, China’s aid and investment
flows have increased rapidly over time. Estimates for the period
2000-2011, China had provided 1,673 projects for 50 countries in
Africa [49] in forms of different aid, in which at least 62% of
projects (1,422 projects) has been properly committed, totaling 75.4
billion USD. Chinese foreign aid to Africa accounted for nearly half
of Chinese aid in total in 2009 [49].
In aid recipient sectors, in the period of 2000-2011, Chinese
aid in Africa in value has been focused most on transport and
warehousing; construction of power plants, community building,
agriculture, forestry and fisheries, trade and tourism. In number of
projects, the areas received the most aid is government and civil
society, health and education [46].
In aid recipients from China, African countries have
received the most aid by capital values inclusive of Ghana, Nigeria,
Sudan, Ethiopia, Mauritania, Angola, Zimbabwe, Equatorial Guinea,
Cameroon and South Africa.
3.4. Assessment of actual status of China's economic
relations with Africa since 2000 to present
3.4.1. Results achieved
Firstly, China has satisfied the thirst for resources abroad in
meeting the demand of domestic economic growth;
Secondly, China has penetrated in Africa for its cheap
consumer commodities that are being massively produced in the
16


country, effectively serving China's export-oriented industrialization
strategy.

Thirdly, China's economic benefits brought in Africa are
huge, including revenue, profit, and employment.
Fourthly, China has influenced on African countries thanks to
huge financial aid
3.4.2. Issues and causes
Firstly, the economic linkage between Chinese enterprises
and local entities in African countries remains weak and ineffective;
Secondly, China’s cheap goods have eroded the
industrialization strategy of some African countries;
Thirdly, problems masked from Chinese investment projects
in African countries;
Fourthly, China is being "blamed" for abetting corruption and
instability in Africa.

Chapter 4
OUTLOOK OF CHINA’S RELATIONS ECONOMICS WITH
AFRICA AND POLICY IMPLICATIONS FOR VIETNAM
4.1. China’s relations economics outlook with Africa in the new
period
There are three sets of factors that will affect China's economic
relations with African countries in the coming time, including:
The set of factors from China
Two significant factors affecting the stability and expansion of
China's economic relations with African countries, as follows: 1)
Attractiveness of China’s economy; and 2) Settlement of
bottlenecks constraining in China's relations with African countries
to building lasting trust. A major limit in China's current strategy
17

with Africa is that it is difficult to maintain a balance between
economic and political-diplomacy interests.
The set of factors from Africa’s development
The continent of Africa is still facing many political-security
challenges, especially, escalation of violence and terrorism. Some
countries have successfully reformed, attained admirable
development achievements but some had failed and efforts to
institutional reform even push the country to unremitting instability
[74]. Africa in poverty with obsolete models remains in existence or
in slow changes just because political forces in power in these
impoverished countries to maintain it for protection of their interests
[44].
Development context of the world and some specific issues of the
region
Commodity prices continue to remain low in the coming time, which
will strongly affect the growth of African economies, especially
those are heavily dependent on resource exports, in which China is a
large import partner. This will lose the dynamic of China's economic
relations with the region, and force the two sides to adjust their
economic relations in depth and improve quality instead of quantity.
The current international environment is facilitating to
expand the Chinese influence in Africa. In general, China's relations
with African countries in the context of adjusting its development
mode and, changes in the world will continue to be pragmatic, focus
on economic benefits and lack of strategic trust. Those characteristics
will put this relationship heading more challenges than opportunities.
4.2. Situation of Vietnam’s economic relations with Africa over
the last time
4.2.1. Vietnam - Africa trade - investment activities over the last
period of time

Vietnam has a close traditional friendship relationship with
many African countries, coming from shared and common sense in
the struggle for independence and national liberation. Implementing
consistently a Vietnam's foreign policy of peace and development,
18


and improving the greater role of Asian and African countries since
their reforms which have been supported by African countries.
However, Vietnam has not taken advantage of this close politicaldiplomacy traditional relationship to boost economic relations.
Currently, Vietnam’s trading-investment relations with Africa
are in strain compared with other regions. Vietnam has actively
promoted export diversification to Africa, not solidified its market
share yet. Vietnam’s goods are less competitive compared to other
countries, especially in comparison with China, Thailand, Malaysia
...
In the investment sector, Africa-Vietnam investment capitals
are still small, has not really commensurate with the existing
potential of both sides. In the area of investment cooperation,
government of African countries highly appreciate Vietnam's
achievements in the agricultural and industrial sectors and it is
expected that Vietnam's public and private enterprises to increase
investment in these countries, especially in the sectors of mechanics
and electronics, textile, agriculture, food processing ... Some
Vietnamese enterprises have surveyed and researched investment
markets in many African countries, market information, business
practices, but still have not found a common voice to promote
investment cooperation over the last time.
4.2.2. Success and restraint in Vietnam’s economic
relations with Africa over the last time and causes

* Success and causes
First of all, Vietnam’s trade relations with African countries
have increased consecutively both in quantity, turnover, import &
export goods and import-export partners. Africa has become an
important market to Vietnam.
In investment ties, Vietnam has not invested in many projects
in Africa, but these projects are highly appreciated by African
countries on technology (oil and gas, agricultural technology,
electronics, telecommunications, food processing), especially not
19


causing environmental pollution cases or adversely affecting the
social security of the local country.
In the exchange of experts and development aid, Vietnam
does not approach large projects in proportion to potential of both
sides.
Initial successes in Vietnam-Africa economic relationship has
been achieved by some of the following causes:
Firstly, status of close traditional diplomatic cooperation
between Vietnam and African countries since the Asian–African
Conference (also known as the Bandung Conference) held in 1955 to
present created solid foundation and basis to promote economic
relations on both sides.
Secondly, Vietnam and African countries are highly
complementary to each other with huge potentials for economic
cooperation.
Thirdly, Vietnam and African countries have developed
bilateral, multilateral, local and enterprise cooperation mechanisms,
facilitating bilateral cooperative relationship.

* Restraint and causes:
Firstly, political and diplomatic relations between Vietnam
and African countries have not been leveled with their potential and
advantages, so it cannot force to promote economic cooperation.
Secondly, Vietnam-Africa trade relations are in favor of trade
surplus with Vietnam. This shows that their potentials have been not
exploited in full.
Thirdly, Vietnam's investment and aid cooperation relations
with Africa have impeded due to lack of large capital and foreign
currency of Vietnamese enterprises.
Their major causes as follows:
- Vietnam and Africa affected by geographical distance
- Vietnam is not capable of manpower and capital to achieve longterm strategies like China in order to boost economic cooperation
with Africa.
20


- The legal framework creating favorable conditions for trade,
investment, finance, banking ... between Vietnam and African
countries remains incomplete.
- Vietnam and African countries seriously lack cooperation
agreements in the fields of finance and banking, so they face many
difficulties in import and export payment and capital approach.
4.3. Lessons for Vietnam from China - Africa economic relations
Firstly, select partners appropriately and approach more
actively in diplomatic relations;
Secondly, promote the potential and advantages, diversifying
economic ties, make up for deficiencies in development of the
national economy.
Thirdly, plan ways to expand economic relations with African

partners
Fourthly, the lesson on selecting mechanisms and modes of
cooperation with Africa
4.4. Policy implication for Vietnam
Firstly, it is necessary to further strengthen political and
diplomatic relations with African countries to create a solid
foundation for economic cooperation.
Secondly, continue to complete the legal framework to
enhance economic cooperation between Vietnam and African
countries.
Thirdly, it is necessary to quickly develop Vietnam's banking
cooperation project with a number of African countries in order to
solve difficulties in payment activities for Vietnam’s enterprises in
the African market.
Fourthly, it is essential to encourage and establish favorable
mechanisms for Vietnam’s enterprises to actively seek and
participate in trade cooperation, investment, joint ventures and
cooperation with African partners, especially in countries with large
market size, with potentials of oil, minerals and economic
geopolitical.
21


Fifthly, promote bilateral, tripartite, four-party cooperation
models between Vietnam and an African country and an international
organization (or a third country).
Sixthly, boosting Vietnam’s cooperation models to be great
of advantages into African countries, especially agriculture.
In addition to the cooperation in agricultural sector,
Vietnam’s enterprises need to actively seek and actively participate

in development and reconstruction projects in Africa, primarily in the
areas in urgent needs such as transport & communication, post telecommunications, housing, bridges, schools, hospitals ... thereby
promoting exchange of experts, providing Vietnamese workers,
supporting human resource training for Africa in their development
projects.

CONCLUSION
China’s benefit concerns and policies to Africa have been
made important adjustments since the early 2000s, especially after
the 19th National Congress, presenting a shift from emphasizing
economic cooperation to cooperating comprehensively, using many
channels of cooperation, of which economics is considered a key
sector, carrying out diplomatic activities being foundation and link
for paving the way, at the same time attached to the goal of
expanding China’s global influence.
In general, compared to the Western powers, China retains
the image of emerging power which is more sympathetic because of
the policy of "non-interference in internal affairs" and relationship of
cooperation and assistance in the struggle for national liberation of
African countries. Moreover, it is asserted that China is indispensable
in role and position in the continent's socio-economic development
process. However, Africa’s development and the increase of China’s
activity have demanded to change Chinese traditional policies. China
quietly abandoned the policy of “non-interference” before and
22


followed the policy “creative interference” instead or the policy
“influence without interference”. The nature of this policy is to
indirectly influence or intervene in the region through different

mechanisms, from aid, trade and investment activities and migration.
A major constraint in China's current strategy with Africa: it
is difficult to maintain a balanced relationship between economic and
political-diplomacy interests. China still lacks a strategy to resolve
conflicts between prioritizing economic development and other goals
in Africa, between short-term economic benefits and long-term
economic interests. Chinese businesses sought to maximize their
economic interests in Africa, which eroded the foundation for
political relations. The pursuit of China’s business community in
utilizing/maximizing business profits has caused social, economic
and environmental impacts, affected the sustainable development of
African local communities. Overall, China's relations with Africa in
the coming time will be continuously pragmatic, emphasize on
economic benefits and lack strategic trust. Those characteristics will
put this relationship ahead of more challenges than opportunities.
Therefore, challenges for African countries on the risk of
environmental pollution and becoming an industrial waste dump will
continue to be very large in the future. Moreover, under the pressure
of domestic population and employment, flow of Chinese immigrants
to Africa will continuously increase rapidly, causing much tension in
China’s relationship with African countries.
With the current limitations and drawbacks, it is difficult for
China to harmonize the three contradictions in the relationship with
Africa: it is a conflict between the short-term economic interests in
the region and the overall benefit, accompanied with, a conflict
between pragmatic values in China's diplomatic strategy and
common core standards and trends in development of the world;
contradiction between the goal to enhance/strengthen the
comprehensive national power and position in a global strategy with
the aim of building a better image and a stronger position in the

region; and finally, the conflict between the needs and interests of
23