The Vietnamese government recently approved a plan to let a Chinese company build a bauxite mine in the country.
The move triggered rare public outcry from scientists, intellectuals and even war heroes who say the environmental and social damage will far outweigh any economic benefits. But analysts say while environmental concerns might be legitimate, fears for national security or even a so called "Chinese invasion" are totally unfounded.
LILY YAN: The Vietnamese Government estimates the country's bauxite reserves at 5.5 million tonnes, one of the largest in the world. It is a major drawcard for attracting foreign investment for Vietnam. However the majority of the bauxite reserve concentrates in the Central Highlands, an area regarded by some as a strategic region for the country. Duong Trung Quoc, a historian and a member of Vietnam's National Assembly, said it's careless to let a Chinese company into the region where national security is at stake.
DUONG TRUNG QUOC: I want to raise this question to see if it could be answered as I can't answer it. This is a sensitive issue. I wonder if we've studied carefully the history of the Central Highlands, the history of protection of the sovereignty of the country and the land. If you let the foreigners in, that can cause serious problems.
LILY YAN: Vietnam's Deputy Prime Minister, Hoang Trung Hai, has said the $10 billion mining project will help social and economic development in the Central Highlands but critics say the financial benefits brought by the mines will be very limited. Nguyen Ngoc is a well-known writer and outspoken activist for the Central Highlands and its people. He's concerned about what he saw during his recent trip to the area.
NGUYEN NGOC: In the Central Highlands there are two projects being carried out hastily. Machines could be seen everywhere. I saw many Chinese workers. There were about 300 Chinese workers, nearly 200 Vietnamese workers and some foreigners. I wonder why they bring into Vietnam so many simple unskilled foreigners while lots of Vietnamese workers are still unemployed?
LILY YAN: Even the General Vo Nguyen Giap who led Vietnam's defeat of French colonial forces, joined critics. The 97-year-old war hero has reportedly said in an open letter to the government that the contract granted to the Chinese company, a subsidiary of Chinese mining giant Chinalco, will cause danger to the lives of ethnic minorities and to Vietnam's security and defence. International experts say Hanoi has been calling for increased foreign investments and needs to trade with its big neighbour to survive. Professor Carl Thayer from the Australian Defence Force Academy say the Vietnamese have to be more open-minded towards the foreigners who work in the country.
CARL THAYER: Vietnam has to be careful what it wishes for. You can't have Chinese investment without Chinese managers and technicians accompanying that in joint ventures.
LILY YAN: As for concerns of national security, Professor Thayer dismisses them as absurd.
CARL THAYER: To pick on specific bauxite and over exaggerate the Chinese influences can only be done, in my view, for political concerns. This is not a real strategic issue. It's a made-up issue.
LILY YAN: At the same time, when the Chinese company was granted the contract, the US mining giant Alcoa has also been permitted to explore the feasibility of fielding another bauxite mine in the Central Highlands. The possible investment from the US has not caused much controversy. Professor Thayer says compared to Alcoa, the Chinese company has a poor history of quality and safety standard.
CARL THAYER: Alcoa brings world-class technology which is very expensive for cleaning up after the strip mining of bauxite and that Chinese companies have closed down mines in Guangxi Province because of environmental reasons and they're worried that lower level technology or lack of concern for Vietnamese laws could lead to pollution.
LILY YAN: Vietnam is not the only country feeling uneasy about China's thirst for resources. Last month the Australian Government rejected a $1.8 billion bid by Chinese mining company Minmetals to acquire OZ Minerals based on national security concerns. And the recent poll shows the majority of the Australians are hostile towards Chinese mining company Chinalco's bid for increasing its share in the Anglo-Australian company Rio Tinto. But Professor Thayer says people should look at the big picture and realise China's growth will be beneficial to the region.
CARL THAYER: And so each country should invite its foreign investment set its laws, re-look at it, be comfortable with it but then we should not discriminate because of the ethnicity - Chinese.
Presenter: Lily Yan - Speakers: Duong Trung Quoc, a historian and a member of Vietnam's National Assembly; Nguyen Ngoc writer and activist; Professor Carl Thayer from the Australian Defence Force Acadamy
The move triggered rare public outcry from scientists, intellectuals and even war heroes who say the environmental and social damage will far outweigh any economic benefits. But analysts say while environmental concerns might be legitimate, fears for national security or even a so called "Chinese invasion" are totally unfounded.
LILY YAN: The Vietnamese Government estimates the country's bauxite reserves at 5.5 million tonnes, one of the largest in the world. It is a major drawcard for attracting foreign investment for Vietnam. However the majority of the bauxite reserve concentrates in the Central Highlands, an area regarded by some as a strategic region for the country. Duong Trung Quoc, a historian and a member of Vietnam's National Assembly, said it's careless to let a Chinese company into the region where national security is at stake.
DUONG TRUNG QUOC: I want to raise this question to see if it could be answered as I can't answer it. This is a sensitive issue. I wonder if we've studied carefully the history of the Central Highlands, the history of protection of the sovereignty of the country and the land. If you let the foreigners in, that can cause serious problems.
LILY YAN: Vietnam's Deputy Prime Minister, Hoang Trung Hai, has said the $10 billion mining project will help social and economic development in the Central Highlands but critics say the financial benefits brought by the mines will be very limited. Nguyen Ngoc is a well-known writer and outspoken activist for the Central Highlands and its people. He's concerned about what he saw during his recent trip to the area.
NGUYEN NGOC: In the Central Highlands there are two projects being carried out hastily. Machines could be seen everywhere. I saw many Chinese workers. There were about 300 Chinese workers, nearly 200 Vietnamese workers and some foreigners. I wonder why they bring into Vietnam so many simple unskilled foreigners while lots of Vietnamese workers are still unemployed?
LILY YAN: Even the General Vo Nguyen Giap who led Vietnam's defeat of French colonial forces, joined critics. The 97-year-old war hero has reportedly said in an open letter to the government that the contract granted to the Chinese company, a subsidiary of Chinese mining giant Chinalco, will cause danger to the lives of ethnic minorities and to Vietnam's security and defence. International experts say Hanoi has been calling for increased foreign investments and needs to trade with its big neighbour to survive. Professor Carl Thayer from the Australian Defence Force Academy say the Vietnamese have to be more open-minded towards the foreigners who work in the country.
CARL THAYER: Vietnam has to be careful what it wishes for. You can't have Chinese investment without Chinese managers and technicians accompanying that in joint ventures.
LILY YAN: As for concerns of national security, Professor Thayer dismisses them as absurd.
CARL THAYER: To pick on specific bauxite and over exaggerate the Chinese influences can only be done, in my view, for political concerns. This is not a real strategic issue. It's a made-up issue.
LILY YAN: At the same time, when the Chinese company was granted the contract, the US mining giant Alcoa has also been permitted to explore the feasibility of fielding another bauxite mine in the Central Highlands. The possible investment from the US has not caused much controversy. Professor Thayer says compared to Alcoa, the Chinese company has a poor history of quality and safety standard.
CARL THAYER: Alcoa brings world-class technology which is very expensive for cleaning up after the strip mining of bauxite and that Chinese companies have closed down mines in Guangxi Province because of environmental reasons and they're worried that lower level technology or lack of concern for Vietnamese laws could lead to pollution.
LILY YAN: Vietnam is not the only country feeling uneasy about China's thirst for resources. Last month the Australian Government rejected a $1.8 billion bid by Chinese mining company Minmetals to acquire OZ Minerals based on national security concerns. And the recent poll shows the majority of the Australians are hostile towards Chinese mining company Chinalco's bid for increasing its share in the Anglo-Australian company Rio Tinto. But Professor Thayer says people should look at the big picture and realise China's growth will be beneficial to the region.
CARL THAYER: And so each country should invite its foreign investment set its laws, re-look at it, be comfortable with it but then we should not discriminate because of the ethnicity - Chinese.
Presenter: Lily Yan - Speakers: Duong Trung Quoc, a historian and a member of Vietnam's National Assembly; Nguyen Ngoc writer and activist; Professor Carl Thayer from the Australian Defence Force Acadamy