Chapter Thirteen
250
more significant event was the visit of US Secretary of Defense Leon
Panetta to the former biggest US Naval base in Vietnam at Cam Rahn Bay
in June 2012. On his visit, Panetta stated that the US wanted to work with
Vietnam on critical maritime issues, including a code of conduct focusing
on the South China Sea, and also to improve navigation in the oceans.^38
Cam Rahn Bay, a former US logistic base considered to be the “jewel” of
deep-water ports in Southeast Asia, is again important for the US, which
hopes to see it develop into an international logistics hub with access for
US naval ships. This is a key component of the new Vietnamese-American
relationship with tremendous potential for the future.^39 The fact that
Vietnam seeks to strengthen its security relationship with Washington,
once a major adversary, is palpable evidence of Vietnam’s efforts to seek a
credible deterrent to hedge against China.^40
Economic cooperation
Regarding the importance of the economic exchange and interdependence
in the modern world of geopolitics and international relations, economic
relations between Vietnam and the US are also very significant and
constantly increasing. After two decades of virtually no economic contact,
both countries reestablished trade relations in the 1990’s, with tremendous
growth in the trade exchange from $220 million in 1994 to $15.7 billion in
2008.^41 With 18% of the total exports, the US is Vietnam’s biggest export
partner.^42 Regarding foreign direct investments, the US was the seventh
largest source in the last 10 years. However, according to Matthew Daley,
former president of the U.S.-ASEAN Business Council, there is an
expectation that the US will become the largest foreign investor in
Vietnam in the next two to three years, considering the fact that, during the
http://newsinfo.inquirer.net/41485/vietnamese-officials-visit-us-aircraft-carrier
(^38) Stripes, “Panetta first top US official since war to visit old Vietnam Navy base“:
http://www.stripes.com/news/pacific/panetta-first-top-us-official-since-war-to-
visit-old-vietnam-navy-base-1.179437
(^39) Ibid.
(^40) Sehnálková, “China’s growing assertiveness in the South China and East China
Seas: Reactions of the U.S. and other regional players”, 84.
(^41) Martin, “U.S.-Vietnam Economic and Trade Relations: Issues for the 111th
Congress”, 1.
(^42) CIA, World Factbook – Vietnam: https://www.cia.gov/library/publications/the-
world-factbook/geos/vm.html