Vietnam Strengthens Ties with China, Embracing Governance Model Amid Rising State Control

HANOI – Vietnam is increasingly aligning itself with China’s governance model, tightening state control while integrating Chinese technology and regulatory frameworks. This shift comes as Vietnam’s most powerful leader in decades, To Lam, prepares for a significant visit to Beijing this week.

The historical relationship between the two Communist neighbors has oscillated between conflict and cooperation. Currently, Vietnam is openly gravitating toward Beijing, particularly as pro-China security figures gain influence in Hanoi under Lam, who previously held the position of public security chief.

Lam’s upcoming meeting with Chinese leader Xi Jinping on Wednesday marks his first overseas trip since assuming the presidency on April 7. This visit consolidates two of Vietnam’s most influential roles, mirroring Xi’s own consolidation of power and diverging from Vietnam’s traditional focus on collective leadership.

“Vietnam-China relations have entered a new stage, marked by higher political trust, more substantive defense and security cooperation, and deeper collaboration across various sectors,” Lam stated in a joint declaration with Xi following their previous meeting in April 2025.

This week’s diplomatic engagement is anticipated to result in numerous cooperation agreements. While many of these documents may be non-binding, the relationship is becoming increasingly substantive. China’s exports to Vietnam have reached record levels, and Chinese investment in manufacturing within Vietnam is flourishing.

Despite this growing alignment, analysts indicate that Vietnam is still strategically hedging its geopolitical stance, maintaining connections with Washington and other nations. However, domestically, the country is gravitating closer to China’s governance model, particularly in terms of regulatory control, despite concerns from Western nations. This trend highlights the deepening influence of China as Lam reshapes Vietnam’s state apparatus.

Nguyen Khac Giang, a visiting fellow at Singapore’s ISEAS Yusof Ishak Institute, noted that Vietnam is adopting a dual approach, actively learning from the Chinese model while selectively resisting its influence. Alexander Vuving from the Asia-Pacific Center for Security Studies in the U.S. cautioned that closer ties with China, without sufficient safeguards, could adversely affect Vietnam’s security, prosperity, and autonomy, as well as its relations with the U.S. and the West.

Vietnam’s foreign ministry has not yet responded to requests for comment.

Technology and State Control

Technology has emerged as a significant indicator of the warming ties between Vietnam and China. The country has eased earlier reservations regarding the use of Chinese equipment in its 5G network. Vietnam’s largest internet provider, FPT, has announced investments in an undersea cable to be constructed by a Chinese vendor linked to the sanctioned telecom giant Huawei. Additionally, a telecom company under Vietnam’s public security ministry is negotiating further 5G agreements with Chinese firms. Chinese companies are also exploring investments in Vietnamese data centers, which are considered strategic assets.

Mickael Driol, head of investment advisory firm Mekong Partners, noted a marked increase in Chinese interest in Vietnam’s data center market over the past 18-24 months, largely driven by manufacturers relocating operations from China to Vietnam.

Hanoi is prioritizing state control in data regulation, mirroring China’s approach. Western tech companies and the U.S. government have raised concerns about Vietnam’s data protection rules, which are being drafted by the security ministry and restrict cross-border data transfers.

Draft documents reviewed indicate that Vietnam plans to establish state-run data-trading exchanges overseen by the public security ministry. This mirrors China’s centralized data model and enhances the state’s capacity to utilize information for surveillance and strategic objectives. In contrast, such platforms in Western markets are typically privately operated.

Vietnam is also expanding its national electronic identification system, allowing authorities to identify individuals through AI camera networks being deployed nationwide, further paralleling China’s surveillance infrastructure.

Giang remarked that the increasing power of police in Vietnam may partly explain the growing interest in Chinese-style social control tactics.

Economic Modeling After China

The Vietnamese Communist Party is advancing an economic model reminiscent of China’s, focusing on subsidies, public investment, and large infrastructure projects. This shift often occurs in direct collaboration with Beijing on sensitive initiatives, including high-speed rail links.

The popularity of platforms like TikTok in Vietnam has contributed to a more favorable narrative about China, while Hanoi’s criticism of Beijing’s actions in the disputed South China Sea has become increasingly muted.

While Vietnam remains more open to foreign investors compared to China and continues to rely heavily on external capital, the share of total investments from China is rising, and Chinese brands are gaining traction domestically.

China’s influence is also evident in Vietnam’s financial practices. The country employs unconventional monetary policy tools, such as lending mandates to banks, which resemble Chinese policies. It maintains strict foreign ownership caps in key sectors and is facing a property bubble similar to China’s experience.

Hanoi is now contemplating deeper intervention in equity markets, with proposed measures including a government-backed stabilization fund to purchase stocks during downturns, an approach explicitly modeled on China’s strategy. An internal security ministry document indicated that “China created one and succeeded in reassuring investors.”

Source: www.zawya.com

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Published on 2026-04-14 08:16:00 • By the Editorial Desk