|Vietnamese activists in Hanoi|
China conducted a massive cross-frontier invasion, ostensibly to punish Vietnam for its invasion and occupation of Khmer-Rouge led Cambodia. There were heavy casualties on both sides in the short border war, which saw China capture a number of towns. When Chinese troops withdrew, they conducted a scorched earth policy against territory that they had occupied.
|Chinese invasion of Vietnam|
If anti-Chinese sentiment in Vietnam becomes more virulent, or a major armed confrontation in the South China Sea occurs, Vietnam could lose some or all of its lucrative international trade with China, and this would adversely affect your Country Risk assessment for Vietnam. Remember that China withheld Rare Earth elements from Japan, when there was a diplomatic row between them a while back. China could inflict some major damage upon the Vietnamese economy.