A man reads a newspaper reporting on Friday's death of Nguyen Phu Trong, the general secretary of the Communist Party of Vietnam. The results of Mr Trong’s approach might just be the envy of every foreign ministry in the Asia Pacific. AFP
A man reads a newspaper reporting on Friday's death of Nguyen Phu Trong, the general secretary of the Communist Party of Vietnam. The results of Mr Trong’s approach might just be the envy of every foreign ministry in the Asia Pacific. AFP
A man reads a newspaper reporting on Friday's death of Nguyen Phu Trong, the general secretary of the Communist Party of Vietnam. The results of Mr Trong’s approach might just be the envy of every foreign ministry in the Asia Pacific. AFP
A man reads a newspaper reporting on Friday's death of Nguyen Phu Trong, the general secretary of the Communist Party of Vietnam. The results of Mr Trong’s approach might just be the envy of every for


Vietnam is the better for Nguyen Phu Trong's 'bamboo diplomacy'


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July 25, 2024

South-East Asia is not short of leaders with considerable legacies, however varied their records may have been in other respects. Indonesia’s General Suharto managed to reduce inflation from 630 per cent in 1966 to under nine percent by 1972. Malaysia’s Dr Mahathir will always be remembered for the massive infrastructure projects undertaken in his first two decades in office, ending in 2003, including most famously Kuala Lumpur’s Petronas Twin Towers. Singapore’s Lee Kuan Yew turned a resource-poor island into a modern, advanced city-state. Vietnam’s Nguyen Phu Trong, who died last week aged 80, deserves to be counted among them.

To explain why, consider this: in September of last year, Vietnam hosted US President Joe Biden, a visit during which ties between the two countries were elevated to a comprehensive strategic partnership. The visit was so successful that on Mr Trong’s death, Mr Biden issued a statement of high praise. “The people of Vietnam and the United States – and people across the Indo-Pacific region – enjoy greater security and opportunity today because of the friendship between our two countries. That is thanks to him,” wrote Mr Biden.

Just three months after Mr Biden, China’s President Xi Jinping was in Hanoi. This also went so well that Mr Xi said it marked a “new historic milestone” in bilateral relations. The two countries announced the establishment of a strategic China-Vietnam “community of shared future” and signed 36 co-operation agreements.

In September last year, US President Joe Biden visited Vietnam. Just three months later, China’s President Xi Jinping was in Hanoi to meet Vietnamese leader Nguyen Phu Trong. AFP
In September last year, US President Joe Biden visited Vietnam. Just three months later, China’s President Xi Jinping was in Hanoi to meet Vietnamese leader Nguyen Phu Trong. AFP

Vietnam was the only country to receive state visits from the two men last year. What makes it all the more remarkable is the fact that it was at war with both the US and China within living memory (US troops withdrew from Vietnam in 1973, while the brief Sino-Vietnam war was in 1979). Then last month, Russian President Vladimir Putin was received warmly in the Vietnamese capital, praising “constructive” talks and signing 11 memorandums of co-operation, including over oil and gas exploration in the South China Sea.

To have such good relations with the US, China and Russia is no mean feat, and it does not come about by chance. This is Mr Trong’s legacy that deserves such praise: his concept of “bamboo diplomacy”. This is a foreign policy comparable to the "strong roots, stout trunk, and flexible branches" of the bamboo plant, as he put it in 2021, and which has led the world’s greatest powers to court the country, while allowing Vietnam to upgrade its connections with all its suitors.

Not all the credit can go to Mr Trong, who was General Secretary of the Communist Party of Vietnam from 2011 to his death last week. Ties with Russia go back a long way. The Soviet Union was one of the first countries to recognise Communist-led North Vietnam in 1950, when the French were trying to retake what had been one of their colonies, and Russia today is still the chief supplier of weaponry to the country.

To have such good relations with the US, China and Russia is no mean feat, and it does not come about by chance

But the paths to friendship with China and the US were not certain. Vietnam and the US normalised diplomatic relations in 1995, and two years later Hanoi agreed to settle a historical debt that allowed trade to resume between the two countries. The US is now Vietnam’s biggest export market and it is America’s tenth largest trading partner. But it is still a Communist state with a different view on all kinds of freedoms, compared to the US. Mr Trong’s 2015 visit – the first ever by a Vietnamese Communist Party General Secretary to the United States – surely had an effect on consolidating what then US president Barack Obama called a “constructive relationship that is based on mutual respect and that has benefited the people of both countries”.

Given they share a border, it is no surprise that Vietnam and China have a very deep history, which over hundreds of years included wars and Chinese occupation. More recently, the two countries differed violently over the Khmer Rouge regime in Cambodia in the 1970s, and territorial disputes in the South China Sea caused a wave of anti-China protests in Vietnam in 2014.

But as a recent analysis in The Diplomat put it, Mr Trong’s signature foreign policy has had the “ability to turn a zero-sum game among the great powers into a positive-sum game for Vietnam … From the Chinese perspective, Trong’s bamboo diplomacy is an assurance that Hanoi will not ally with an extra-regional power at China’s expense so long as China exercises restraint towards Vietnam”. Another researcher wasn’t quite so positive: “Vietnam remains somewhere between a frontline state in the Indo-Pacific for the US and a well-behaved comrade for China.”

Motorists in traffic in Hanoi on March 21, 2023. Vietnam's economy has been regarded as an emerging market standout for years, if not decades, and it is well placed as a low-cost manufacturing base with a very competitive workforce. Bloomberg
Motorists in traffic in Hanoi on March 21, 2023. Vietnam's economy has been regarded as an emerging market standout for years, if not decades, and it is well placed as a low-cost manufacturing base with a very competitive workforce. Bloomberg

Yet however one puts it, Vietnam is in a position many countries would envy. China almost certainly sees reassurance in the fact that the two countries’ political systems resemble each other more than they do any others in the world. In the long run, I believe American and other investors will also approve of the austere Mr Trong’s “blazing furnace” anti-corruption drive that led to the dismissal of two top leaders in the last few months. Its economy has been regarded as an emerging market standout for years, if not decades, and it is well placed as a low-cost manufacturing base with a very competitive workforce.

There are other countries in the region that maintain good relations with China and the US – indeed, most of them are anxious to do so. What makes Vietnam exceptional is that it has had such a troubled history with both, and yet, going by last year’s state visits, it also now has the very best friendship with both, and not just in South-East Asia.

The country’s leaders don’t tend to make a big mark on the global stage, nor are they generally big “characters”, as some in the region have been. But the results of Mr Trong’s “bamboo diplomacy” must be the envy of every foreign ministry in the Asia Pacific. He deserves to be honoured and remembered for his astonishing success in forging a future many others would like to emulate.

ESSENTIALS

The flights 
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Ship name: MSC Bellissima

Ship class: Meraviglia Class

Delivery date: February 27, 2019

Gross tonnage: 171,598 GT

Passenger capacity: 5,686

Crew members: 1,536

Number of cabins: 2,217

Length: 315.3 metres

Maximum speed: 22.7 knots (42kph)

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Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

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September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

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4.35pm: Tilal Al Khalediah
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8.50pm: Calandogan
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Always use only regulated platforms

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Courtesy: Crystal Intelligence

Scores

Scotland 54-17 Fiji
England 15-16 New Zealand

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UAE tour of Zimbabwe

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Friday, Sept 26 – UAE won by 36 runs
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Tuesday, Sept 30 – Third ODI
Thursday, Oct 2 – Fourth ODI
Sunday, Oct 5 – First T20I
Monday, Oct 6 – Second T20I

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Italy 3-66 New Zealand
Scotland 14-9 Argentina
England 37-18 Australia

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Starring: Daniella Weiss, Ari Abramowitz

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The BIO:

He became the first Emirati to climb Mount Everest in 2011, from the south section in Nepal

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By 2015, he had completed the Explorers Grand Slam

Last year, he conquered K2, the world’s second-highest mountain located on the Pakistan-Chinese border

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Afghanistan Premier League - at a glance

Venue: Sharjah Cricket Stadium

Fixtures:

Tue, Oct 16, 8pm: Kandahar Knights v Kabul Zwanan; Wed, Oct 17, 4pm: Balkh Legends v Nangarhar Leopards; 8pm: Kandahar Knights v Paktia Panthers; Thu, Oct 18, 4pm: Balkh Legends v Kandahar Knights; 8pm: Kabul Zwanan v Paktia Panthers; Fri, Oct 19, 8pm: First semi-final; Sat, Oct 20, 8pm: Second semi-final; Sun, Oct 21, 8pm: final

Table:

1. Balkh Legends 6 5 1 10

2. Paktia Panthers 6 4 2 8

3. Kabul Zwanan 6 3 3 6

4. Nagarhar Leopards 7 2 5 4

5. Kandahar Knights 5 1 4 2

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  • Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
  • Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
  • Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
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Saturday results
Qatar beat Kuwait by 26 runs
Bahrain beat Maldives by six wickets
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Monday fixtures
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Saudi Arabia v Kuwait
Bahrain v UAE

* The top three teams progress to the Asia Qualifier

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UAE currency: the story behind the money in your pockets
The five pillars of Islam

1. Fasting 

2. Prayer 

3. Hajj 

4. Shahada 

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

The specs

Engine: Four electric motors, one at each wheel

Power: 579hp

Torque: 859Nm

Transmission: Single-speed automatic

Price: From Dh825,900

On sale: Now

UAE currency: the story behind the money in your pockets
'My Son'

Director: Christian Carion

Starring: James McAvoy, Claire Foy, Tom Cullen, Gary Lewis

Rating: 2/5

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
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Updated: July 29, 2024, 6:21 PM