VIETNAM ACADEMY OF SOCIAL SCIENCES (VASS) GRADUATE ACADEMY OF SOCIAL SCIENCES (GASS) NGUYEN XUAN BACH CHINA'S ECONOMIC TIES WITH AFRICA FROM THE YEAR 2000 TO PRESENT AND POLICY IMPLICATIONS FOR VIETNAM Sector: International Economics Code: 31 01 06 SUMMARY OF DOCTORAL THESIS Hanoi, 2019 VIETNAM ACADEMY OF SOCIAL SCIENCES GRADUATE ACADEMY OF SOCIAL SCIENCES Supervisors: Assoc Prof./Dr Bui Nhat Quang Assoc Prof./Dr Nguyen Manh Hung Opponents: Assoc Prof Dr Doan Ke Bon Assoc Prof Dr Pham Thai Quoc Assoc Prof Dr Pham Thu Huong The PhD Thesis is defended at the PhD Thesis Evaluation Council, Graduate Academy of Social Sciences, No 477 Nguyen Trai Street, Thanh Xuan District, Hanoi Available at: - National Library of Vietnam - Library of Graduate Academy of Social Sciences PREAMBLE Urgency of the thesis Since the Forum on China–Africa Cooperation (FOCAC) was held in 2000 and implementation of the “Going Global Strategy”, Africa–China relations has entered into the new development stage, in many sectors from economics to politics, diplomacy, culture and society With the target on economic recovery, acceleration of the Millennium Development Goals (MDGs) and Sustainable Development Goals (SDGs) in the period from 2015 to 2030, many African countries has considered China being an emerging economy, able to cooperate with and seek for common progress and development To China, Africa is rich in natural resources with the large market size, being in need of political stability and economic development Expanding relations with African countries is a strategic foreign mission of China in order to build and maintain influence in the Dark Continent and world The White paper on Africa in 2006 emphasized the issue of economic cooperation, concentrating on key sectors such as trade, agricultural investment, economic assistance etc Up to present, China has become the biggest trade partner in Africa, while also one of the major sponsors for this continent’s development Development conditions and wills of each party show that China-Africa economic and trade cooperation share huge potential/ is numerous Like China, Vietnam has a close traditional friendship relationship with many African countries, coming from shared and common sense in the struggle for independence and national liberation From the adoption of Doi Moi, Vietnam's foreign policy emphasizes respect for independence, sovereignty, not interfering in internal affairs, fighting for peace and development, and promoting the role Asian and African countries which have been supported and approved by many African countries However, over the past years, we have not taken advantage of this good traditional relationship to increase Vietnam-Africa relations for reaching a new height Stemming from this practice, it is necessary to choose the thesis "China's economic ties with Africa from year 2000 to present and policy implications for Vietnam” that is urgently in both theory and practice, in order to assess the impact of economic relations of China with African countries, for drawing lessons and policy proposals to promote Vietnam’s economic relations with Africa in the coming time The purpose and tasks of the research: 2.1 The purpose of research: By clarifying the actual situation of China's economic relations with Africa as from 2000 up to present, analyzing successes and limitations of this relationship, drawing experience lessons and raising solutions to Vietnam for boosting Vietnam’s economic relationship to Africa in the time to come 2.2 Research tasks of the thesis: Firstly, systematize a number of theoretical aspects and research perspective on China's economic relations with Africa Secondly, study the current status of China's economic relations with Africa as from 2000 to present day; assess and forecast the development trend of China's economic relations with Africa Thirdly, propose some policy solutions for Vietnam to promote economic relations with Africa The object and scope of the research - Research object of the thesis: China's economic relations with Africa, of which focuses on three areas: trade relations, investment relations and development assistance relations - Research scope of the thesis: + Spatial scope As Africa includes a continent of 55 countries, so the thesis will concentrate mainly on China's major economic partners in Africa, especially focusing on the Top 10 African countries as trading and investment partners and China's largest aid recipients These are African countries that China has a great influence on economics and politics and African economies that have geo-economic and geopolitical potential in economic relations with China + Time scope: As from 2000 to present + Content scope: focusing on key areas as trade, investment and development assistance Due to the asymmetric nature of China's economic relations with Africa (the size of China's economy is much larger than the size of economies in Africa), this Dissertation approaches this relationship mainly in the direction from China, especially in investment relations (mainly Chinese investment in Africa), trade relations (China’s bilateral import and export with Africa) and aid (Chinese aid to Africa) as well as Chinese policies towards Africa Approaches, research methodology and analytical framework 4.1 Approaches to research issue + Historical approach + Benefit approach + Interdisciplinary approach 4.2 Research Methods - In the process of research, the thesis uses many scientific research methods as follows: - Historical divergence used for analyzing, assessing China’s economic relations with Africa in stages - Methods of synthesis, analysis and comparison - Simple Statistical Analysis (absolute value, relative value, frequency ), description through drawings, diagrams and charts - Case study method: cases are in depth study of the thesis are China's economic relations with three African countries such as: South Africa, Nigeria and Ethiopia - Forecasting methods, based on scenarios with major factors affecting the socio-economic development of China and African countries - Expert interviews: in this thesis, interviews will be carried out with some Vietnamese experts on China’s economic relationship with Africa in recent years and points of view of experts on solutions to promote Vietnam - Africa economic relations in the coming time It is necessary to find contents, opinions of policy makers and actual activists in Africa; and giving a number of recommendations for solutions that are more practical for thesis + Data source: the thesis mainly uses secondary documents The thesis also uses a number of primary documents, taken from the Department of West Asian - Africa Affairs under the Ministry of Foreign Affairs and the Institute for Africa and Middle East Studies (IAMES) These are the evaluation documents in reality of survey of Vietnam’s scholars, diplomats and leaders to some African countries in the past time These documents will help the thesis author to have more practical information and knowledge to evaluate Vietnam’s economic relationship with Africa in the past time and make recommendation for solutions after studying the lesson from China’s relation with African countries 4.3 Analytical framework of the thesis: On that basis, the thesis makes an analytical framework as follows: China's economic relation with Africa Evaluate Evaluate Evaluate impacts Evaluate prospects motivation status of the of the relationship of the relationship of the relationship relationship through benefit analysis through criteria for measuring trade, investment and aid relations through factors affecting trade, investment and aid relations - from different points of view: The point of view of mutuallybeneficial cooperation among developing economies; China’s doctrine of “Community of Common Destiny” Perspectives on dependency and new colonialism - Through new context and factor: + China’s development of China; Africa’s development; the world’s development context and Africa’s features + China's contradictions: between short-term economic benefits and overall benefits; between the goal to strengthen the comprehensive power and the goal of building a good image; between national development benefits and Africa's long-term development interests New contributions of the thesis Regarding scientific theoretical point: the thesis contributes to prove that China's economic relations with Africa have reached certain successes, brought positive effect on some African economies However, the thesis also pointed out the trend of a new version of Colonialism of China in Africa, reflected by policies and activities of exploiting resources, markets, aid and Chinese immigrants in African countries In dealing with economic relations with Africa, China is also facing many conflicts difficult to resolve, including a conflict between short-term economic benefits and political and diplomatic interests in their efforts to increase the status and influence in this continent Regarding policies contribution, by analyzing China’s economic relations with Africa, this thesis also said that Vietnam needs to develop the traditional relationship with African countries; the use of foreign policy is a connection to speed up economic relationship between Vietnam and African countries in the coming time Structure of the thesis In addition to the introduction, conclusions and references, the thesis consists of four main chapters as follows: Chapter 1: Overview of research studies related to the thesis Chapter 2: Theoretical and practical bases of China’s economic relations with Africa Chapter 3: China's economic relations with Africa from 2000 to present Chapter 4: Prospects of China's economic relations with Africa and policy implications for Vietnam CHAPTER OVERVIEW OF RESEARCH STUDIES RELATED TO THE THESIS 1.1 Domestic studies Economic relations between China and African nations have generated much interest among development experts and practitioners over the last years Research studies can be classified in contents under the following items: i) to make research on the relationship of the major countries to African region, of which including China's relationship with Africa; and ii) to study China's economic relations with Africa 1.2 Foreign researches Foreign documents on China's relationship with Africa are numerous, scholars in the world are also very interested in research of China’s economic relations with Africa, focusing on the following key themes: i) firstly, studies on overall picture of China’s economic cooperation and policy with Africa Secondly, researches in the areas of economic cooperation between China and Africa in particular of trade, investment, agricultural development building infrastructure, development aid, etc Thirdly, studies on China’s economic relations with some major African countries Fourthly, researches on China's policies with Africa after the 19th National Congress of the Communist Party of China 1.3 Conclusion drawn based on the research results related to the thesis topic and the issue for further research * Contents inherited based on the research results related to the thesis Domestic and foreign studies have provided diverse materials with different analytical points of view on China’s relations with African countries Through these research projects, the author can inherit a number of the following basic contents: Firstly, it provides an overall picture on the socio-economic development status in Africa in general, and some countries in Africa in particular Through this overall picture, it has been found that African countries are in need for economic reforms and development, but they are lack of investment capital, technology and other development resources In recent time, African countries have received much support from major countries in the world, including the U.S.A, EU, China, Japan, and each major country builds their own political and economic cooperation strategies for the African region Secondly, previous projects have analyzed China's economic relations with the African region across fields: trade, investment, aid Through these studies, it can be inherited different documents and data related to specific issues such as cooperation relations in energy, oil, investment, aid, etc between China and African countries These are extremely useful documents, helping the author get basic knowledge on China’s economic relations with Africa over the past time Thirdly, previous studies have analyzed and evaluated China's role and influence in the African region, positive and negative impacts from China's economic projects on some countries in Africa, influence competition of major countries in Africa and China’s ways to penetrate the African markets These issues are chosen selectively by the dissertation author, leading more definite and clearly points of view and approaches to China's influence and economic role in Africa in general and some African countries in particular way Fourthly, writers in the previous projects have drawn some lessons for developing countries in receiving the wave of investment and trading from China As a developing country, Vietnam should also refer to these lessons This is also an issue that the thesis can succeed selectively * Research gap and thesis approach: Firstly, research projects related to the thesis are extremely diverse and abundant, only at analyzing the actual situation of China's economic relations with Africa, the benefit motive behind China’s relations with Africa; but has not clarified the potentials, advantages and factors affecting the economic cooperation relationship between China and Africa, of which includes objective factors, some factors belonged to China and some elements of African countries These new points will be found out by the dissertation for searching and clarification Secondly, documents for research in relation to this thesis have assessed the relationship between China and Africa on a variety of different approaches, with distinguished perspectives, both with a favorable view towards China, and with a viewpoint in order to criticize China taking African countries unsustainable development, creating "new colonialism", with a bias in favour of African countries It is understandable by research projects related to the thesis is in diversity, from Chinese researchers, to Asian and Western CHAPTER THEORETICAL AND PRACTICAL BASES OF CHINA’S ECONOMIC TIES WITH AFRICA 2.1 Theoretical bases for evaluating China's economic relations with Africa 2.1.1 Some arguments about China's economic relations with Africa Argument based on some traditional theories on economic cooperation Theoretical points of view in favorable of boosting China’s economic relations with Africa show that this fits into the inevitable globalization and dynamic development trends world, reform process, opening up of China and Africa China and African countries are both developing economies, with potentials and comparative advantages that can complement each other Argument on the Community of Common Destiny by China This point of view delivered as China has been increasingly growing, to want more clearly its important role, especially for developing countries, by proposing models, initiatives and slogans in cooperation At the 19th National Congress of the Communist Party of China, General Secretary Xi Jinping emphasized two of China's overarching foreign goals in the new era: building new international relations and the Community of Common Destiny These are very attractive cooperative points for developing countries, including many African countries Especially, many of the points in building "Community of Common Destiny" have targeted the psychology and political views of many African countries that are not satisfied with the world order imposed by the United States of America and the West Argument on dependence and new colonialism It is said that the economic relationship with China does not form benefits to Africa in the long term Africa will likely increasingly depend on China that via its adopting trade, investment, immigration 10 and aid activities to build a “new colonialism” or “China’s new colonialism” in Africa 2.1.2 Impact factors and criteria for evaluating China's economic relations with Africa Impact factors Close political-diplomatic relations between China and African countries: Differences in absolute and relative advantages between China and Africa: Differences in levels of development and technology: Differences in economic size: China’s strategies and policies: Evaluation criteria Within the scope of this dissertation’s research, the criteria to evaluate China’s relations with Africa though three major areas: trade, investment and development aid as follows: Trade relations: - Import and export turnover by two countries: - The main kinds of export and import goods by two countries: - Trade deficit and surplus by two countries - China's major trading partners in Africa: - The proportion of each side’s import-export turnover compared with the total import-export turnover and other partners: Investment relations (mainly China’s foreign direct investment into Africa): - Value of investment capital and number of investment projects (mainly China’s investment into Africa): - Key investment sectors: - China’s major investment areas in Africa: - Proportion of investment capital in a total of foreign investment capital of each side: 11 Development aid relations (China in aid and African countries being recipients): - The total amount of aid through stages, years: - Major sectors, projects, recipients of aid in Africa: 2.2 Practical bases of China's economic relations with Africa 2.2.1 The rise of China’s economy and Africa’s potentials With the rise of economy and the increasing political influence on the global scale, China is increasingly interested in Africa for exploitation of its development and empowerment China has emerged as an important strategic partner for Africa African countries need to enhance economic relations with China to fulfill their socio-economic and poverty eradication goals 2.2.2 History of China's policies & relations towards Africa China and African countries maintain a close traditional relationship; while the US and Western countries always require binding conditions on economics & politics as establishing relationships with African countries, China's foreign policy has always emphasized the type of win-win cooperation, upholding the principle of non-interference in each other's internal affairs and, not imposing social regimes or ideological models for African countries which China has helped This diplomatic principle has just made China to gain certain advantages in diplomatic relations with Africa Having followed a path of development to affirm the position as a world Power in both economics, politics and military, China has applied a policy of wisdom, persistence, efficiency, based on the power of money and soft diplomacy for regional organizations as well as countries in order to enlist the support of African governments and take advantage of comprehensive benefits in this continent 2.2.3 Benefits concern of China and Africa China's concerns for Africa Firstly, to approach and exploit rich and diverse natural resources from the continent; Secondly, to develop China's commodity export 12 market; Thirdly, to expand influence, seek the support of African countries at international forums In general, China's benefit concerns in Africa has made drastic changes in its stages of development: from pursuing political perspective as major benefit in the pre-1980s period to following economics as major benefits; a gradual shift to comprehensive benefit of which economics interest as foundation, especially from the early 2000s to present In particular, in the last years, that comprehensive benefit concern is also accompanied with China's strategy on expansion of influence and global power African countries’ concerns for China Firstly, to support the political institutions of African countries; Secondly, Africa wants China to increasingly assist in economics CHAPTER REALITIES OF CHINA'S ECONOMIC TIES WITH AFRICA SINCE 2000 TO PRESENT 3.1 Realities of China's trading relations with Africa China’s trading activity in Africa principally focused on countries abundant in natural resources and that recognize China as a Market Economy Since 2000, trade relations between China and Africa have increased significantly and remarkably For the period of 2004-2014, the growth rate in trade between China and Africa reached 24.4% per year This is the highest trading growth rate among major partners of Africa such as the US, Europe and Japan However, China's trade with Africa has declined after the peak of 2014 due to China’s economic slowdown in the process of adjusting the growth model and the drop in resource prices China - Africa trade turn-over in 2016 was only about 149 billion USD, of which China’s export turnover into Africa reached 92,3 billion USD1 Trade deficit has reversed after 2014 along with China’s decrease of imports of natural 13 resources in the process of transformation of economic growth pattern In the structure of China’s goods import from Africa, raw materials and resources account for the majority The structure of Chinese goods exports to Africa remains diverse, but still focuses primarily on transport machinery and equipment, manufactured goods and handicrafts Although China-Africa trade relations since 2000 have grown very rapidly, import and export structure has become more and more diversified, but China's trade activities in Africa only in a number of countries, such as: South Africa, Angola, Nigeria, Congo, Ghana, Sudan, Zambia, Tanzania, Kenya, Benin and Mozambique China’s trade growth of major partners in Africa remains strong 3.2 Realities of China's investment relations with Africa China and many African countries have signed Bilateral Investment Treaties (BITs) To complement BITs, China has entered into 11 Double Taxation Agreements (DTAs) with African countries In addition, China has established special economic zones (SEZs) in Africa to support Chinese enterprises subject to foreign investment policies and facilitate Africa’s exports to China By the end of 2012, China's total Outward Foreign Direct Investments (OFDI) stood at 531.94 billion USD, of which China's total FDI accumulative in Africa reached 21.73 billion USD, accounting for 4.1% of China's OFDI capital EU, China, Japan and the US make up 54% of OFDI in the Sub-Saharan Africa in 2012 Total cumulative capital of China, Japan, the US and EU in the SubSaharan Africa have increased nearly fivefold from 2001 to 2012, from 27.2 billion USD up 132.8 billion USD The capital accumulative of these four countries has grown very rapidly since 2001 principally because in this time, China has invested the large amount of FDI into Africa, with the growth rate standing at 53% per year, while Japan only reached at the rate of 29%/year, EU reached 16% /year and US reached 14% /year China is the 2nd largest foreign partner in Africa, trailed behind EU on FDI At the first time, in 2013, China's FDI in Africa reached 26 billion USD, exceeding the 14 US (United States gained 22 billion USD) During 2005-2016, China has invested a total of US$66.4bn in 293 projects in Africa since 2015, altogether creating 130,750 jobs China has invested FDI mainly covering resource-rich nations Chinese enterprises are located mainly in Nigeria, South Africa, Zambia, Ethiopia, Egypt, Ghana, Tanzania, Democratic Republic of Congo, Sudan By the end of 2011, China has achieved FDI investment diversified across economic sectors as follows: resource exploitation (31%), finance (20%), construction industry (16.4%), manufacturing (15%), the rest on other areas such as retail and wholesale trade, agriculture, forestry and fishery, scientific research, real estate, leasing and business services China’s outward foreign investment in agricultural sector in Africa are rising sharply in various forms, including aid projects, agricultural infrastructure investment projects, agricultural technology investment projects and training programs 3.3 Realities of China's aid to Africa In the 1st China's White Paper on Foreign Aid, it is asserted that “China never uses foreign aid as a means to interfere in recipient countries' internal affairs or seek political privileges for itself” China maintains that foreign aid is adhering to equality, mutual benefit and common development, mutual help between developing countries, focuses on practical effects, accommodates recipient countries' interests …” [68] In the 2nd China's White Paper on Foreign Aid (released in 2014), China emphasized that aid mechanism for Africa is through Forum on China-Africa Cooperation (FOCAC), China's assistance will be primarily used in the areas of agricultural development, infrastructure, promoting regional economic integration, medical care and health cooperation, enhancing the mechanism and capacity building, climate change response and some other areas [88] In formal, China's Foreign Aid to Africa is very diverse, may temporarily provided two types as follows: Official Development Assistance (ODA) and Official Offshore Fund (OOF) About ODA, 15 China applied forms of ODA such as technical assistance or scholar exchange, debt with large grants, purposeful subsidies, debt reduction, purposeful military aid About OOF, there is a loan with small grants, non-purpose loans, low interest loans In the subject, China's foreign aid for Africa is in-charge of various agencies The Chinese government encourages its agencies and commercial entities to closely mix and combine foreign aid, direct investment, service contracts, labor cooperation, foreign trade and export aimed to maximize feasibility and flexibility of Chinese projects to meet local realities in the recipient country Since the FOCAC held in 2000, China’s aid and investment flows have increased rapidly over time Estimates for the period 2000-2011, China had provided 1,673 projects for 50 countries in Africa [49] in forms of different aid, in which at least 62% of projects (1,422 projects) has been properly committed, totaling 75.4 billion USD Chinese foreign aid to Africa accounted for nearly half of Chinese aid in total in 2009 [49] In aid recipient sectors, in the period of 2000-2011, Chinese aid in Africa in value has been focused most on transport and warehousing; construction of power plants, community building, agriculture, forestry and fisheries, trade and tourism In number of projects, the areas received the most aid is government and civil society, health and education [46] In aid recipients from China, African countries have received the most aid by capital values inclusive of Ghana, Nigeria, Sudan, Ethiopia, Mauritania, Angola, Zimbabwe, Equatorial Guinea, Cameroon and South Africa 3.4 Assessment of actual status of China's economic relations with Africa since 2000 to present 3.4.1 Results achieved Firstly, China has satisfied the thirst for resources abroad in meeting the demand of domestic economic growth; Secondly, China has penetrated in Africa for its cheap consumer commodities that are being massively produced in the 16 country, effectively serving China's export-oriented industrialization strategy Thirdly, China's economic benefits brought in Africa are huge, including revenue, profit, and employment Fourthly, China has influenced on African countries thanks to huge financial aid 3.4.2 Issues and causes Firstly, the economic linkage between Chinese enterprises and local entities in African countries remains weak and ineffective; Secondly, China’s cheap goods have eroded the industrialization strategy of some African countries; Thirdly, problems masked from Chinese investment projects in African countries; Fourthly, China is being "blamed" for abetting corruption and instability in Africa Chapter OUTLOOK OF CHINA’S RELATIONS ECONOMICS WITH AFRICA AND POLICY IMPLICATIONS FOR VIETNAM 4.1 China’s relations economics outlook with Africa in the new period There are three sets of factors that will affect China's economic relations with African countries in the coming time, including: The set of factors from China Two significant factors affecting the stability and expansion of China's economic relations with African countries, as follows: 1) Attractiveness of China’s economy; and 2) Settlement of bottlenecks constraining in China's relations with African countries to building lasting trust A major limit in China's current strategy 17 with Africa is that it is difficult to maintain a balance between economic and political-diplomacy interests The set of factors from Africa’s development The continent of Africa is still facing many political-security challenges, especially, escalation of violence and terrorism Some countries have successfully reformed, attained admirable development achievements but some had failed and efforts to institutional reform even push the country to unremitting instability [74] Africa in poverty with obsolete models remains in existence or in slow changes just because political forces in power in these impoverished countries to maintain it for protection of their interests [44] Development context of the world and some specific issues of the region Commodity prices continue to remain low in the coming time, which will strongly affect the growth of African economies, especially those are heavily dependent on resource exports, in which China is a large import partner This will lose the dynamic of China's economic relations with the region, and force the two sides to adjust their economic relations in depth and improve quality instead of quantity The current international environment is facilitating to expand the Chinese influence in Africa In general, China's relations with African countries in the context of adjusting its development mode and, changes in the world will continue to be pragmatic, focus on economic benefits and lack of strategic trust Those characteristics will put this relationship heading more challenges than opportunities 4.2 Situation of Vietnam’s economic relations with Africa over the last time 4.2.1 Vietnam - Africa trade - investment activities over the last period of time Vietnam has a close traditional friendship relationship with many African countries, coming from shared and common sense in the struggle for independence and national liberation Implementing consistently a Vietnam's foreign policy of peace and development, 18 and improving the greater role of Asian and African countries since their reforms which have been supported by African countries However, Vietnam has not taken advantage of this close politicaldiplomacy traditional relationship to boost economic relations Currently, Vietnam’s trading-investment relations with Africa are in strain compared with other regions Vietnam has actively promoted export diversification to Africa, not solidified its market share yet Vietnam’s goods are less competitive compared to other countries, especially in comparison with China, Thailand, Malaysia In the investment sector, Africa-Vietnam investment capitals are still small, has not really commensurate with the existing potential of both sides In the area of investment cooperation, government of African countries highly appreciate Vietnam's achievements in the agricultural and industrial sectors and it is expected that Vietnam's public and private enterprises to increase investment in these countries, especially in the sectors of mechanics and electronics, textile, agriculture, food processing Some Vietnamese enterprises have surveyed and researched investment markets in many African countries, market information, business practices, but still have not found a common voice to promote investment cooperation over the last time 4.2.2 Success and restraint in Vietnam’s economic relations with Africa over the last time and causes * Success and causes First of all, Vietnam’s trade relations with African countries have increased consecutively both in quantity, turnover, import & export goods and import-export partners Africa has become an important market to Vietnam In investment ties, Vietnam has not invested in many projects in Africa, but these projects are highly appreciated by African countries on technology (oil and gas, agricultural technology, electronics, telecommunications, food processing), especially not 19 causing environmental pollution cases or adversely affecting the social security of the local country In the exchange of experts and development aid, Vietnam does not approach large projects in proportion to potential of both sides Initial successes in Vietnam-Africa economic relationship has been achieved by some of the following causes: Firstly, status of close traditional diplomatic cooperation between Vietnam and African countries since the Asian–African Conference (also known as the Bandung Conference) held in 1955 to present created solid foundation and basis to promote economic relations on both sides Secondly, Vietnam and African countries are highly complementary to each other with huge potentials for economic cooperation Thirdly, Vietnam and African countries have developed bilateral, multilateral, local and enterprise cooperation mechanisms, facilitating bilateral cooperative relationship * Restraint and causes: Firstly, political and diplomatic relations between Vietnam and African countries have not been leveled with their potential and advantages, so it cannot force to promote economic cooperation Secondly, Vietnam-Africa trade relations are in favor of trade surplus with Vietnam This shows that their potentials have been not exploited in full Thirdly, Vietnam's investment and aid cooperation relations with Africa have impeded due to lack of large capital and foreign currency of Vietnamese enterprises Their major causes as follows: - Vietnam and Africa affected by geographical distance - Vietnam is not capable of manpower and capital to achieve longterm strategies like China in order to boost economic cooperation with Africa 20 - The legal framework creating favorable conditions for trade, investment, finance, banking between Vietnam and African countries remains incomplete - Vietnam and African countries seriously lack cooperation agreements in the fields of finance and banking, so they face many difficulties in import and export payment and capital approach 4.3 Lessons for Vietnam from China - Africa economic relations Firstly, select partners appropriately and approach more actively in diplomatic relations; Secondly, promote the potential and advantages, diversifying economic ties, make up for deficiencies in development of the national economy Thirdly, plan ways to expand economic relations with African partners Fourthly, the lesson on selecting mechanisms and modes of cooperation with Africa 4.4 Policy implication for Vietnam Firstly, it is necessary to further strengthen political and diplomatic relations with African countries to create a solid foundation for economic cooperation Secondly, continue to complete the legal framework to enhance economic cooperation between Vietnam and African countries Thirdly, it is necessary to quickly develop Vietnam's banking cooperation project with a number of African countries in order to solve difficulties in payment activities for Vietnam’s enterprises in the African market Fourthly, it is essential to encourage and establish favorable mechanisms for Vietnam’s enterprises to actively seek and participate in trade cooperation, investment, joint ventures and cooperation with African partners, especially in countries with large market size, with potentials of oil, minerals and economic geopolitical 21 Fifthly, promote bilateral, tripartite, four-party cooperation models between Vietnam and an African country and an international organization (or a third country) Sixthly, boosting Vietnam’s cooperation models to be great of advantages into African countries, especially agriculture In addition to the cooperation in agricultural sector, Vietnam’s enterprises need to actively seek and actively participate in development and reconstruction projects in Africa, primarily in the areas in urgent needs such as transport & communication, post telecommunications, housing, bridges, schools, hospitals thereby promoting exchange of experts, providing Vietnamese workers, supporting human resource training for Africa in their development projects CONCLUSION China’s benefit concerns and policies to Africa have been made important adjustments since the early 2000s, especially after the 19th National Congress, presenting a shift from emphasizing economic cooperation to cooperating comprehensively, using many channels of cooperation, of which economics is considered a key sector, carrying out diplomatic activities being foundation and link for paving the way, at the same time attached to the goal of expanding China’s global influence In general, compared to the Western powers, China retains the image of emerging power which is more sympathetic because of the policy of "non-interference in internal affairs" and relationship of cooperation and assistance in the struggle for national liberation of African countries Moreover, it is asserted that China is indispensable in role and position in the continent's socio-economic development process However, Africa’s development and the increase of China’s activity have demanded to change Chinese traditional policies China quietly abandoned the policy of “non-interference” before and 22 followed the policy “creative interference” instead or the policy “influence without interference” The nature of this policy is to indirectly influence or intervene in the region through different mechanisms, from aid, trade and investment activities and migration A major constraint in China's current strategy with Africa: it is difficult to maintain a balanced relationship between economic and political-diplomacy interests China still lacks a strategy to resolve conflicts between prioritizing economic development and other goals in Africa, between short-term economic benefits and long-term economic interests Chinese businesses sought to maximize their economic interests in Africa, which eroded the foundation for political relations The pursuit of China’s business community in utilizing/maximizing business profits has caused social, economic and environmental impacts, affected the sustainable development of African local communities Overall, China's relations with Africa in the coming time will be continuously pragmatic, emphasize on economic benefits and lack strategic trust Those characteristics will put this relationship ahead of more challenges than opportunities Therefore, challenges for African countries on the risk of environmental pollution and becoming an industrial waste dump will continue to be very large in the future Moreover, under the pressure of domestic population and employment, flow of Chinese immigrants to Africa will continuously increase rapidly, causing much tension in China’s relationship with African countries With the current limitations and drawbacks, it is difficult for China to harmonize the three contradictions in the relationship with Africa: it is a conflict between the short-term economic interests in the region and the overall benefit, accompanied with, a conflict between pragmatic values in China's diplomatic strategy and common core standards and trends in development of the world; contradiction between the goal to enhance/strengthen the comprehensive national power and position in a global strategy with the aim of building a better image and a stronger position in the region; and finally, the conflict between the needs and interests of 23 national development with the long-term and sustainable development needs and interests of countries in Africa Although having a close traditional tie with African countries, Vietnam has not taken advantage of this relationship to promote economic relations with the continent Gaining valuable experience from China, Vietnam might need to be more active in approaching the African market, exploiting its economic strengths, and step by step establishing a firm position for enterprises and products in the regional market 24 ... large capital and foreign currency of Vietnamese enterprises Their major causes as follows: - Vietnam and Africa affected by geographical distance - Vietnam is not capable of manpower and capital... to increase Vietnam-Africa relations for reaching a new height Stemming from this practice, it is necessary to choose the thesis "China's economic ties with Africa from year 2000 to present and... with Africa as from 2000 up to present, analyzing successes and limitations of this relationship, drawing experience lessons and raising solutions to Vietnam for boosting Vietnam’s economic relationship