Vietnam, Philippines Finalize Agreements on South China Sea Security – Reuters

By Khanh Vu

HANOI (Reuters) – On Tuesday, Vietnam and the Philippines announced an agreement to enhance cooperation between their coastguards and to work on preventing incidents in the South China Sea. This announcement was made during Philippine President Ferdinand Marcos Jr.’s state visit to Hanoi.

Both nations have competing claims over parts of the South China Sea, a vital route for $3 trillion of annual trade that China asserts nearly in its entirety.

The agreements, which include two memoranda of understanding, focus on "incident prevention in the South China Sea" and "maritime cooperation" between their coastguards. A Vietnamese official shared these details during a formal ceremony at the presidential palace.

These agreements could potentially provoke Beijing, particularly if they lead to compromises regarding the contested claims. China often approaches progress in border dispute resolutions with skepticism, especially among different claimants.

Hanoi and Manila have experienced tensions with China’s coastguard previously, but recent confrontations, particularly between China and the Philippines—which is allied with the U.S.—have become more frequent, straining relations further.

The maritime cooperation initiative aims to foster a robust partnership between the two coastguards, focusing on capacity building, training, and exchanges of personnel and vessels to enhance joint operational effectiveness. President Marcos emphasized this point during a meeting with Vietnamese Prime Minister Pham Minh Chinh.

"The South China Sea remains a point of contention," Marcos remarked. "We are committed to defending our sovereignty, sovereign rights, and jurisdiction against any provocations. At the same time, we seek to address these issues with China through peaceful dialogue and consultations as equal sovereign states."

Prior to his meeting with Vietnam’s President Vo Van Thuong, Marcos referred to Vietnam as "the sole strategic partner of the Philippines" in Southeast Asia, highlighting that maritime cooperation is the cornerstone of their relationship.

Vietnamese Prime Minister Pham Minh Chinh noted the importance of unity and closer cooperation in the face of rapidly evolving global and regional situations, asserting that Marcos’ visit bolstered bilateral ties.

Additionally, Vietnam, a leading rice exporter, finalized agreements with the Philippines, a major rice importing country, focusing on rice trade and agricultural collaboration.

During his two-day visit, Marcos met with various Vietnamese leaders, but notably did not meet the Communist Party chief Nguyen Phu Trong, marking his third consecutive absence from meetings with visiting leaders this month. Despite concerns about his health due to recent absences, Trong had attended a session of the parliament in mid-January.

On Monday, prior to meeting with political leaders, Marcos engaged with Pham Nhat Vuong, the chairman of Vingroup, Vietnam’s largest conglomerate. Following their meeting, Vingroup announced plans for its electric vehicle unit, VinFast, to establish a business network in the Philippines.

Marcos indicated that the Philippines could aid in the production of batteries for electric vehicles, leveraging its reserves of cobalt and nickel, as stated by Vingroup. He also mentioned the goal of increasing bilateral trade from $7 billion to $10 billion.