Vietnam Struggles With Nationalism

Anti-China demonstrations are testing the Vietnamese government's ability to manage rising nationalist sentiment. Since May 7, protesters have taken to the streets to oppose China's deployment of a deep-sea oil rig in the Paracel Islands, which Vietnam and China both claim as their own. The protests turned uncharacteristically violent, leaving several people dead and hundreds of foreign businesses aflame.

Hanoi might be tempted to draw from the wellspring of support this wave of nationalism could provide. Vietnam is beset by a variety of socio-economic problems, and the government will need all the political capital it can get as it tries to solve them. But ultimately, the costs of encouraging nationalism outweigh the benefits. Vietnam does not want to risk domestic political instability, nor does it want to discourage foreign investment. And just as important, it does not want to jeopardize its relationship with China, its largest trade partner and its long-time regional rival.