Richard Javad Heydarian is a Manila-based academic, columnist and author
January 04, 2024
The once-impoverished and war-stricken nation of Vietnam has emerged as a global pivot state, with 2023 being the year in which major investors and superpowers paid more attention to it than ever before.
Vietnam’s diplomatic success has been nothing short of breath-taking. Within a span of few months, it became the only country to serve as a state-visit destination for both US President Joe Biden and Chinese President Xi Jinping. While Mr Biden oversaw the elevation of bilateral ties to a “comprehensive strategic partnership”, Mr Xi ushered in a “golden era” of bilateral relations with his communist brethren to the south.
Just as crucial, however, is the South-East Asian nation’s fruitful wooing of global investors, including Big Tech companies from the West and China. Flushed with increasingly sophisticated investments from overseas, it is gradually building up its own industrial base. Its homegrown electric car dynamo, VinFast, has launched its first dealership in the US, the world’s most competitive automobile market, months after a successful New York Stock Exchange debut.
In August, the barely half-a-decade-old VinFast was the world’s third-most valuable automobile company, beating blue-chip German and Japanese manufacturers. As if that weren’t enough, Vietnam is also intent on building its own semiconductor industry, thus joining the global “Chip War” with gusto. By adopting an adept “bamboo diplomacy”, Vietnam has managed to benefit from both western and Chinese investments.
Crucially, economic boom also allows this non-aligned nation to modernise its armed forces and, accordingly, develop robust deterrence against external aggression. The leadership’s goal is to turn the country into a modern and self-reliant power in the Indo-Pacific.
Historically, few nations have had as turbulent a history as Vietnam. Throughout the past millennia alone, it has had to grapple with several invading empires, including Mongolians, the Chinese and the French.
Chinese President Xi Jinping and Vietnam's Communist Party General Secretary, Nguyen Phu Trong, attending a ceremony in Hanoi with their wives in December. AFP
Vietnam’s fruitful wooing of global investors, including Big Tech companies from the West and China, is crucial
In its struggle for survival, it was forced to develop a unique set of state institutions that have few parallels in the region. Practically all major South-East Asian kingdoms relied on a “Mandala” system of governance, namely a central authority exercising power through spheres of influence rather than direct control across a vast geographic expanse.
In Vietnam’s northern regions, however, increasingly sophisticated state institutions began to emerge, thus laying down the foundation for the conquest of southern polities, most notably the Indic Champa kingdom half-a-millennia ago.
Contemporary Vietnam often defines itself in opposition to its much larger neighbour, China. The cliche is that it fought an anti-colonial war against the Chinese for “a thousand years”. But as scholars such as Christopher Goscha have argued, Vietnam wouldn’t become a relatively monolithic and coherent nation-state until more recent times. If anything, various kingdoms in northern Vietnam lived, as eminent historian Keith Weller Taylor explains, in peaceful co-existence with China and were even “dependent upon a successful practice of mimicry” of it.
In fact, Vietnam relied on comprehensive Chinese strategic patronage – first under Kuomintang nationalists and later under Maoist forces – throughout the first half of the 20th century in order to drive away western empires from Indochina. And it was Chinese leader Deng Xiaoping’s market reforms that largely inspired Vietnam’s own post-Cold War “Doi Moi” (Renovation) economic liberalisation policies.
Vietnam’s contemporary strategic outlook, however, was shaped by traumatic events during the second half of the 20th century. At the height of the Cold War, and following a string of victories, it suddenly found itself facing both the West and China almost alone. By the 1980s, its Soviet ally was bogged down in Afghanistan, thus leaving Vietnam in a precarious position.
Following the end of the Indochina Wars, Vietnam had its “Never Again” strategic moment. Accordingly, it adopted a fiercely self-reliant national security doctrine that included “Four Nos”: no alliance with any foreign power; not siding with any superpower against the other; no foreign military bases; and no reliance on military force as a primary instrument of foreign policy.
Its pragmatic post-war leaders prioritised reconstruction and economic development and after decades of reforms, a new generation of relatively liberal leaders went so far as pursuing warmer ties with the West, including the US. The upshot was the full normalisation of bilateral ties with America and the gradual emergence of strategic partnerships with major western economies.
Decades after the Vietnam War, the South-East Asian nation is today an attractive destination for overseas investors. Getty Images
It also adopted a proactive trade policy, signing agreements with the US and the EU, and joining the Japan-led Comprehensive and Progressive Agreement for Trans-Pacific Partnership. This went hand-in-hand with closer security co-operation with the US and the EU.
By building robust ties with the West, Vietnam sought to balance a rising China. When a trade war broke out between the world’s two superpowers, however, it emerged as an unlikely beneficiary. The West began relying more on Vietnamese exports amid its decoupling plans from China. Yet Vietnam also began to become more dependent on Chinese intermediate goods, capital and technology for its burgeoning manufacturing base.
The upshot was the emergence of a global pivot state that triggered a wave of courtship by both Washington, which seeks to enlist Vietnam’s support to hem in China, as well as Beijing, which seeks stable ties. By hosting Mr Biden and Mr Xi in quick succession, Hanoi showed a willingness to maximise ties with both superpowers, but it also signalled a determination to preserve its strategic autonomy.
Its communist leadership is intent on keeping a healthy distance from Washington, lest it risks western-backed colour revolutions at home or provoke Beijing. Economic boom in the past decade has birthed an increasingly large and cosmopolitan middle class. As a result, its security establishment is intent on preventing large-scale pro-democracy protests. No wonder, then, that during Mr Biden’s September visit to Hanoi, Vietnamese leaders enthusiastically welcomed expanded economic co-operation but largely shunned tighter military and political entanglements.
Just two months later, Vietnam hosted top Chinese leaders in order to dispel any suspicion of an alignment with the West. During Mr Xi’s visit, the two countries signed a series of co-operative agreements to maintain economic ties. Crucially, however, Vietnam made it clear it won’t sacrifice its territorial and maritime claims in the South China Sea, where it is at loggerheads with Beijing.
Thanks to its deft diplomatic manoeuvres, Vietnam has found itself in a strategic sweet spot. Large-scale investments from both the West and China are fuelling its rapid economic development. These allow it to not only enhance the welfare of its citizens, thus boosting the communist party’s legitimacy, but also provide significant resources for military modernisation.
Without a doubt, the new year will be filled with many geopolitical challenges, especially growing tensions between the US and China. But if there is one middle-sized country in East Asia that has shown an ability to hold its own in the face of manifold geopolitical challenges, that’s Vietnam.
TO A LAND UNKNOWN
Director: Mahdi Fleifel
Starring: Mahmoud Bakri, Aram Sabbah, Mohammad Alsurafa
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
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The flights
Etihad (etihad.com) flies from Abu Dhabi to Mykonos, with a flight change to its partner airline Olympic Air in Athens. Return flights cost from Dh4,105 per person, including taxes.
Where to stay
The modern-art-filled Ambassador hotel (myconianambassador.gr) is 15 minutes outside Mykonos Town on a hillside 500 metres from the Platis Gialos Beach, with a bus into town every 30 minutes (a taxi costs €15 [Dh66]). The Nammos and Scorpios beach clubs are a 10- to 20-minute walk (or water-taxi ride) away. All 70 rooms have a large balcony, many with a Jacuzzi, and of the 15 suites, five have a plunge pool. There’s also a private eight-bedroom villa. Double rooms cost from €240 (Dh1,063) including breakfast, out of season, and from €595 (Dh2,636) in July/August.
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
The language of diplomacy in 1853
Treaty of Peace in Perpetuity Agreed Upon by the Chiefs of the Arabian Coast on Behalf of Themselves, Their Heirs and Successors Under the Mediation of the Resident of the Persian Gulf, 1853
(This treaty gave the region the name “Trucial States”.)
We, whose seals are hereunto affixed, Sheikh Sultan bin Suggar, Chief of Rassool-Kheimah, Sheikh Saeed bin Tahnoon, Chief of Aboo Dhebbee, Sheikh Saeed bin Buyte, Chief of Debay, Sheikh Hamid bin Rashed, Chief of Ejman, Sheikh Abdoola bin Rashed, Chief of Umm-ool-Keiweyn, having experienced for a series of years the benefits and advantages resulting from a maritime truce contracted amongst ourselves under the mediation of the Resident in the Persian Gulf and renewed from time to time up to the present period, and being fully impressed, therefore, with a sense of evil consequence formerly arising, from the prosecution of our feuds at sea, whereby our subjects and dependants were prevented from carrying on the pearl fishery in security, and were exposed to interruption and molestation when passing on their lawful occasions, accordingly, we, as aforesaid have determined, for ourselves, our heirs and successors, to conclude together a lasting and inviolable peace from this time forth in perpetuity.
Taken from Britain and Saudi Arabia, 1925-1939: the Imperial Oasis, by Clive Leatherdale
Nepotism is the name of the game
Salman Khan’s father, Salim Khan, is one of Bollywood’s most legendary screenwriters. Through his partnership with co-writer Javed Akhtar, Salim is credited with having paved the path for the Indian film industry’s blockbuster format in the 1970s. Something his son now rules the roost of. More importantly, the Salim-Javed duo also created the persona of the “angry young man” for Bollywood megastar Amitabh Bachchan in the 1970s, reflecting the angst of the average Indian. In choosing to be the ordinary man’s “hero” as opposed to a thespian in new Bollywood, Salman Khan remains tightly linked to his father’s oeuvre. Thanks dad.
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
More than 2.2 million Indian tourists arrived in UAE in 2023 More than 3.5 million Indians reside in UAE Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Brief scoreline:
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Al Menhali 27', Tagliabue 79'
Al Nassr 3
Hamdallah 41', Giuliano 45 1', 62'
ADCC AFC Women’s Champions League Group A fixtures
October 3: v Wuhan Jiangda Women’s FC October 6: v Hyundai Steel Red Angels Women’s FC October 9: v Sabah FA
- At 9.16pm, three suicide attackers killed one person outside the Atade de France during a foootball match between France and Germany - At 9.25pm, three attackers opened fire on restaurants and cafes over 20 minutes, killing 39 people - Shortly after 9.40pm, three other attackers launched a three-hour raid on the Bataclan, in which 1,500 people had gathered to watch a rock concert. In total, 90 people were killed - Salah Abdeslam, the only survivor of the terrorists, did not directly participate in the attacks, thought to be due to a technical glitch in his suicide vest - He fled to Belgium and was involved in attacks on Brussels in March 2016. He is serving a life sentence in France
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
UAE squad: Mohammed Naveed (captain), Rohan Mustafa, Ashfaq Ahmed, Shaiman Anwar, Mohammed Usman, CP Rizwan, Chirag Suri, Mohammed Boota, Ghulam Shabber, Sultan Ahmed, Imran Haider, Amir Hayat, Zahoor Khan, Qadeer Ahmed
Some of Darwish's last words
"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
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Flexible work arrangements
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Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
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Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
