Geopolitical Economy Report

Vietnam prepares for new war with USA, aimed at China

Feb 11, 2026
A deep dive into Vietnam's balancing act amid a renewed US-China cold war. Talks about a leaked Vietnamese defense plan for a possible conflict with the US and why Hanoi distrusts Western intentions. Explores Vietnam's 'bamboo diplomacy', growing China ties, ASEAN non-alignment, and how economic and military strategies reshape Southeast Asian autonomy.
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INSIGHT

Carrots, Sticks And Economic Leverage

  • The U.S. plans to use allies' combined economic power to preserve its prime global position.
  • Washington offers inducements to 'tip decisions' in its favor across the region.
INSIGHT

Economic Ties Undermine Containment

  • China is Vietnam's top trading partner and has a longstanding comprehensive strategic partnership with Hanoi.
  • ASEAN has been China's largest trading partner for over a decade, complicating U.S. containment aims.
INSIGHT

Investment-Led Growth Powers Vietnam

  • Vietnam's rapid development follows an investment‑led, state-driven model similar to China's.
  • Heavy fixed capital formation turned Vietnam into a major manufacturing hub, especially in electronics.
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