Vietnam takes a risk and a chance on BRICS

Vietnam aligns with Russia-China-led bloc while bidding to maintain strategic partnership and market access with US.

On June 13, 2025, BRICS officially welcomed Vietnam as “a partner country”, marking a significant milestone in Hanoi’s foreign policy. This decision reflects a carefully planned strategy, developed over years, to diversify Vietnam’s international relations and strengthen its position in a multipolar world.

By aligning with BRICS – a bloc comprising Brazil, Russia, India, China, and South Africa, and recently expanded to include other emerging economies –Vietnam aims to reduce its dependence on specific partners while navigating complex global dynamics.

Vietnam’s relationship with the United States, elevated to a comprehensive strategic partnership in September 2023, has faced challenges since the re-election of President Donald Trump.

The Trump administration has imposed stringent tariff barriers and scrutinized Vietnam’s trade practices, particularly its role as a potential conduit for Chinese goods entering the US market.

Hanoi, acutely aware of these tensions, seeks to balance its economic ties with the US by deepening engagement with other global players. Joining BRICS is a strategic step in this direction, aligning Vietnam with a bloc that collectively represents over 40% of the world’s population and a significant share of global GDP.

Vietnam’s accession to BRICS, even as a partner rather than a full member, carries both opportunities and risks. On one hand, it enhances Hanoi’s access to economic resources, particularly from China, a dominant BRICS member.

Recent agreements with Beijing, including financing for a high-speed railway project connecting Vietnam and China and other infrastructure initiatives, underscore Vietnam’s reliance on Chinese loans and technical expertise.

These projects are critical for modernizing Vietnam’s economy, which remains heavily dependent on foreign investment to sustain growth. BRICS membership also offers Vietnam a platform to advocate for a more equitable global economic order, aligning with the bloc’s calls for reforming institutions like the United Nations and the World Bank.

However, this move risks straining relations with the US under the Trump administration, which targets China’s economic influence. The US has expressed concerns that Vietnam serves as a transit hub for Chinese goods relabeled to evade US tariffs.

If Hanoi fails to address these concerns, it could face punitive sanctions, disrupting its export-driven economy, which relies heavily on the US market. Such measures could also destabilize Vietnam’s domestic political landscape, as economic downturns often fuel public discontent.

To mitigate this, Vietnam has intensified efforts to enhance transparency in trade practices. Recent nationwide crackdowns in Vietnam by the economic police and the Market Management forces on goods lacking clear origins or invoices demonstrate Hanoi’s commitment to aligning with international trade standards.

Vietnam has also made diplomatic gestures to maintain cordial ties with the US, such as facilitating projects by the Trump Organization. While these moves signal Hanoi’s desire to avoid antagonizing Washington, they are unlikely to resolve the core issue of Vietnam’s trade practices.

The Trump administration’s focus on “America First” policies leaves little room for compromise, placing Vietnam in an unstable position.

Moreover, BRICS’s push for global institutional reform highlights Vietnam’s own domestic challenges. The country has faced international criticism over issues like transparency, institutional accountability and restrictions on freedom of speech.

Without substantial internal reforms, Vietnam’s participation in BRICS risks being perceived as symbolic rather than substantive. For instance, Hanoi’s anti-corruption campaign, while notable, has yet to fully address systemic governance issues that could undermine its credibility within a bloc advocating for global equity.

Vietnam’s status as a partner country, rather than a full BRICS member, reflects a cautious foreign policy, aligning with its “bamboo diplomacy.” This half-step allows Hanoi to engage with the bloc without fully committing to its geopolitical agenda, which is heavily influenced by China and Russia.

However, this approach may limit Vietnam’s ability to shape BRICS’s vision for a new global economic order. Amid post-Covid economic recovery, Vietnam faces pressure to attract foreign capital from both China and the US while preserving its strategic autonomy.

Joining a China-Russia-led alliance raises questions about Hanoi’s ability to maintain its foreign policy of “independence, self-reliance, diversification and multilateralization of relations”, especially given ongoing disputes with Beijing in the South China Sea, where China’s assertive claims challenge Vietnam’s maritime rights.

Vietnam’s entry into BRICS as a partner country offers opportunities to diversify its economic and diplomatic ties but also poses critical challenges. Hanoi must navigate US-China tensions, address domestic governance issues, and clarify its trade practices to fully capitalize on BRICS membership.

Without internal reforms and strategic foresight, Vietnam risks being caught in a geopolitical tug-of-war, undermining its aspirations for independence and influence in a rapidly changing global order.

By Buu Nguyen – Asia Times – June 17, 2025