By Chandmani Sukhbaatar
The recent state visit by President Khurelsukh Ukhnaa to Vietnam has been a crucial step in establishing a new framework for expanding and deepening bilateral ties and setting out the future direction for the Mongolia-Vietnam relationship.
When we look at both countries, there are certain similarities, in terms of location and historical backgrounds. Both nations are geographic neighbors to China – Mongolia from the North and Vietnam from the South – with certain lingering trust issues and uneasiness due to past history.
Therefore, in this era of great power competition, Mongolia and Vietnam will face similar hurdles in balancing relations with great power rivalries; this will guide their respective foreign policies and perspectives to become ever more aligned.
Mongolia established diplomatic relations with Vietnam in 1954, and they will be celebrating their 70th anniversary this year. In this article, we will look at the progress achieved throughout the last 70 years and where this relationship is heading. Where does relations with Vietnam stand in Mongolia’s foreign policy, and what are the common interests that binds this relationship?
Mongolia was one of the first countries to establish diplomatic relations with Vietnam while respectively, Vietnam was the first country in Southeast Asia to set up diplomatic ties with Mongolia. Henceforth, both countries have cooperated in close coordination in various fields, giving impartial and transparent assistance to each other. During the Vietnam War, the Mongolian people actively supported and provided many necessities to the Vietnamese people. In response, Vietnam provided practical assistance to Mongolia, sending experts to help survey and develop traffic, grow crops, and restore historical relics. Since then, the traditional friendly relationship between the two countries has continuously developed. Frequent delegation exchanges and meetings at all levels have contributed to strengthening mutual understanding and trust, leading to a relationship that regularly supports each other at regional and multilateral forums. Mongolia has supported Vietnam’s accession to the WTO, membership in the UN Security Council, and bid for various international organizations. Vietnam, in turn, supports Mongolia’s efforts to join international forums and expand ties with ASEAN member states.
In terms of commerce, the economic and trade relationship between Vietnam and Mongolia has made fair progress in recent years. The bilateral trade exchange in 1995 was around 6 million USD, and it has grown rapidly in recent years to reach 85 million USD in 2022, with plenty of room for growth in the coming years.
Last year, President Khurelsukh met with the President of Vietnam, Vo Van Thuong, in Hanoi. Both leaders agreed on the development of bilateral relations in many areas, with visa liberalization and their economies being the main concerns. During the visit, the sides agreed to increase bilateral trade volume to 200 million USD and agreed on visa liberalization and direct flights, thereby creating favorable conditions to promote tourism and trade cooperation and increase people-to-people exchanges. This has been one of the most practical outcomes of the visit, especially for the tourism sector. Vietnam has become one of Mongolia’s go-to holiday destinations, especially during the harsh winter season, due to its affordability for the middle class.
With regard to foreign affairs, Mongolia considers Vietnam a leading partner in Southeast Asia and a potential bridge to other ASEAN states and their market of 700 million people. However, there have been some setbacks in establishing greater interconnectivity. Vietnam has become an industrialized country that has firmly occupied its position not only in Southeast Asia but also in the world. The overriding obstacle limiting trade between Mongolia and Vietnam is the problem of freight transportation. To date, the transportation of goods and products has been mainly based on railways passing through the territory of the PRC, with certain restrictions and limits on the amount of transported goods. Although there are certain hurdles to overcome, Mongolia and Vietnam have identified where their common interests align in ideological and geopolitical aspects. After all, both countries are similar in many ways. Mongolia is trying to balance its relations with global powers primarily through its energy sector. Vietnam, on the other hand, is trying to emerge from the US-China competition unscathed thanks to foreign investment and production activities in the country. Their foreign policies, which are based on a policy of balance and the situations they are in, have opened the door for Mongolia and Vietnam to have a positive atmosphere in bilateral relations.
Another similarity is their foreign policy strategy: Mongolia’s third neighbor policy and Vietnam’s bamboo diplomacy. Both countries’ implementation of policies that transcend their borders to seek engagement with other partners has enabled them to navigate and adapt to the shifting environment of great power competition.Physically landlocked between Russia and China, Mongolia’s multilateral endeavors have led to its successful balancing act. As for Vietnam, its strategy that is described like bamboo – firm yet able to sway flexibly when caught in the winds – has been important in handling the conflictual US-China relationship. Through this strategy, Vietnam has pursued closer ties with both countries without the perception of taking sides.
Acknowledgement: The author would like to thank Dr. Julian Dierkes for being a peer reader, and Mr. Hesu Song, a Princeton in Asia fellow in Mongolia, for being a peer reader and the copy-editing.
