The euphoria about the Belt and Road Initiative (BRI) in Indonesia and elsewhere in South and Southeast Asia (SEA) has been felt since 2017, particularly following the country’s participation in the BRI Summit in Beijing that year, where Indonesia (along with other SAARC and ASEAN member states) was expected to receive massive investments from China to support several infrastructure projects.
This year, the debates concerning the BRI are again becoming prevalent after Indonesia’s Coordinating Minister for Maritime Affairs Luhut Binsar Panjaitan as Indonesia’s representative signed 28 BRI projects last April. Among the various debated subjects is the growing concern about the real nature of the BRI. Is that a Chinese developmental initiative or a geopolitical instrument that uses debt-trap as a tool to bring targeted countries into the desired terms.
The BRI as Chinese debt trap
In the realisation of the BRI, China is targeted to spend US $ 4.4 trillion (Rp 62.7 thousand trillion) which is divided into various infrastructure projects in 65 countries. The funds from China will be disbursed from three main institutions, namely the Export-Import Bank of China, the Asia Infrastructure Investment Bank and the Silk Road Fund. However, the implementation of the BRI caused various kinds of controversy, one of which was related to the fear of a debt trap.
Sri Lanka is one of the BRI participating countries that must give up on China’s debt. The Mattala Rajapaksa International Airport (MRIA) project in Sri Lanka which costed US $ 190 million (Rp 2.7 trillion) with an interest of 6.3 percent did not benefit from the airport’s operations.
As a result, the Sri Lankan government is losing money. This made the country unable to pay debts to China. The inability to pay credit or interest, at the end of June 2016, led Sri Lanka to make an agreement with China in the form of equity (surrendering land for lease) for 99 years to the country.
According to a well-known SAARC strategic analyst based in India, Brahma Chellaney, what China does with its BRI is a debt-trap diplomacy effort, where this type of diplomacy is a bilateral relationship that is interwoven on the basis of debt. In its operations, this type of diplomacy involves a creditor country that deliberately extends excessive credit to the debtor country. If the debtor country cannot fulfill its debt obligations, often the creditor country will make it possible to interfere with economic and political conditions in the debtor country.
Acknowledging this, Malaysian Prime Minister Mahathir Mohamad in August 2018 said his country would stop funding-backed projects from China, including a railway line worth US $ 20 billion as there is a possibility that the country would be trapped in huge debts.
“We should avoid binary categorisations… However, a bilateral approach in developmental strategies historically does not bring back satisfactory results. Besides the Bretton Woods instruments – often enveloped in controversies, do not forget developmental champions. All of them are multilateral institutions of fair conditionalities, of balanced and transparent instruments: UNIDO, ADB, but also Islamic Development Bank, OFID or UNCTAD. If not a loan, ask them at least for advice”, prof. Anis H. Bajrektarevic reminded us recently in Kuala Lumpur at the Economic Forum.
Indonesia and lessons from Malaysia
The same concern is also prevalent in Indonesia, given that the country, in the midst of many of its own problems, the government seemed to be incessantly ambitious to continue to take part in the BRI. It is important to remember that currently Indonesia’s external debt has reached US$387.6 billion at the first quarter of 2019. It consists of government and central bank external debts of US$190.5 billion that have slightly rose by 3.1 percent (year-on-year) and private external debts of US$197.1 bilion that have rocketed by 12.8 percent (year-on-year).
Although the ratio of Indonesia’s external debt to Gross Domestic Product (GDP) is relatively safe at the level 36.9 percent and S&P Global Rating has just raised the long-term sovereign credit ratio for Indonesia from “BBB-“ to “BBB”, the Indonesia’s economic foundation is very fragile.
In 2018, for instance, the massive capital outflow made significant depreciation of the Rupiah against the US dollar due to the hike of Fed Fund Rates and the contagion of Turkish lira crisis. The currency hit about 15,000 rupiah against the greenbacks, the lowest level since the 1998 financial crisis, and made it one of the worst performing currencies in the region.
The extreme volatility of the Rupiah causes payments of interests and foreign debts more expensive. The 1998 financial crisis provided a precious experience that many companies faced default and the country’s economy experience chaos with economic growth of -13.1%. With such conditions, how come Indonesia dear to magnify its debts by signing massive BRI projects?
There is also a concern that the BRI projects is, instead of profiting Indonesia, putting the country at a disadvantage. One example comes from the Palembang LRT project, which has the same potential as the airport in Sri Lanka, is empty with little visitors. In fact, this project must suffer losses with an operating burden of Rp. 8.9 billion (US$618, 545) per month.
By looking at the fact that infrastructure projects have not been able to improve economic growth and to the gap in inequality – especially in the East – as well as various other disputes, the government’s decision to sign many BRI projects is certainly questionable. Also ironic is that the implementation of infrastructure development in Indonesia remains suffering from overt corruption practices. Instead of aiming at the welfare of society, infrastructure projects often become fields of concern for interested parties. Overall, there is a possibility that Indonesia will face Chinese debt trap is it is not careful, which would have negative impacts on the Indonesian economy.
The government needs to be able to make sure that participating in the BRI would not led to its loss. As what Malaysia has done, Jakarta may need to renegotiate with China on the terms and conditions of those projects. Indonesia must realise that China needs them more than they need China as the planned maritime route under the BRI would not be realised without Indonesia. Malaysian case demonstrates that negotiation is possible with China. Failure to do the above, it would not be surprising if what happened to Sri Lanka would also happen to Indonesia.
*Dendy Indramawan is a research assistant at Jakarta-based Institute for Development of Economics and Finance.
From our partner International Affairs
The Indo-Pacific Conundrum: Why U.S. Plans Are Destined to Fail
That U.S. Vice President Kamala Harris paid an official visit to Singapore and Vietnam in late August 2021 signifies clear intention of Joe Biden’s democratic administration to forge ahead with the course taken by his predecessor to build A Free and Open Indo-Pacific. According to the statement made by the second-highest political office-holder in the U.S., fostering partnership with the countries of the Indo-Pacific, including those in Southeast Asia, is Washington’s priority in foreign policy. Kamala Harris reaffirmed the U.S. commitment to the international rules-based order, ensuring freedom on the seas, unimpeded commerce and advancing human rights. Although the U.S. Vice President noted that China continues to coerce and intimidate, Washington’s engagement in Southeast Asia, she argued, is not against any country, nor is it designed to make ASEAN member states choose between countries. At the same time, almost all Indo-Pacific states, either known as the so-called Quad—the United States, Japan, India and Australia—or those willing to join the initiative on a less binding basis, have already failed to escape the adverse effects of the rapidly deteriorating U.S.-China relations.
Top Secret (or maybe not)
Previously classified as secret and unintended to be publicly released before 2042, the U.S. Strategic Framework for the Indo-Pacific was made available in May 2021. Experts believe this to be a guarantor of continuity in the Asian dimension of Washington’s foreign policy, regardless of the party affiliation of the country’s leadership. The document provides for a tougher confrontation with China in the military and economic spheres, which may negatively be perceived by some Indo-Pacific states and complicate their relations with the United States.
The policy outlined in the document seems inconsistent, which may cause misunderstanding on the part of allies and partners, resulting in a discussion about the real priorities and intentions of the United States. For example, it is difficult to explain the differing interpretations of India’s role. In the declassified NSC document, the nation is equated with Washington’s leading partners in the region, which implies an allocation of significant assistance from the U.S. Department of State, the military and the secret services in order to enhance “India’s capacity to address continental challenges.” Meanwhile, the 2019 Indo-Pacific Strategy Report of the U.S. Department of Defense ranked India among small and medium-sized states of Asia, which are not considered U.S. allies and are, therefore, not eligible for considerable assistance.
The ASEAN Way
Australian experts note that the deliberately declassified document reveals the need to consolidate the leading role of ASEAN in the security architecture of the region. At the same time, there is no consensus among the union’s member states regarding the essence and degree of priority of such important for the United States categories as freedom of navigation, trade and investment, respect for human rights and the rule of law. The so-called universal liberal values are of less importance to them as compared to the practical benefits coming from bilateral relations with China. According to Indonesian experts, such a divergence of views signifies apparently little sense of the specifics of Southeast Asia and regional processes on the part of analysts in Washington. They believe that the United States has not yet been able to convince the ASEAN nations of the need to create a counterbalance to Beijing as the U.S. cannot guarantee their security. As a result, the region has to face invidious choices since they find themselves at the intersection of the U.S.-China confrontation. Some countries seek to develop ties with Beijing within the Belt and Road Initiative (Thailand, Cambodia, Myanmar), while others opt for equidistance (Vietnam, Singapore) or adopt a wait-and-see approach (Philippines, Malaysia, Indonesia). At the same time, the latter increasingly tend to re-establish ties with the U.S. in order to benefit from American partners and put pressure on the Chinese leadership.
Among the measures on claiming superiority over China, the architects of the U.S. Strategic Framework for the Indo-Pacific envisage to deny the People’s Liberation Army (PLA) air and sea dominance within the first island chain in a conflict (Japan, Taiwan, northern Philippines). However, this merely is a further extension of the “rebalancing” policy carried out without much success by the Obama administration. A restoration of this course is predetermined by the fact that the plans of the former U.S. President Donald Trump for the massive rearmament and more American troops to be stationed in the Indo-Pacific never received proper financial support. The doldrums seem to be rooted in the Biden administration officials being skeptical about these grand in scale military goals in the Indo-Pacific, which they believe are neither affordable nor necessary to balance China and protect U.S. interests in Asia.
The underlying theme of the National Security Council report is “the U.S. remaining the region’s dominant actor.” However, analysts believe that Washington’s fundamental interest is effectively about ensuring access of national manufacturers to the markets and resources of the region rather than maintaining U.S. hegemony there. To this end, the American authorities are invited to clearly define how they could help the states of South and Southeast Asia in resisting pressure from China. At the same time, experts rely on the Cold War experience, when the U.S. could justify its military and economic presence by the menacing spread of communism. Consequently, the notion of an authoritarian the Chinese Communist Party and the need to sever ties with communist China are gaining popularity in the American establishment.
The Pacific Deterrence Initiative and the Interim National Security Strategic Guidance provide for a change in the U.S. military presence in the Indo-Pacific, taking into account its reorientation to ensure an effective response following the loss of unconditional dominance over the PLA.
The key pillars of the revised strategy to deter China were presented by Navy Adm. Philip S. Davidson in March 2021, at that time the commander of the U.S. Indo-Pacific Command (USINDOPACOM). He believes that China’s military capabilities will enable it to upset the status quo in most of East Asia, especially in the Taiwan Strait, the East China and the South China Seas, over the next six years. In order to prevent a further erosion of the rules-based order, he suggested putting a premium on “exercises, experimentation, and innovation” within the U.S. military in the Indo-Pacific as “critical enablers to deter day-to-day, in crisis, and key to our ability to fight and win.”
The Pentagon plans to provide for the allocation of USD 4.68 billion for the force design and stronger military capabilities in 2022, with another USD 22.69 billion spanning from FY 2023 through FY 2027. One of the focus areas is the creation of forward-based joint rotational forces under the auspices of INDOPACOM that would be capable of responding to challenges that require immediate and joint solutions.
Earlier on, one of the authors of this initiative, former U.S. Navy Secretary Kenneth Braithwaite, argued that the U.S. Navy should create a new First Fleet  that would take some load off the U.S. Third and Seventh Fleet (respectively based in San Diego and Yokosuka). According to American experts, the Seventh Fleet, overloaded with combat and training under the present conditions, is experiencing difficulties in supplies and staffing, since it is actually forced to operate in a vast area of the western Pacific and eastern Indian Oceans (from the dateline to India–Pakistan border). At the same time, the strength of the Third Fleet, whose AOR is the east and north of the Pacific, is excessive to fulfill the tasks facing it now.
Spare the Triarii
The U.S. military envisage the allies and partners of the United States to become the basis of the security system of “A Free and Open Indo-Pacific.” In the meantime, close attention will be paid to the compatibility of branches of the armed forces, interaction of units and formations, improving the exchange of information as well as leveling the technology of the region’s nations in the field of defense to be similar to the U.S.
The U.S. Department of Defense considers it justified to maintain an emphasis on forward deployment at foreign bases and the rotation of operational formations (mainly aircraft carrier and expeditionary strike groups), based on the specific situation. In this regard, Washington relies on India’s and Singapore’s assistance in the deployment of American units and formations as well as their logistic support. Promoting cooperation with the Maldives in this area is not ruled out either, with a defense agreement being signed in 2020. The prospects for a partial renewal of the substantive provisions of the 1951 Mutual Defense Treaty Between the United States and the Republic of the Philippines, which provided for the deployment of the U.S. armed forces on its territory, look rather realistic. Earlier in February 2020, Rodrigo Duterte, President of the Philippines, announced the suspension of the Visiting Force Agreement, but his position towards the U.S. softened, given the complications in relations between the Philippines and China.
First Chain Bound
Based on the rhetoric of the U.S. military leadership representatives and the published reports, Washington must constantly demonstrate its ability to deter China, denying China actions in critical regions and deploying sufficient U.S. forces in these regions to defeat the PLA. In alignment with the situation, the Pentagon finds this possible through creating local superiority zones within the so-called first island chain, using Fleet Forces, Air Force, mobile air missile defense systems as well as high-precision short- and medium-range missiles. In addition, an integrated Indo-Pacific anti-missile and air missile defense system is designed to ensure stability for the second island chain (from the Bonin Islands through the Mariana Islands to New Guinea). The U.S. Department of Defense is planning to allocate funds to improve space detection and tracking systems for a timely response to the PLA’s unwanted activities. These actions are designed to fulfill the Pentagon’s mission to increase the lethality of the Integrated Joint Force to prevent any enemy from dominance in land, sea, air, space and cyberspace conflicts.
The plans presented by Washington are built around the futility of military operations against it within the Indo-Pacific and are coupled with high losses for any potential adversary. At the same time, the presented strategy does not provide for inevitable retaliatory measures from China. Relying on allies and partners seems controversial as well, including when it comes to the deployment of additional U.S. Armed Forces. Most Asian states would prefer to retain the benefit from furthering cooperation with Beijing and are afraid of being abandoned by Washington in the event of a serious threat to their security, with the situation in Afghanistan already serving as an illustration.
Apparently, the Biden administration, even in the face of the declared defense budget austerity, will still increase the costs to strengthen U.S. military presence in the Indo-Pacific. On the one hand, this approach reflects the intention to reach a compromise with the Republicans. On the other hand, it is aimed at putting pressure on China and persuading it to negotiate such important areas of bilateral cooperation as trade, arms control and freedom of navigation in the South China Sea. This policy has already shown itself at the meeting of the U.S. and China representatives in Anchorage in March 2021 as well as at the meeting of U.S. Deputy Secretary of State Wendy Sherman with China’s State Councilor and Foreign Minister Wang Yi in July 2021.
Most likely, the United States will not give up on its attempts to establish a multilateral Quad-based security system in the Indo-Pacific in the foreseeable future. It is also planned to gradually involve other participants in this format, as evidenced by the increased contacts with Singapore, Vietnam, the Philippines and Indonesia. Taipei has a critical role to play in the U.S. strategic plans in the Indo-Pacific, while the development of military and technical, trade and economic cooperation, and the exchange of intelligence information with it deserves particular attention.
Today, Beijing is no longer going to hide its capabilities and bide its time, rather pursuing policies to advance its own security and development interests. China’s activities, not being directed against anyone, are perceived by the United States and its allies as an expansion and an attempt to crash the liberal world order, which is habitually defended by the liberal military force.
- An operational formation with AOR in the Northwest Pacific and the same name already existed from 1946 to 1973.
- The total number of warships (aircraft carrier, landing ship, cruiser, destroyer, frigate, multi-role nuclear submarine) is almost five times greater.
From our partner RIAC
AUKUS: A Sequela of World War II and US Withdrawal from Afghanistan
Deemed as a historic security pact, AUKUS was unveiled by the leaders of the US, the UK and Australia – a patent revelation of their shared interests in the Indo-Pacific. Despite the Prime Minister of Australia Scott Morrison’s public refusal “to acquire nuclear weapons or establish a civil nuclear capability”, the plan of building eight nuclear-powered submarines under the agreement remarkably augurs the country’s official accession to the existing “nuclear submarine club” whose members include the US, the UK, Russia, China, France and India. The AUKUS pact, for all intents and purposes, delivers as huge a leap in Australia’s defense capabilities as its international military strength.
Many have interpreted the birth of AUKUS as an effort to counter China’s aggressively rising military presence in the Pacific even though China was never explicitly mentioned in the remarks of the creation of the new alliance by its leaders. However, judged by China’s vehement condemnation of the security pact as “extremely irresponsible” so that it has risked “severely damaging regional peace” and “intensifying the arms race”, China obviously perceived it as a barefaced provocation and threat.
It has been witnessed that the tensions between Australia and China over the past few years have been soaring, ranging from Scott Morrison’s insistence on a full-bodied investigation into the origins of COVID-19 to Beijing’s indefinite suspension of all activities under the China-Australia Strategic Economic Dialogue Deal. Be that as it may, military confrontations between the two countries still seemed implausible until the formation of AUKUS. To make matters worse, Australia’s bold move also gave a rise out of France by scrapping their previous $40 billion submarine deal, which led the Foreign Minister of France Jean-Yves Le Drian to scathingly denounce Australia’s action as a “stab in the back”. But why on earth did Australia take such a sudden hawkish turn in terms of military, even at the expense of its relationship with France?
The shifting geopolitics of the Pacific region plays a major role. Australia has been sheltered by the ANZUS Treaty (The Australia, New Zealand and United States Security Treaty) since 1951, but the stable environment it has thrived in ascribes not only to the security agreement, but also to its own geopolitical advantage. During the Cold War, the North Atlantic was the focus of the naval operations of the US and the Soviet Union. The South Pacific, where Australia is located, was basically out of USSR’s reach, not to mention a rising US-backed Japan if Soviets ever planned on marching south. Geopolitics of Australia today, nonetheless, has drastically changed as the country’s greatest threat is no longer the Soviet Union. Instead, a provocative China has emerged as a new challenger in the South Pacific with its ramped-up presence in the South China Sea, rendering the area a security hotspot where Australia is ineluctably involved.
However, the geopolitical change in the Pacific is nothing new to Australia since it already experienced it decades ago. As a member of the British Empire, Australia fought alongside its Mother Country – the United Kingdom during the Second World War. Nevertheless, it was highly dependent on the UK for its defense against the backdrop of America’s inactive involvement prior to Japan’s attack on Pearl Harbor. Despite Winston Churchill’s vow to protect Singapore from Japan, the unexpected surrender of the British troops instead led to the fall of the Britain’s former colony to the Japanese army. Britain’s failure to defend Singapore was seen as a betrayal by the then-Prime Minister of Australia John Curtin, and his fury was further fueled when the UK turned a blind eye to Australia’s pleas for help in the wake of Japanese air raids on Darwin and northern Australia. The US did come to Australia’s aid, but the very reason why Americans helped was that they needed a base in the Pacific to look out for their own interests, and Australia happened to serve as a good spot.
All of those have made Australia acknowledge the fact that it only had “small-power status” and neither the US or the UK had been a reliable ally when it comes to protecting Australia in its hour of need. In that respect, it makes perfect sense for Australia to prioritize the enhancement of its own military capabilities over other matters, especially in the wake of the blatant military threat made by the chief editor of Beijing’s Global Times newspaper that Chinese missile strikes on Australia will be inevitable if the latter ever plans to intervene in Taiwan Strait issues.
Another heavily discussed question is – why did Australia rush to forge a new security pact even it is already a member of the Five Eyes intelligence-sharing alliance? The faltering American global leadership might be the major impetus. America’s chaotic withdrawal from Afghanistan not only created a power vacuum in the latter, but also potential instability in the Indo-Pacific. No matter how hard the Biden Administration has tried to defend its humiliating Afghan retreat, allies of the US are alarmed and suspicions of a falling America are raised. In the eyes of Australia, America’s abandonment of Afghanistan is nothing short of Britain’s insouciance towards Australia 70 years ago. As the victim of abandonment trauma during World War II, Australia’s contributions to AUKUS are simply the outgrowth of the country’s efforts to prevent history from repeating itself.
Australia is by no means the only country seeking a stronger military force and a tougher stance against CCP during the ongoing reshuffling of the global deck. Canada and Japan, both economically powerful but politically mediocre, are likely to make the same move as Australia has made to gradually break free from their military dependence on the US. Erin O’Toole, the leader of the Conservative Party of Canada has relentlessly bashed China’s Communist Regime and has highlighted his tough-on-China policy in the Canada federal election. In Japan, a great majority of the current prime minister candidates have also overtly manifested their hawkish stance on China. Regardless of where those elections may lead, it is not hard to fathom that Australia’s ballooning military spending will be replicated by more countries. AUKUS, as a sequela of the Second World War and US withdrawal from Afghanistan, is likely to usher in an era of a new round of arms race.
Visit of Vietnamese President to Cuba
Following the outbreak of the Corona pandemic in Vietnam, the government has decided to procure 10 million doses of Abdala vaccines from Cuba. Abdala vaccine is one of the two vaccines produced locally in Cuba. The situation in Vietnam is compelling because Vietnam has seen more than 16,637 deaths because of the Delta warrant outbreak in the country since April of this year. The casualty rate is still low in terms of global average. The severity of the crisis has been so profound that before the visit of Vietnam’s president to Havana an order of 10 million vaccine doses of Cuba’s vaccine has already been placed. Abdala vaccine is the eighth vaccine approved for inoculating Vietnamese adult population.
During the visit of President Nguyen Xuan Phuc (18-20 September) and his meeting with President of Cuba Miguel Diaz Canel issues of common interest were discussed at length. The two countries have been ideal logically aligned and there has been comprehensive cooperation between the two communist parties. In terms of bilateral corporation the two countries have been working with regard to trading in consumer goods, manufacturing, renewable energy and aquatic products. Cuba has appreciated Vietnam’s Doi Moi reforms and has expressed interest in drawing lessons from the initiative.
In fact the two countries have been adverse to the US capitalist approach in the past, and have been collaborating to sending off their party cadres to each other’s countries for training and also collaboration between the party schools. The relationship between Cuba and US is dotted with tensions and sanctions. The two countries are keen to collaborate with the US. There is increasing trade ties between Vietnam and US following the Permanent Normalization of Trade Relations (PNTR) between the two countries.
The leaders of the two countries are on the same page for betterment of their population and providing better living standards to the people. During the time of Obama constructive engagement with Cuba was foreseen. However, during the period of Trump administration, the congenial ties between Cuba and US went on a cold freeze. Cuba has appreciative of Vietnam’s support since the Cold War period and there has been exchange of knowledge and information with regard to socialist welfare model and economic liberalization measures that Vietnam has undertaken in the past few decades.
In terms of comprehensive partnership the two countries have focused primarily in areas such as agriculture, rice, coffee, aquatic culture, fisheries sector, maize and agrarian sectors. During the meeting between the two leaders it was agreed that the two countries will work together on developing the theoretical framework of Communist movement and better coordination between the foreign ministries of the two countries. In terms of defence and security aspects also there has been collaboration between the two sides and it is expressed that the collaboration should be further expanded.
It has been also seen that collaboration with regard to production of Abdala COVID-19 vaccine in Vietnam would work in enhancing ties between the two countries in health and medicine sector. Given scourge of the Corona pandemic in Vietnam it is expected that the medical and health clearances for the vaccine will be expedited quickly.
This Cuba visit happened before Vietnam president and the delegation attending the general debate in UN General Assembly in the last week of September. It is expected that the Vietnam president will also attend bilateral activities in the United States. As the Cuban visit precedes the UN meeting, it clearly exposes the strong solidarity and understanding that the two countries have.
Vietnam is also going to make a strong pitch in favour of its role as the non-permanent member of the UN Security Council and also put up its candidature for the UN human Rights Council for the period 2023-2025. It is also expected that Vietnam President will hold discussion with other heads of states and important countries related to pandemic prevention and economic recovery in the post pandemic phase.
India has also expressed strong desire with regard to intellectual property rights waiver for the vaccine development and also support to the third world countries in the production of vaccines. Vietnam has been looking for international producers of vaccines to expedite quick delivery of vaccine doses, critical medical equipment and medical supplies to the country. Following the permanent normalisation of relations between US and Vietnam, and the existence of comprehensive partnership between the two countries it is expected that better trade relations between the US and Vietnam would help Vietnam to recover from the pandemic enforced economic stress. The US has so far provided more than 6 million doses of vaccine to Vietnam through the global vaccine mechanism which is known as COVAX. Vietnam is also looking for procuring 20 million doses of Pfizer vaccine for citizens aged 12 to 18.
Vietnam has also started administrating mixture doses of Astra Zeneca and Pfizer vaccines to its population acknowledging the fact that the best way to protect the citizens from the coronavirus is through extensive vaccination programmes. Despite certain bottlenecks Vietnam has inoculated nearly 30.4 million doses of vaccines to its population. The third wave of the coronavirus is expected to be more devastating and it is compelling for a country like Vietnam to provide vaccines to its population.
With Cuba the interesting aspect is that the country will transfer the production technology to Vietnam by the end of this year. Vietnam has been a very instrumental in urging the United States to drop the hostile policy towards Cuba. In terms of trade embargo that the US has imposed on Cuba, it is anticipated that US is going to tone down the restrictions and promote trade facilitation between the two countries. Cuba is also planning to export and commercialize its two indigenous vaccines after the World Health Organization (WHO) gives approval. In terms of effectiveness Abdala vaccine is stated to be 92.28 per cent effective against COVID-19 when a person is administered three doses of the vaccine.
Given the closer relationship between the two countries which started with the recognition of Vietnam by Cuba in 1960 the ties between the two countries have grown multifold. Cuba had also supported Vietnam during its fight against the US forces in southern Vietnam and in order to show solidarity Cuba has established mission of Permanent representative in July 1962 and it appointed an Ambassador subsequently in March 1969. Also during the war of aggression undertaken by the US against Vietnam, US imposed trade embargo against Cuba and snapped all diplomatic relations with the island country. Cuba raised a nationwide movement with the slogan of ‘All for Vietnam’. Interestingly, Cuba has also named manufactories schools and neighbourhood after the anti-US heroes of Vietnam. Fidel Castro during his various visits to different countries has also urged these countries to support Vietnam against the US invasion. Cuban sailors had supported Vietnamese people during the bombing at Hai Phong port.
The history of relationship between the two countries is replete with examples of cooperation, construction and support for each other’s revolutionary causes. Vietnam and Cuba had signed a new trade agreement in November 2018 and have outlined the new agenda for the 2020–20 25 period. Vietnam has grown to be the second largest trading partner for Cuba in Asia. Vietnam has also supported Cuba in terms of developing rice production techniques and ensuring food security. The two countries celebrated their 60th anniversary of the establishment of diplomatic relations and are entering a new phase of unity, partnership and better economic relations.
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