Globalisation and a number of impacts on Vietnam - Russia relations
Globalisation and A Number of Impacts on
Vietnam - Russia Relations
Nguyen Quang Thuan1
1 Vietnam Academy of Social Sciences.
Email: [email protected]
Received on 15 December 2019. Revised on 26 December 2019.
Accepted on 28 December 2019.
Abstract: The globalisation process has now new features and movement trends with strong
adjustment of actors involved in this process, ranging from international and regional institutions,
transnational companies to countries and individual businesses. The process of globalisation in the
first two decades of the 21st century is posing new challenges and new opportunities with both
positive and negative aspects, with both cooperation and struggle, to all countries and peoples of
the world, including the Russian Federation and Vietnam. This paper focuses on analysing the
characteristics, content and new trends of globalisation, recognising the effects of globalisation on
the current Vietnam-Russia relations.
Keywords: Globalisation, trends, impacts, Vietnam-Russia, relations.
Subject classification: Politics
1. Introduction
transportation and communication, and the
breaking down of artificial barriers to the
flows of goods, services, capital,
knowledge, and (to a lesser extent) people
across borders”. Globalisation is also
accompanied by the creation of new
organisations/institutions and they join with
existing mechanisms/institutions to promote
or hinder cross-border activities of those
flows [3]. According to O'Loughlin et al.,
globalisation is a set of processes in which
capital flows, technology, people, goods
and information move constantly across
political boundaries on maps, and thus the
Conceptually, globalisation can be understood
as the process of increasing the quantity and
quality of mechanisms, processes and
activities to increase the interdependence
among countries of the world in all fields
including economics, politics, culture,
society... on a global scale.
According to Joseph Stiglitz, who
received the Nobel Prize in Economics in
2001, basically, globalisation “is the closer
integration of the countries and peoples of
the world which has been brought about by
the enormous reduction of costs of interdependence among societies with large
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Vietnam Social Sciences, No. 1 (195) - 2020
expanding both in size and speed, making
the flows in each global connection network
also tend to increase quickly.
distances and shortened time frames has
been strengthened [2].
The connotations of globalisation that
have been clearly reflected in the concepts
Third, national boundaries among
of many large international organisations peoples in the world tend to become
(e.g. UN, WB, FAO, UNESCO, IMF, increasingly blurred in the long term.
OECD) as well as many world-renowned Transnational companies as well as global
scholars and economists include: (i)
International connectivity in interconnected
networks at the global level or international
integration; (ii) The more liberal movement
of flows of goods, services, capital,
governance organisations and non-
governmental organisations play an
increasing role in strengthening connectivity
and increasing interdependence among
nations and peoples at the global level. The
importance of countries and territories tends
to decline in the long run relative to the role
of global trade, global markets, global
governance organisations / institutions [1].
information,
technology,
knowledge,
competition, enterprises, people, cultural
values, ideologies, institutions and policies;
(iii) Interdependence among countries and
peoples in all areas on a global scale.
Fourth, information technology and the
internet significantly cut costs of
transportation, media, communication and
production to help strengthen cross-border
connectivity for all the people on a global
scale. Not only geographical distance but
also time and space for interaction and
connectivity across national borders also
tend to be compressed or become narrowed
significantly in the long term [2].
2. Outstanding features, contents and
trends of globalisation today
Globalisation in the early 21st century has
some outstanding features as follows:
First, the connection of economies and
peoples (including people, businesses and
governments) through the process of
international integration which tends to
become increasingly deeper and broader in
all fields at the global level. The
interdependence among countries and societies
in economic, political, cultural, social,
ecological and military sectors on a global
scale is increasing and becoming closer.
Fifth, the boundaries of cultural
differences among cultures of peoples in the
world are becoming more blurred.
Migration flows and tourism help
strengthen cross-border connectivity for
peoples and countries on a global scale.
The content of globalisation can be
divided into four main pillars as follows:
Second, interconnected networks at the
global level related to the flow of goods and
services, international capital flows,
- Economic globalisation, one of the
most important pillars of globalisation, is
often understood as the growing
interdependence of economies around the
world through the rapid increase in scale of
trade of transboundary goods and services,
mobility of international capital flows,
technology,
information
and
data,
knowledge, transnational companies, flows
of migrants and and labour, cultural values,
products of cultural industry,... are increasingly
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Nguyen Quang Thuan
cross-country labour migration, the deep as a tendency to decline the relative
and broad involvement of transnational importance of the nation-state's role in
companies in economies, tendency to political relations, both bilateral and
reduce tariff and non-tariff barriers, multilateral, with other global governance
increasingly fierce competition among organisations / institutions in the long term.
companies and across industries, rapid
spread of technology and data sharing.
- Environmental globalisation not only
refers to the growing role of global
environmental management organisations
but also emphasises improving environmental
Countries at present accept deeper
integration into the global economic system
through free trade agreements. In 1995, the
world had only two trade agreements, then
at the beginning of 2014, the World Trade
Organisation (WTO) noted that 546
bilateral and multilateral trade agreements
had been signed among countries. In the
2000-2017 period, the world recorded an
average of 20 FTAs each year.
governance
capacity
and
strategic
coordination capabilities of countries
(international practices, standards, and
signed international commitments related to
environmental protection) as well as
proactively upgrading knowledge systems
and expanding environmental monitoring
networks (especially global climate change
and disaster warning) in the direction of
strengthening uniformity and global
connection in global environmental
management and protection practices in a
regular, synchronous, transparent and
highly accountable fashion.
- Cultural globalisation, one of the key
pillars of globalisation, often refers to the
rapid transmission and spread of cross-
border interaction of ideas, attitudes,
languages, meanings, knowledge, norms,
cultural values, ideologies, beliefs, images,
and products of the cultural industry in a
way that constantly expands and enhances
The trend of new globalisation
The annual meeting of the World
social relations by resonate impacts of Economic Forum (WEF) held in Davos
information and internet technology, the (Switzerland) in January 2019 highlighted
booming of cyber social networking sites the theme: "Globalisation 4.0: shaping a
and online social media, the widespread global architecture in the age of the fourth
development of satellite communications, industrial revolution". The Forum says that
the flexibility of the labour market and the world is entering the 4th industrial
migrant flows, as well as the changing revolution, all becoming a flat world, but
demand for cultural enjoyment of the youth from a certain perspective, globalisation is
and middle class in the global market.
faced with certain inadequacies.
- Political globalisation not only refers
Globalisation 4.0 actually refers to the
to the increase in both the size and new globalisation trend based on the
complexity of the political system and its breakthroughs of the fourth industrial
institutions globally but also emphasises the revolution, which was launched in G7
strengthening and expansion of inter- countries after the 2008 global financial
national relations (enabling peoples and crisis and economic recession and
cultures to get closer to one another) as well continued to present. Although it has been
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Vietnam Social Sciences, No. 1 (195) - 2020
taking place for less than a decade, the process creates opportunities for economies
speed and spread of the fourth industrial to receive more and more new
revolution has been very fast and strong. So achievements, creative breakthroughs in
far, this fourth globalisation trend has been science and technology, organisation and
marked by a turning point in comparison management, production and business,
with previous globalisation trends.
knowledge and international experience,
not only for the state, companies, but also
for individuals. Every country is trying to
take advantage of the advantages that
globalisation brings about and avoid being
marginalised by this irreversible process.
The fourth industrial revolution with
unprecedented technological breakthroughs
has transformed the globalisation process
into a new phase with deeper and more
comprehensive changes. Klaus Schwab,
founder and chairman of the World
Economic Forum, said that the world was
only at the beginning of Globalisation 4.0
and was completely unprepared to respond
to the scale of changes forthcoming.
Countries were still continuing to address
the problems of globalisation with an
obsolete perspective, thus it is necessary to
redefine processes and institutions to better
utilise the new opportunities ahead, while
avoiding disturbances [4].
3. Impacts of the new global trend on
Vietnam-Russia relations
Before analysing the impact of the new
globalisation trend on the relations between
the two countries, I would like to take a
look at the global influence on the
development of each country. For Vietnam,
after more than 30 years of đổi mới, or
The fourth industrial revolution exerts a renovation, period, the country's economy
strong impact on employment in such areas has escaped from underdevelopment, and it
as health care, transportation, communications, has joined the group of middle-income
production, distribution and energy. The countries, integrated deeper and broader
development of technology will create new
jobs but at the same time deprive workers
of job opportunities who have not yet
adapted to the new era. Machines can
replace human beings faster than the speed
at which human society adapts to changes
created by machines. In addition, ecological
challenges, typically climate change, are
threatening socio-economic development.
Climate change and its dangerous
consequences are no longer a new issue.
The question is just how countries agree
and cooperate to solve this global problem.
into the region and the world. According to
international organisations, in the early
years of the 21st century, Vietnam was one
of the countries benefiting most from the
globalisation trend. In 2017, its trade/GDP
ratio reached more than 200%. This has
been the highest number among countries
with the population of over 50 million
surveyed by the World Bank since 1960. In
the group of 20 most populous countries in
the world, Vietnam has well surpassed the
country ranked second, which is Thailand
with 122%. In the early years of the 21st
century, Vietnam focused on accelerating
the process of deep integration with the
Along with the booming of the science
and technology revolution, the integration
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Nguyen Quang Thuan
world. Along with multilateralising and
diversifying relationships, being a reliable
partner of countries and regions in the
world, Vietnam has paid great attention to
economic integration. It has signed ten, and
will sign six more free trade agreements
(FTAs). That is also a good opportunity for
Vietnam to attract the world's resources. It
can be said that the factors of globalisation
and international economic integration play
an important role in the country’s average
growth of 7% over the past three decades.
challenges of unconventional insecurity
such as climate change, loss of water security
and energy security, etc., will directly affect
Vietnam more and more deeply in the time
to come. In particular, the strategic
adjustment, increased unilateralism and
"abnormal" relations of powers have put
Vietnam in front of risks in foreign
relations and environment for development.
In the early years of the 21st century, the
Russian Federation also gained great
achievements in economic development and
improved its defense capacities and position
in the international arena. In the trend of
Globalisation 4.0 since 2012, Russian
President V.Putin has drafted the
Programme and Prospects for Development
of the Russian Federation with a very
important highlight being the innovative
socio-economic development orientation,
with the following characteristics. First,
based on the modernisation of Russia’s
traditional economic sectors (such as oil,
gas, raw materials, agriculture and
transport), it is necessary to increase the
volume of highly-processed products, which
are the sectors with the most contributions to
its GDP towards 2020. Second, it is
important to renovate the economic growth
factors; to increase labour productivity in all
areas of national competitiveness; to reduce
energy consumption; and to increase
technology innovation and market share of
innovative products. Third, it is important to
form a new economy, which is the economy
based on knowledge and high technology,
which becomes a leading sector of the
national economy and by 2020 will
contribute to Russia’s GDP with a ratio
similar to that of the sectors of oil and gas
and of raw materials.
JP Morgan's research also shows that
Vietnam ranks among the most powerful
supporters of globalisation. In the coming
period, in the long term, international and
regional development trends in the coming
years will exert a very positive and
favourable influence on the country's
takeoff and development. Vietnam is
having a good chance when international
integration dynamics are moving to
developing countries located in the Asia-
Pacific region - where there are centres of
growth and strengthened regional links. The
fourth industrial revolution and the
popularity of the global production network
is a new condition for Vietnam to leapfrog,
narrowing the gap in knowledge and
technology, even when conditions for
innovation-based growth have just started.
In the short term, the world economic
and political situation is at large bends with
a high degree of uncertainty as the
multipolarity of the world order increases
while global governance institutions appear
ineffective. In the short term, the international
environment still has many underlying
uncertainties and risks for the development
process. The impact of global issues and
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Vietnam Social Sciences, No. 1 (195) - 2020
However, the Ukraine crisis since the economic development objectives and to
beginning of 2014 along with disagreements make it one of the world's leading
with the West, and the imposition of economies, to have in place a rational
sanctions by the US and EU made the policy to attract foreign investment; and for
Russian economy face with more difficulties. Russian businesses to enjoy numerous
In this context, Russia's primary goal is to advantages to expand to external markets.
resolve external challenges, especially the US
and EU sanctions, continuing to restore and
affirm the position of a power, to restore and
to promote economic growth.
Russia's main foreign relation interests
will still be to create maximum international
conditions to develop the country, to reduce
costs due to conflicts with external
Russia under the leadership of President stakeholders, and to ensure high security at
Putin has always been geared towards rising an optimal and effective cost.
to
restore
its
superpower
and
In general, in the trend of increasing
globalisation, both Vietnam and the Russian
Federation are pursuing their foreign
policies of self-reliance and independence,
deriving from their national interests, and
on the basis of unconditional respect for
international laws. Russia and Vietnam are
fully aware of their special responsibilities
to maintain security in the world at the
global and regional levels, with the aim of
working together with all relevant countries
to resolve common challenges.
counterbalance status to the United States.
The outlook in Mr Putin's foreign policy is
that Russia, together with China, will
become opposite poles against the West,
having military and political balance with
the US. In the time to come, creating
favourable opportunities for development in
the country is still an important task for
Russia, because it determines that economic
backwardness is continuing to be a growing
threat to its sovereignty, narrowing
opportunities in the foreign policy.
The external strategies of both the
countries have always been adjusted in the
direction of both prioritisation and
From now until 2025, Russia will still
have enough potential to continue
implementing its foreign policy in the
direction of independence, proactiveness,
pragmatism and flexibility to ensure
maximum national interests on the basis of
taking advantage of its advantages and
potentialities of energy, fuel, weapons, etc.,
to gather forces, to seek allies for the purpose
of improving its role and influence as a
power in the region and the world.
diversification,
both
flexibility and
pragmatism, in accordance with the changes
of the domestic and international situation,
and the relationship of powers as well as the
position of each of the two countries in the
region and the world. Both countries
consider economic development, building
defense capacities, ensuring national
sovereignty and territorial integrity to be
Russia will give maximum priority to top priorities in their foreign policies,
strengthening relations with those countries aiming to create a favourable environment
and regional organisations that it has many for domestic sustainable development and
interests with such as, first of all, the CIS, diversification of their own economies,
the US, China, EU and ASEAN to serve its through the promotion of promising and
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Nguyen Quang Thuan
innovative projects in various sectors, maritime and air routes through the Biển
strengthening cooperation with leading Đông (East Sea, i.e. South China Sea),
countries in the world.
Some impacts of the new globalisation
trend of Vietnam - Russia relations:
having political stability and potential for
economic development, Vietnam is
considered one of Russia's priorities in the
eastward policy that the latter is pursuing.
The strengthening of cooperation between
the two countries is considered one of the
important prerequisites to help Russia
strengthen its presence and establish its
influence in Southeast Asia in particular
and in Asia in general, while helping it
strike the balance of power in the region.
With a history of more than 70 years of
traditional relations inherited from the
Vietnam-Soviet relations and 25 years since
the establishment of official relations
between Vietnam and the Russian
Federation, it can be said that this is a
valuable traditional friendship to be
respected. Since 2001 until now, the
relationship has continuously developed,
and has so far become a comprehensive
strategic partnership, contributing strongly
to the development of either country. For
the past ten years, the Vietnam-Russia
relations also has been characterised with
common features of the trend of
globalisation, with cooperation and
competition; promoted diplomatic political
bonds, trade and economic relations, and
ties in national security and defence,
science and technology, education and
culture; both strengthening bilateral
relations and taking advantage of
The position of Vietnam in Russia’s the
foreign policy has been affirmed many
times in Russian documents and in the
statements of leaders of the two countries in
meetings and exchange of visits. President
V.Putin affirmed that "Developing multi-
faceted relations with Vietnam is one of the
priorities in the foreign policy of the
Russian Federation in Asia" [5]. This is a
positive point for the Russian Federation
and Vietnam "to have the cordial
cooperation between the two partners that
never betray each other" [5].
In the diplomatic and political relations,
multilateral
undergoing both
mechanisms,
and
also the last two years have seen a series of
and regular visits by leaders of the two
advantageous
disadvantageous effects of the international countries in a bilateral framework as well as
and regional contexts. In this paper, it is not within the regular multilateral cooperation
possible to point out all direct and indirect of APEC, ASEM and ASEAN+. President
impacts in all areas by globalisation on each V.Putin and Prime Minister D.Medvedev
of the two countries as well as the relations came to Vietnam, while General Secretary
between them. However, it is possible to of the Communist Party of Vietnam (CPV)
point out some significant impacts of cum State President Nguyen Phu Trong and
globalisation on bilateral relations since the Prime Minister Nguyen Xuan Phuc also
Ukraine crisis to date.
visited the Russian Federation.
Located in an important geostrategic
Regarding the trade and economic ties,
position, being the intersection of Southeast right after the strengthening of the regional
Asian countries, controlling the key economic integration with the establishment
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Vietnam Social Sciences, No. 1 (195) - 2020
of the Eurasian Economic Union (EAEU),
Vietnam was the first country to sign an FTA
with the organisation in June 2015. The FTA
is expected to be the driving force to achieve
the goal of increasing the total bilateral trade
turnover to USD 10 billion in the next few
years, based on areas of traditional
cooperation such as oil and gas, fuel and raw
materials, and active development in other
areas such as agriculture, tourism and
services. There is the need for breakthrough
solutions to promote those areas where
Russia has comparative advantages such as
railways, nuclear power, space technology,
and those where Vietnam has advantages
such as agriculture, tourism, fisheries and
human resources.
Especially, in the field of tourism and
culture, rapid increases have been recorded
in accordance with the global trend for the
past few years. Only in 2017, more than
500,000 Russian visitors came to Vietnam,
which nearly doubled the figure of five
years earlier. With the current growth rate
of 30% per year, it is expected that by 2020,
1,000,000 Russian tourists will choose
Vietnam as their destination [6].
On multilateral cooperation:
Vietnam and the Russian Federation will
jointly build a system of multi-polar, equal
and democratic international relations,
based on the principle of broad cooperation
between countries and organisations,
uniform rules for all nations, the supremacy
of international law and the solid role of the
United Nations as a centre for regulating
and coordinating world politics.
In reality, the FTA has had a positive
impact reflected by the Vietnam - Russia
bilateral trade turnover which has increased
more quickly such as a 31% growth rate of
2017 compared to 2016, and a 35.7%
growth rate in the first ten months of 2018.
Vietnam and Russia promote bilateral and
multilateral cooperation to combat the
increasing risks of using information and
communication technology for criminal and
terrorist purposes, including the purpose of
sabotaging the security of nations.
High-tech is also a field prioritised by
the two countries. Russia is a country with
strong capabilities in the field of nuclear
development, defence industry, aviation and
space. The two countries have reached
cooperation agreements in the use of the
GLONASS system, application of information
technology in urban management, building
e-government, etc. In the upcoming future,
if Vietnam re-starts its nuclear power
programme, the Russian Federation will be
its top priority for cooperation.
Vietnam and Russia affirm to develop
cooperation in the fight against terrorism,
transnational organised crime, production and
circulation of illegal drugs, corruption and
other challenges and risks of loss of security.
Russia and Vietnam always closely
cooperate and coordinate in multilateral
fora of negotiation, where international
The promotion of cooperation in the security issues are discussed, including
fields of agriculture, fisheries, forestry, arms control, disarmament and non-
industry to serve agriculture, irrigation, proliferation of weapons of mass
prevention and control of natural disasters destruction. The two sides affirm the
towards sustainable development, is also importance and necessity of the UN
emphasised on by the two countries.
military disarmament mechanism, including
10
Nguyen Quang Thuan
Commission 1 of the United Nations General international law via promoting dialogue
Assembly, Conference on Disarmament and and cooperation within the framework of
the United Nations Commission on ASEAN-led fora such as ASEAN-Russia,
Disarmament, to develop multilateral ASEAN Regional Forum on Security
agreements to maintain international (ARF), East Asia Summit (EAS), ASEAN
security and to ensure strategic stability.
Defense Ministers Meeting with Dialogue
Partners (ADMM +) ...
The two sides express their support for
the international community's efforts to
It can be seen that there have been many
strengthen the legal base to fight terrorism positive impacts on the relations between
the two countries in recent years. However,
there are still many obstacles from the
globalisation trend or the regional and
international context, which results in the
relationship between Vietnam and Russia
being not developed in accordance with the
potentialities and needs of both sides.
and the use of weapons of mass destruction
for terrorist purposes.
The leaders of the two countries have
always emphasised that border and
territorial disputes and other disputes in the
Asia-Pacific region should be addressed by
stakeholders by peaceful means, with the
restraint from the use of force or threat to
use force, on the basis of international law,
including the 1982 United Nations
Convention on the Law of the Sea, to
ensure peace, stability and security in the
region. Vietnam and Russia support the full
and effective implementation of the
Declaration on the Conduct of Parties in the
Biển Đông (East Sea, i.e. South China Sea)
of 2002 and welcome the efforts of the
parties to soon adopt the Code of Conduct
of Parties in the South China Sea.
First of all, in terms of economy, the
growth rate is quite high, but so far,
Vietnam-Russia trade turnover is only USD
4 billion, while the former’s total import-
export turnover is nearly USD 480 billion.
The figure of USD 4 billion is also quite far
from the USD 10 billion goal set by the two
sides ten years ago. Accounting for a high
proportion still is the simply processed
products and fuel and raw materials, which
is different from the general trend of
increasing the proportion of services and
goods with high technology contents.
Both countries consider maintaining
peace and stability, strengthening mutual
trust to be the core factors to ensure stable
development of the Asia-Pacific region as
With regard to investment activities, there
is still a "paradox" of the poorer Vietnam
investing more in Russia than vice versa.
one of the centre of the new multipolar Especially, there is a large imbalance between
world order.
the cooperation in security and defence and
that of trade and economic fields.
As General Secretary of the CPV
Nguyen Phu Trong and President V.Putin
Currently, Vietnam is implementing a
have affirmed, it is necessary to continue policy of multilateralising its military
the joint efforts to build in the region an cooperation,
diversifying the arms
equal and undivided security structure of suppliers. However, in the period 2012-
an open, inclusive and transparent 2016, Russian weapons still accounted for
character, based on compliance with 88% of the volume of Vietnam’s imported
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Vietnam Social Sciences, No. 1 (195) - 2020
weapons. Moscow provides Vietnam with Russian Federation is facing huge
most of the types of important weapons. It opportunities
and
challenges.
The
is clear that Russia plays the No. 1 adjustments of the policies of each of the
important role in ensuring the latter's countries to take advantage of opportunities
defence security, yet it is not included in and overcome challenges, and to strengthen
Hanoi’s top ten trading partners. In the their comprehensive strategic partnership to
trend of powers adjusting their strategies be more and more profound and practical,
towards increasing unilateralism and are essential.
putting national interests above all, making
the trend of competition increasingly fierce
Note
in terms of both economic strength and
defence, the imbalance between the two
important areas needs to be overcome.
1 This paper was translated by Luong Quang Luyen.
Edited by Etienne Mahler.
In terms of economic benefits, the
Vietnam - Russia trade turnover, being only
USD 4 billion, is not comparable to Russia -
China trade of nearly USD 100 billion.
And, if compared with Vietnam's total
import and export turnover of nearly USD
480 billion, it is clear that the trade benefits
with Russia so far are also modest.
References
[1] Lauder, H., Brown, P., Dillabough, J. A., and
Halsey, H. (eds) (2006), Education,
Globalization and Social Change, Oxford:
Oxford University Press.
[2] O'Loughlin, J., Staeheli, L., and Greenberg, E.
(2004), Globalization and its Outcomes, The
Guilford Press.
4. Conclusion
The industrial revolution 4.0 and the
changing position and role of great powers
such as the US, EU, China and Russia have
been greatly changing the world economy,
politics and security so far and in the years
to come. With high-level visits by Russian
leaders to Vietnam and by Vietnamese
leaders to Russia, shown were good
prospects of the relations between the two
countries in the future. Despite the impact
of regional, domestic and international
changes, the relationship will remain
unchanged and be increasingly consolidated
and developed.
[3] Stiglitz, J. E. (2002), Globalization and Its
Discontents, New York: W. W. Norton.
[4] Schwab, Klaus (2019), “Globalization 4.0”,
Foreign Affairs, https://www.foreignaffairs.com/
retrieved on 14 February 2019
[5] Russian President's Visit to Vietnam
Highlighted in World Press (2013),
gioi-106756.htm, retrieved on 10 March 2019.
retrieved on 15 May 2019.
In the current trend of globalisation 4.0,
the relationship between Vietnam and the
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