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Vietnam imposes a tougher line on ASEAN regarding militarization of the South China Sea and island building

ASEAN overcomes communique impasse, urges non-militarisation in South China Sea

https://www.reuters.com/article/us-asean-philippines-southchinasea-state-idUSKBN1AM0IR

South Korean Foreign Minister Kang Kyung-wha (C) links hands with ASEAN foreign ministers and their representatives as they take part in the ASEAN-Republic of Korea (ROK) Ministerial Meeting in Philippine International Convention Center in Pasay city, metro Manila, Philippines August 6, 2017.Noel Celis/Pool

MANILA (Reuters) - Southeast Asian foreign ministers ended an impasse on Sunday over how to address disputes with China in the South China Sea, issuing a communique that called for militarization to be avoided and noting concern about island-building.

The South China Sea has long been the most divisive issue for the Association of South East Asian Nations (ASEAN), with China's influence looming large over its activities. Some countries are wary about the possible repercussions of defying Beijing by taking a stronger stand.

ASEAN failed to issue the customary statement on Saturday, over what diplomats said was disagreement about whether to make oblique references to China's rapid expansion of its defense capabilities on artificial islands in disputed waters.

China is sensitive to even a veiled reference by ASEAN to its seven reclaimed reefs, three of which have runways, missile batteries, radars and, according to some experts, the capability to accommodate fighter jets.

The communique late on Sunday takes a stronger position than an earlier, unpublished draft, which was a watered-down version of one issued last year in Laos.

The agreed text "emphasized the importance of non-militarisation and self-restraint".

It said that after extensive discussions, concerns were voiced by some members about land reclamation "and activities in the area which have eroded trust and confidence, increased tension and may undermine peace, security and stability".

ASEAN's deadlock over the statement highlights China's growing influence on the grouping at a time of uncertainty over the new U.S. administration's security priorities and whether it will try to keep China's maritime activities in check.

Several ASEAN diplomats said that among the members who pushed for a communique that retained the more contentious elements was Vietnam, which has competing claims with China over the Paracel and Spratly archipelago and has had several spats with Beijing over energy concessions.

Another diplomat, however, said there was no real disagreement on the contents of the communique and stressed that the initial draft was seen by some members as weak.

Also on Sunday the foreign ministers of ASEAN and China adopted a negotiating framework for a code of conduct in the South China Sea, a move they hailed as progress but seen by critics as a tactic to buy China time to consolidate its maritime power.

Reporting by Martin Petty and Manuel Mogato; Editing by Gareth Jones
 
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Vietnam challenges China in Asean talks
06viet2-1024x714.jpg

OF TWO MINDS Foreign Secretary Alan Peter Cayetano and Vietnam Foreign Minister Pham Binh Minh in a huddle during a break in the Association of Southeast Asian Nations plenary session in Manila. —POOL PHOTO

Vietnam has made a bold move against China at the annual foreign ministers’ meeting of the Association of Southeast Asian Nations (Asean) and pushed for a stronger stand against Chinese expansionism in the South China Sea.

Hanoi made its move in unscheduled and informal talks late on Friday night when it asked to insert tough language against Beijing in the usual communique that the regional bloc releases after top-level meetings.

The communique had not been released at press time, but according to a copy of a draft obtained by Agence France-Presse (AFP), Vietnam lobbied for the Asean to express “serious concern” over China’s ramped-up construction of artificial islands in the disputed waters.

Vietnam also wanted the Asean to insist in the communique that the planned code of conduct in the South China Sea among claimant-nations be legally binding, which Beijing opposed.

“The discussions were really hard. Vietnam is on its own to have stronger language on the South China Sea. Cambodia and the Philippines are not keen to reflect that,” one diplomat involved in the talks told AFP.

Alongside Vietnam, the Philippines used to be the most vocal critic of Beijing’s expansionism.

But under President Rodrigo Duterte, the Philippines has sought to downplay the dispute with China in return for billions of dollars in Chinese investments and aid.

VIDEO : China sets conditions for start of talks on sea feud code

Diplomatic maneuvering

China has in recent years also successfully lobbied other Asean nations, particularly Cambodia, to support its diplomatic maneuvering in the dispute.

Various diplomats said Vietnam was likely to lose its battle to insert the strong language against China, with the Philippines as host of the talks wielding greater influence.

The bloc instead released a separate statement strongly urging North Korea to comply with UN resolutions on its nuclear tests and program.

The Asean is set this weekend to adopt a framework for a code of conduct with China, which is meant to pave the way for more concrete action.

But security analysts point out that the framework comes 15 years after negotiations on the issue first began, and China has used that time to cement its claims with the artificial islands.

Hanoi made its move at the Asean meeting a day after it suspended a gas-drilling project in the South China Sea that it had earlier approved but was said to have irritated Beijing.

The project, involving a subsidiary of the Spanish energy company Repsol, started in June off the southern Vietnamese coast, analysts said.

The offshore block where the drilling was occurring straddles the border of Vietnam’s 200-nautical-mile exclusive economic zone but is challenged by China.

Analysts say the project’s suspension, which Repsol confirmed to Reuters on Wednesday, appears to be another strategic victory for China.

It also highlights the difficulty that Hanoi faces as it mounts challenges to Beijing’s claims to the South China Sea — without much help from its neighbors in Southeast Asia or from Washington.

Vietnam’s leaders “can try their best to deter the Chinese” in the South China Sea, said Gregory B. Poling, a fellow in the Southeast Asia program at Center for Strategic and International Studies in Washington.

“But when the Chinese push back hard, like they just did, the Vietnamese are out on a limb all by themselves,” he said.

Peaceful means

In an e-mailed response to questions about the Repsol project and Vietnam’s strategic priorities in the South China Sea, Le Thi Thu Hang, a spokesperson for Vietnam’s foreign ministry, said the country supported the settlement of any disputes in the sea by peaceful means and according to international law.

“Vietnam calls on relevant parties to respect the legitimate rights and interests of Vietnam and make positive and practical contributions to peace and cooperation in the East Sea,” she said, using the Vietnamese term for the South China Sea.

Unlike the Philippines and Japan, Vietnam is not a treaty ally of the United States, meaning Washington is not legally obligated to protect it in the event of an attack.

Poling said Hanoi found itself isolated on South China Sea policy in part because it was unsure how the Trump administration would react if a conflict escalated there.

“I think it’s fair to say the Vietnamese are still not entirely confident” that the administration cares about the South China Sea the way that the Obama administration did, he said.

Vietnam’s strategic isolation worsened as the Philippines warmed to China since Mr. Duterte came to power in June 2016.

In July last year, the Philippines won a landmark case when an international tribunal ruled that Beijing’s claim to sovereignty over most of the sea had no legal basis.

Vietnam saw the ruling as a giant step toward its decadeslong goal of creating a unified diplomatic front against Chinese territorial encroachment in the South China Sea.

But Mr. Duterte appeared to undercut the victory last year by saying he favored direct talks with China over territorial disputes.

Eufracia Taylor, a political analyst based in Singapore at the British risk consultancy Verisk Maplecroft, said that while Vietnam and the Philippines were once “in the same boat” on South China Sea policy under Mr. Duterte’s predecessor, President Benigno S. Aquino III, bilateral relations had deteriorated since Mr. Duterte took office. Reports from AFP and New York Times
 
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Yep, VN spies are simply Perfect , CIA admit that after VN war.
Germany and Japan lost the war at sea because their secret marine codes were compromised by their allies. There is the way to go for VN: cracking the code.
 
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Vietnam challenges China in Asean talks
06viet2-1024x714.jpg

OF TWO MINDS Foreign Secretary Alan Peter Cayetano and Vietnam Foreign Minister Pham Binh Minh in a huddle during a break in the Association of Southeast Asian Nations plenary session in Manila. —POOL PHOTO

Vietnam has made a bold move against China at the annual foreign ministers’ meeting of the Association of Southeast Asian Nations (Asean) and pushed for a stronger stand against Chinese expansionism in the South China Sea.

Hanoi made its move in unscheduled and informal talks late on Friday night when it asked to insert tough language against Beijing in the usual communique that the regional bloc releases after top-level meetings.

The communique had not been released at press time, but according to a copy of a draft obtained by Agence France-Presse (AFP), Vietnam lobbied for the Asean to express “serious concern” over China’s ramped-up construction of artificial islands in the disputed waters.

Vietnam also wanted the Asean to insist in the communique that the planned code of conduct in the South China Sea among claimant-nations be legally binding, which Beijing opposed.

“The discussions were really hard. Vietnam is on its own to have stronger language on the South China Sea. Cambodia and the Philippines are not keen to reflect that,” one diplomat involved in the talks told AFP.

Alongside Vietnam, the Philippines used to be the most vocal critic of Beijing’s expansionism.

But under President Rodrigo Duterte, the Philippines has sought to downplay the dispute with China in return for billions of dollars in Chinese investments and aid.

VIDEO : China sets conditions for start of talks on sea feud code

Diplomatic maneuvering

China has in recent years also successfully lobbied other Asean nations, particularly Cambodia, to support its diplomatic maneuvering in the dispute.

Various diplomats said Vietnam was likely to lose its battle to insert the strong language against China, with the Philippines as host of the talks wielding greater influence.

The bloc instead released a separate statement strongly urging North Korea to comply with UN resolutions on its nuclear tests and program.

The Asean is set this weekend to adopt a framework for a code of conduct with China, which is meant to pave the way for more concrete action.

But security analysts point out that the framework comes 15 years after negotiations on the issue first began, and China has used that time to cement its claims with the artificial islands.

Hanoi made its move at the Asean meeting a day after it suspended a gas-drilling project in the South China Sea that it had earlier approved but was said to have irritated Beijing.

The project, involving a subsidiary of the Spanish energy company Repsol, started in June off the southern Vietnamese coast, analysts said.

The offshore block where the drilling was occurring straddles the border of Vietnam’s 200-nautical-mile exclusive economic zone but is challenged by China.

Analysts say the project’s suspension, which Repsol confirmed to Reuters on Wednesday, appears to be another strategic victory for China.

It also highlights the difficulty that Hanoi faces as it mounts challenges to Beijing’s claims to the South China Sea — without much help from its neighbors in Southeast Asia or from Washington.

Vietnam’s leaders “can try their best to deter the Chinese” in the South China Sea, said Gregory B. Poling, a fellow in the Southeast Asia program at Center for Strategic and International Studies in Washington.

“But when the Chinese push back hard, like they just did, the Vietnamese are out on a limb all by themselves,” he said.

Peaceful means

In an e-mailed response to questions about the Repsol project and Vietnam’s strategic priorities in the South China Sea, Le Thi Thu Hang, a spokesperson for Vietnam’s foreign ministry, said the country supported the settlement of any disputes in the sea by peaceful means and according to international law.

“Vietnam calls on relevant parties to respect the legitimate rights and interests of Vietnam and make positive and practical contributions to peace and cooperation in the East Sea,” she said, using the Vietnamese term for the South China Sea.

Unlike the Philippines and Japan, Vietnam is not a treaty ally of the United States, meaning Washington is not legally obligated to protect it in the event of an attack.

Poling said Hanoi found itself isolated on South China Sea policy in part because it was unsure how the Trump administration would react if a conflict escalated there.

“I think it’s fair to say the Vietnamese are still not entirely confident” that the administration cares about the South China Sea the way that the Obama administration did, he said.

Vietnam’s strategic isolation worsened as the Philippines warmed to China since Mr. Duterte came to power in June 2016.

In July last year, the Philippines won a landmark case when an international tribunal ruled that Beijing’s claim to sovereignty over most of the sea had no legal basis.

Vietnam saw the ruling as a giant step toward its decadeslong goal of creating a unified diplomatic front against Chinese territorial encroachment in the South China Sea.

But Mr. Duterte appeared to undercut the victory last year by saying he favored direct talks with China over territorial disputes.

Eufracia Taylor, a political analyst based in Singapore at the British risk consultancy Verisk Maplecroft, said that while Vietnam and the Philippines were once “in the same boat” on South China Sea policy under Mr. Duterte’s predecessor, President Benigno S. Aquino III, bilateral relations had deteriorated since Mr. Duterte took office. Reports from AFP and New York Times
Like I said, Vietnamese are stubborn and not easy to be defeated
 
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The army should develop a robot version with mounted antitank RPG29.

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Like I said, Vietnamese are stubborn and not easy to be defeated

Well said sister Xiao and here are some more news:

China Cancels Vietnam Meeting Over South China Sea Spat
More stories by Keith ZhaiAugust 7, 2017, 4:13 PM GMT+7

https://www.bloomberg.com/news/arti...cel-vietnam-meeting-over-south-china-sea-spat

China’s Foreign Minister Wang Yi canceled a scheduled one-on-one meeting with his Vietnamese counterpart in Manila at the last minute on Monday due to a spat over the South China Sea, according to people familiar with the situation.

China was upset over the wording of a communique released by foreign ministers of the Association of Southeast Asian Nations on Sunday night that expressed concern over land reclamation on disputed islands, according to the people, who asked not to be identified because the information isn’t public. China saw Vietnam as pushing for that language to be included in the statement, they said.

The statement said that some of Asean’s 10 foreign ministers expressed concern “on the land reclamations and activities in the area, which have eroded trust and confidence, increased tensions and may undermine peace, security and stability in the region.” Vietnam Foreign Minister Pham Binh Minh is among top diplomats from more than 20 countries attending meetings in Manila this week.

A spokesman with the Chinese delegation suggested that the one-on-one meeting wasn’t the only opportunity where the ministers could’ve had discussions. The two both participated in other multilateral meetings in Manila, including one between China and the 10 Asean ministers.

Rising Tensions
“The two have already met,” said the spokesman, without making further comment. Vietnam’s foreign ministry didn’t immediately respond to faxed questions about the meeting.

Tensions between China and Vietnam have increased in recent months over disputed territory in areas of the South China Sea that are rich in oil and gas. In June, a Spanish oil company reportedly stopped drilling off of Vietnam’s coast after threats from China.

China’s efforts to assert its dominance over the South China Sea, one of the world’s busiest shipping lanes that carries more than $5 trillion in annual trade, have in the past angered Southeast Asian nations with competing claims such as Vietnam and the Philippines. The waterway has become a flash-point in a broader tussle for regional influence between China and the U.S. in Asia.

China has used land reclamation to build up islands and construct airports to back its claim of much of the waters off its coast. In 2016, an international court rejected China’s bid to secure rights to more than 80 percent of the South China Sea.

The BBC reported last month that Vietnam had ordered Repsol SA, a Madrid-based oil-and-gas company, to halt activities in the South China Sea after China threatened to attack Vietnamese bases in the Spratly Islands. The company confirmed last week that it had suspended drilling in Vietnam, without providing further details.

In a July 29 statement, Vietnam asked parties to respect its petroleum rights in the South China Sea. Asked whether China had ever pressured Vietnam to stop drilling, foreign ministry spokesman Lu Kang said that China has indisputable sovereignty over the Spratly Islands and urged against unilateral actions in the area.
 
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Well said sister Xiao and here are some more news:

China Cancels Vietnam Meeting Over South China Sea Spat
More stories by Keith ZhaiAugust 7, 2017, 4:13 PM GMT+7

https://www.bloomberg.com/news/arti...cel-vietnam-meeting-over-south-china-sea-spat

China’s Foreign Minister Wang Yi canceled a scheduled one-on-one meeting with his Vietnamese counterpart in Manila at the last minute on Monday due to a spat over the South China Sea, according to people familiar with the situation.

China was upset over the wording of a communique released by foreign ministers of the Association of Southeast Asian Nations on Sunday night that expressed concern over land reclamation on disputed islands, according to the people, who asked not to be identified because the information isn’t public. China saw Vietnam as pushing for that language to be included in the statement, they said.

The statement said that some of Asean’s 10 foreign ministers expressed concern “on the land reclamations and activities in the area, which have eroded trust and confidence, increased tensions and may undermine peace, security and stability in the region.” Vietnam Foreign Minister Pham Binh Minh is among top diplomats from more than 20 countries attending meetings in Manila this week.

A spokesman with the Chinese delegation suggested that the one-on-one meeting wasn’t the only opportunity where the ministers could’ve had discussions. The two both participated in other multilateral meetings in Manila, including one between China and the 10 Asean ministers.

Rising Tensions
“The two have already met,” said the spokesman, without making further comment. Vietnam’s foreign ministry didn’t immediately respond to faxed questions about the meeting.

Tensions between China and Vietnam have increased in recent months over disputed territory in areas of the South China Sea that are rich in oil and gas. In June, a Spanish oil company reportedly stopped drilling off of Vietnam’s coast after threats from China.

China’s efforts to assert its dominance over the South China Sea, one of the world’s busiest shipping lanes that carries more than $5 trillion in annual trade, have in the past angered Southeast Asian nations with competing claims such as Vietnam and the Philippines. The waterway has become a flash-point in a broader tussle for regional influence between China and the U.S. in Asia.

China has used land reclamation to build up islands and construct airports to back its claim of much of the waters off its coast. In 2016, an international court rejected China’s bid to secure rights to more than 80 percent of the South China Sea.

The BBC reported last month that Vietnam had ordered Repsol SA, a Madrid-based oil-and-gas company, to halt activities in the South China Sea after China threatened to attack Vietnamese bases in the Spratly Islands. The company confirmed last week that it had suspended drilling in Vietnam, without providing further details.

In a July 29 statement, Vietnam asked parties to respect its petroleum rights in the South China Sea. Asked whether China had ever pressured Vietnam to stop drilling, foreign ministry spokesman Lu Kang said that China has indisputable sovereignty over the Spratly Islands and urged against unilateral actions in the area.
obviously there is nothing more to talk nor discuss. everything is said.
 
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Beijing sets conditions for new South China Sea code of conduct- Nikkei Asian Review
https://asia.nikkei.com/Politics-Ec...tions-for-new-South-China-Sea-code-of-conduct

MANILA -- The Association of Southeast Asian Nations and China may start actual negotiations in November on a code of conduct to help resolve complex territorial disputes in the South China Sea -- provided that the situation is calm and "outside parties" stop interfering, Chinese Foreign Minister Wang Yi said here on Sunday.

"When the situation in the South China Sea is generally stable, and if there is no major disruption from outside parties as the precondition, then we will consider during the November leaders' meeting -- we will jointly announce -- the official start of the COC conversation," Wang told reporters after meeting with his ASEAN counterparts.

Using its unilateral "nine-dash line," China has laid claim to almost the entire South China Sea, including areas ASEAN members Brunei, Indonesia, Malaysia, the Philippines and Vietnam claim as parts of their respective exclusive economic zones. Taiwan also has conflicting maritime claims with China.

Wang's conditions continue to bring into question China's commitment to formulating a long-awaited effective code of conduct. ASEAN diplomats have previously accused China of stalling a process already embodied in the 2002 Declaration on the Conduct of Parties in the South China Sea.

Ministers from ASEAN and China have agreed to a framework for establishing a code of conduct. Robespierre Bolivar, a Philippine foreign ministry spokesperson, confirmed that ASEAN has accepted China's three-step proposal on how to proceed, beginning with announcement of the adoption of the code's framework in a joint communique released Sunday night. This will be followed up with talks by the end of this month on how negotiations should proceed, and a formal announcement will be made at the ASEAN summit in November.

"The foreign ministers of ASEAN and China have in fact agreed on this three-step process," Bolivar said. "There is a consensus between ASEAN and China."

The adoption of the framework marks the start of what are expected to be thorny negotiations, including about whether the code of conduct should be legally binding. ASEAN would want a legally binding code, but China prefers otherwise.

Speaking in Manila on July 25, Wang said the more stable environment in the South China Sea was partly due to the new diplomatic approach adopted by the Philippines after President Rodrigo Duterte came into office last year. Duterte's predecessor, President Benigno Aquino, had taken a much more litigious tack that included successfully petitioning a tribunal set up under the auspices of the Permanent Court of Arbitration at The Hague in the Netherlands.

China has never recognized that body's jurisdiction in the dispute. Last month, Wang urged ASEAN members to reject unnamed "nonregional forces" that he alleged want to stir up trouble in the South China Sea. The U.K., meanwhile, has plans for freedom-of-navigation exercises in the South China Sea -- following the examples of both Japan and the U.S.

While supporters of the ASEAN-China agreement regard it as a belated step forward, critics say it offers little fundamentally new from the nonbinding and ignored 2002 declaration. The latest framework has not been made public, but a leaked document says that the code is "not an instrument to settle territorial disputes or maritime delimitation issues."
 
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Australia-Japan-United States demand legally binding code of conduct for SCS

Joint Statement of Australia-Japan-United States Trilateral Strategic Dialogue
Posted by Research Asssisant ⋅ August 7, 2017
Source: Australian Minister for Foreign Affairs

7 August 2017

https://seasresearch.wordpress.com/...-united-states-trilateral-strategic-dialogue/


The Ministers for Foreign Affairs of Australia, Julie Bishop, the Minister for Foreign Affairs of Japan, Taro Kono, and the Secretary of State of the United States, Rex Tillerson, met in Manila, the Philippines, on August 7, 2017, for the 7th ministerial meeting of the Trilateral Strategic Dialogue. The following is the full text of the joint statement issued after the meeting. Specifically on the South China Sea and maritime security issues, the joint statement says:

The Ministers underscored the importance of upholding the rules-based order, called on all states to respect freedom of navigation and overflight and other internationally lawful uses of the seas, and reiterated that the three countries will continue to fly, sail, and operate wherever international law allows.

The Ministers expressed serious concerns over maritime disputes in the South China Sea (SCS). The Ministers voiced their strong opposition to coercive unilateral actions that could alter the status quo and increase tensions. In this regard, the Ministers urged SCS claimants to refrain from land reclamation, construction of outposts, militarization of disputed features, and undertaking unilateral actions that cause permanent physical change to the marine environment in areas pending delimitation. The Ministers called on all claimants to make and clarify their maritime claims in accordance with the international law of the sea as reflected in the 1982 United Nations Convention on the Law of the Sea (UNCLOS) and to resolve disputes peacefully in accordance with international law. The Ministers called on China and the Philippines to abide by the Arbitral Tribunal’s 2016 Award in the Philippines-China arbitration, as it is final and legally binding on both parties. The Ministers noted the significance of the UNCLOS dispute settlement regime and the Tribunal’s decision in discussions among parties in their efforts to peacefully resolve their maritime disputes in the SCS. The Ministers urged ASEAN member states and China to fully and effectively implement the 2002 Declaration on the Conduct of Parties in the South China Sea (DOC). The Ministers acknowledged the announced consensus on a framework for the Code of Conduct for the South China Sea (COC). The Ministers further urged ASEAN member states and China to ensure that the COC be finalized in a timely manner, and that it be legally binding, meaningful, effective, and consistent with international law.

The Ministers welcomed the development of trilateral cooperation on capacity building for maritime security and safety in Southeast Asia. The Ministers resolved to advance and build on this cooperation through ongoing exchanges of information and dialogue on regional needs. The Ministers reiterated the commitment of the three nations to continue coordinating their respective assistance programs and to identify ways they can more closely collaborate in the future.

The Ministers expressed strong opposition to any coercive or unilateral actions that could alter the status quo and increase tensions in the East China Sea and will remain in close communication about developments in the area.

———-

Related documents:

Treaties, Agreements and Joint Statements:

https://seasresearch.wordpress.com/...nts/treaties-agreements-and-joint-statements/
 
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a news from the country of rising sun:

the number of Vietnamese students working in Japan (74,500 in 2016) has surpassed that of China. Probably the reason why China’s Foreign Minister Wang Yi is angry, he canceled a scheduled one-on-one meeting with his Vietnamese counterpart in Manila at the last minute.

http://the-japan-news.com/news/article/0003810801

upload_2017-8-7_16-47-8.png



53117626121e80a8e2998046a7b57085.jpg
 
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a news from the country of rising sun:

the number of Vietnamese students working in Japan (74,500 in 2016) has surpassed that of China. Probably the reason why China’s Foreign Minister Wang Yi is angry, he canceled a scheduled one-on-one meeting with his Vietnamese counterpart in Manila at the last minute.

http://the-japan-news.com/news/article/0003810801

View attachment 416719


53117626121e80a8e2998046a7b57085.jpg

Japanese is too old to work, many of my neighbors choose to come to Japan and Korea instead of working for a Vietnamese company. Simply the salary is bigger than so much though they must go away their family. People who worked for Korean usually richer than. The Japanese need to increase their population.Im thinking about to work in Japan as the best way to help family although:enjoy: the cost to come to Japan is not cheap ( 15.000 USD or more than)
 
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AUSTRALIAN BUSINESS RATES VIETNAM AS NO. 1 FOR EXPANSION ACCORDING TO AUSTRALIAN BUSINESS IN ASEAN SURVEY 2017
https://auschamvn.org/australian-bu...-to-australian-business-in-asean-survey-2017/

ASEAN-Survey-630x260.jpg

Australian Business Asia (of which AusCham is a founding Member) has just launched the 2017 issue of the Australian Business in ASEAN Survey in Singapore (27 July 2017). Among the survey’s findings is that “for firms seeking to expand, Vietnam is now the most popular destination overtaking Myanmar with Indonesia, the Philippines and Thailand also sought after markets for expansion”.

  • To download the original and complete survey, click here.
A copy of the Executive Summary has been reproduced below.

Australian businesses continue to provide a strong contribution across ASEAN and are generally positive about their ability to prosper in the region. The second iteration of the Australian Business in ASEAN Survey revealed that while the challenges remain, firms continue to enter the region and many are actively planning to enter new markets in the next few years to respond to the opportunities inherent in ASEAN’s emergence building on the decades of experience that the Australian business community has in the region.

While Australian business operations in the region continue to be dominated by services firms, there remains some diversity with property, construction and infrastructure and manufacturing making the top five industries represented. It appears that many of the micro and small businesses have grown in the region with a greater proportion of medium sized firms in this year’s survey, although the Australian business community still comes in all shapes and sizes. These firms continue to maintain strong links with with more than half having Australian ownership and more than 70 per cent who have ownership or heritage.

The strategic location of ASEAN nations is strongly recognised by firms operating in the region with almost a third utilising operations as their global headquarters. A further third have established broader regional headquarters in the region.

For firms seeking to expand, Vietnam is now the most popular destination overtaking Myanmar with Indonesia, the Philippines and Thailand also sought after markets for expansion. Improvement in infrastructure has overtaken regional integration as the second most important reason for expanding in the region. However, more than 60 per cent of firms continue to identify the growing consumer class as a primary motivation. the potential for business conduct conflicts is now seen as the major challenge of operating in the region, with barriers to ownership and investment and lack of access to skilled labour rounding out the top three.

Download the survey results

To download the full survey results, click here.

 
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Vietnam could do the same:

Indonesia offers coffee, tea & palm oil in exchange for Russian fighter jets
Published time: 7 Aug, 2017 14:51
59887ac1dda4c80d1b8b4567.jpg



China buys 24 advanced Russian Su-35 warplanes in estimated $2bn landmark deal

“This barter under the supervision of both governments hopefully will soon be realized through the exchange of 11 Sukhoi Su-35s and a number of Indonesian exports, starting from coffee and tea to palm oil and strategic defense products,” Indonesian Trade Minister Enggartiasto Lukita said on Monday, as quoted by Reuters.

Russian state-run corporation Rostec signed a memorandum of understanding for the deal with Indonesian state trading company PT Perusahaan Perdagangan Indonesia. Rostec says it is committed to implement the terms of a counter trade program.

At the same time, the Russian corporation reserves the option to choose which goods it receives in trade from Indonesia as well as the right to pick trade partners and producers for cooperation under the agreement, according to Rostec.

“The deal allows expanding supplies of Indonesian goods that are the most easily-suited for the Russian market. The range of products will be discussed by members of a specially created advisory group,” the company’s press release reads.

Indonesia already operates 16 Sukhoi jets, bought in 2003, when it was subject to a US and EU embargo on arms sales amid the alleged military's human rights abuses in East Timor in 1999.

The Su-35 is a long-range '4++ generation' super-maneuverable fighter jet. It is armed with an internal 30mm cannon and has 12 hard points with a combined capacity of 8,000kg, compatible with a wide range of unguided and guided missiles and bombs. Its maximum speed is 2,500 km/h, with a range of 3,400km, and a combat radius of around 1,600km.

Jakarta is trying to promote its palm oil products amid decreasing demand in Europe. Indonesia is the world’s number one producer of the commodity, which is widely used in cooking, cosmetics and biofuel.

Trade between Russia and Indonesia, the largest economy in Southeast Asia, has fallen in recent years, but Lukita said the wide-ranging US and EU financial and trade sanctions against Russia are an opportunity for Indonesia to revive trade through barter deals in other industries.

“This is an opportunity that should not be lost from our grasp,” said Trade Ministry spokesman Marolop Nainggolan, as quoted by AP.
 
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