Abandoning any plans to contain China directly, these governments, while realizing that Vietnamese patrol boats are no match for Chinese submarines, understand that by the time the buffer is exhausted, a given incident will have escalated to an international crises. Indications of this intent has become increasingly clear. Companies from these nations have been actively encouraged by their governments to invest in Vietnam, even when the possibility for profit is highly questionable. Consider the fact that hundreds of Western companies with armies of analysts continue to sit on the sidelines despite the fanfare immediately surrounding the lifting of the U.S. embargo. The investment environment in Vietnam, to this day, is far inferior to that in China, the Philippines, or Thailand.
Labor is cheap in Vietnam, but so is it in the rest of southeast Asia.
Land rents in Vietnam, meanwhile, are at the top of the region's price list. The lack of laws, law-enforcement, and predictability of government behaviors just compound the absence of a physical infrastructure. Therefore, by any standard, economic profits do not seem to be the sole reason behind some firms operating here. Some observers believe the tactful and low-keyed approach is to not upset Beijing, with whom, the Pacific Rim countries maintain important trading relationships. Hanoi, unsurprisingly, has jumped at the opportunity.