Vietnam, Malaysia seek to smooth tensions in South China Sea

PUTRAJAYA – Vietnam and Malaysia agreed to elevate ties and explore closer cooperation to maintain peace in the South China Sea, after a complaint from Malaysia raised tensions over the contested waters.

The two leaders pledged to “continue working closely together to maintain peace, security, stability, safety and freedom of navigation and overflight in the South China Sea and to promote peaceful settlement of disputes”, Vietnam Party chief To Lam said in a joint briefing with Malaysian Prime Minister Anwar Ibrahim in Putrajaya.  

Both sides have “agreed to explore the possibility of having joint efforts in the fishing industry so that we can really work on the basis of trust and friendship”, Datuk Seri Anwar said.

The nations have overlapping claims in the highly-contested South China Sea.

Malaysia recently lodged a rare protest over Vietnam’s island-building programme in the Spratly Islands, according to a Reuters report.

The waters are at the centre of a long-standing territorial dispute involving China, Brunei and Taiwan as well as the Philippines.

The relationship will be upgraded to a comprehensive strategic partnership that will help “open a new chapter for cooperation between the two countries for peace and stability”, Mr Lam said. 

The two Asean nations have benefited from a diversification of supply chains away from China and will be watching closely to see what steps US President-elect Donald Trump takes when it comes to trade and tariffs.

Bilateral trade will be boosted to at least US$18 billion (S$24 billion) a year, Mr Lam said.

Malaysia is Vietnam’s second-largest trade partner in Asean and the third-largest foreign investor among Asean countries, according to Vietnam’s government.

Malaysian companies were behind more than 700 projects in Vietnam in 2023, with investments totalling US$13 billion, Mr Anwar said.

Ahead of the briefing, the leaders witnessed the signing of a memorandum of understanding to enhance cooperation in trade promotion, and a memorandum of cooperation between Petronas and PetroVietnam in the field of renewable energy.

It is Mr Lam’s first official trip to Malaysia since his election as general secretary in August, and marks the first time a Communist Party chief has visited the nation since 1994.

“We pledged to continue actively supporting each other and working closely on international and regional issues for peace, security and stability,” Mr Lam said. BLOOMBERG