Arms embargo on Vietnam in the balance as Obama visits old foe

Vietnam has long been calling for arms embargo to be lifted, arguing that buying weapons for self-defence is normal

HANOI: US President Barack Obama began his first visit to Vietnam on Monday, part of his strategic "rebalance" towards Asia that could bring more overtures to a former enemy to boost its defence capability as a time of rising South China Sea tension.

The run-up to the visit has been dominated by a debate in Washington about whether to remove a decades-old lethal arms embargo on Hanoi and give it easier access to procurements of US military technology.

The ban was partially eased in late 2014 but analysts say scrapping it completely is a gamble that could impact US bargaining power with a potential Asian ally that it has long been pressing to get serious about human rights.

Most top US aides favour at least easing the embargo further, arguing that Washington needs to demonstrate tangible support for Hanoi's efforts to build its deterrent against neighbour China, people familiar with the discussions said.



Obama met President Tran Dai Quang as his visit began and he will also meet the two others in Vietnam's triumvirate of leaders, Prime Minister Nguyen Xuan Phuc and Communist Party chief Nguyen Phu Trong on Monday.

In remarks to Quang, who until recently was head of the country's internal security agency, Obama congratulated him on the "extraordinary progress" Vietnam had made.

"Whether we are talking about commercial and economic ties or military-to-military consultations or humanitarian work or our legacy of war issues ... Across the board what we've seen is increased cooperation for the benefit of both our peoples," he said.

Vietnam has long been calling for the arms embargo to be lifted, arguing that buying weapons for self-defence from established trade partners is normal.

Though the communist parties that run China and Vietnam officially have brotherly ties, China's brinkmanship has forced Vietnam to recalibrate its defence strategy with a focus on a military deterrent in its coastal waters, including modern Russian Kilo-class submarines, advanced radars and corvette missile boats.

Bargaining power

Vietnam has relied heavily on Russian technology and increasingly buys from Israel, but it is in the market for better surveillance technology and fighter jets.

Unrestricted access to US arms might not necessarily result in a Vietnamese spending spree on US hardware, but would boost its power to bargain for better prices from all suppliers.



Lifting the ban would likely upset China, which sees US support for rival South China Sea claimants like Vietnam and the Philippines as interference and an attempt to establish hegemony in the region. Washington insists its priority is ensuring freedom of navigation and flight.

"Nobody has any illusions," said Evan Medeiros, Obama's former top Asia adviser. "This trip sends important signals to China about US activism in the region and growing US concern about Chinese behaviour."

Obama's visit follows what the Pentagon called an "unsafe" intercept last week by Chinese fighter jets of a US military reconnaissance plane over the South China Sea. But Vietnam's human rights record is a sticking point.

Officials are mindful of misgivings back in Washington about losing leverage for securing political reforms from a government that rights advocates say is among the world's most repressive.

Any move to revoke the arms ban would make clear that every weapons sale would be on a case-by-case basis, contingent on human rights considerations, officials said.

Obama, who has proven himself a pragmatist in balancing security and human rights, plans to meet dissidents during his trip, something that will not sit well with Vietnam.

A BBC journalist covering the Obama visit on Monday said he had been ordered to stop reporting, apparently after interviewing a noted intellectual and activist.

But US officials are looking not only for signs that the Vietnamese are taking rights concerns seriously. They want a commitment to expanded military cooperation, including more US access to ports such as the strategic Cam Ranh Bay and participation in joint and regional naval exercises.

Obama, the third US president to visit Vietnam since ties were restored in 1995, has made closer diplomatic and military cooperation with countries across the Asia-Pacific a centrepiece of his foreign policy.

There has been much excitement about Obama's visit in a country with a young population firmly behind closer US ties and resentful of their economic dependence on China.

China is Vietnam's biggest trade partner and source of imports, but trade with the United States is growing fast. It has swelled 10-fold over the past two decades to about $45 billion, and Vietnam is now Southeast Asia's biggest exporter to the United States.

Vietnam's manufacturing-led economy is growing at one of Asia's fastest rates, prompting US firms such as Intel, Microsoft, Ford Motors and General Electric to expand operations here.

In the commercial hub, Ho Chi Minh City, formerly Saigon, Obama will meet entrepreneurs and tout a Trans-Pacific Partnership trade deal he has championed, in which Vietnam would be the biggest beneficiary of the 12 members.