(1st UPDATE) The two memoranda of understanding on security covered incident prevention in the South China Sea and maritime cooperation among Vietnamese and Philippine coastguards, according to a Vietnamese official announcing the deals

HANOI – Vietnam and the Philippines agreed on Jan 30 to boost cooperation among their coast guards and to prevent untoward incidents in the South China Sea, in an announcement during a state visit by President Ferdinand Marcos Jr.

The two South-east Asian countries have competing claims over some parts of the South China Sea, a conduit for US$3 trillion (S$4.02 trillion) of annual ship-borne trade that China claims almost in its entirety.

The two memorandums of understanding on security covered “incident prevention in the South China Sea” and “maritime cooperation” among coast guards, according to a Vietnamese official who announced the deals during a formal ceremony in the countrys presidential palace.

The agreement in Hanoi, details of which were not disclosed, could risk angering Beijing, especially if they pave the way for future compromises on disputed claims.

China tends to view progress in the resolution of border disputes among other claimants with scepticism.

Both Hanoi and Manila have had run-ins with Chinas coast guard in the past, but altercations were frequent in 2023 between vessels of China and US ally the Philippines, adding strain to deteriorating relations.

Before meeting Vietnams President Vo Van Thuong, Mr Marcos said Vietnam was “the sole strategic partner of the Philippines” in South-east Asia and stressed that maritime cooperation was the foundation of that relation.

“The world and regional situation is evolving in a rapid and complicated manner, and therefore we need to unite and cooperate more closely,” Vietnamese Prime Minister Pham Minh Chinh said, noting that Mr Marcos visit helped boost bilateral relations.

Vietnam, one of the worlds biggest rice exporters, will also have an agreement with the Philippines, a top importer of the grain, covering rice trade and agriculture cooperation.

In his two-day visit to Hanoi, Mr Marcos is meeting Vietnamese leaders, but not Communist Party chief Nguyen Phu Trong, according to official schedules, in what would be Mr Trongs third consecutive absence from meetings with visiting leaders in January.

However, Mr Trong, 79, attended a Parliament session in mid-January, partly dispelling concerns about his health after he was not included in official schedules of visiting leaders from Laos and Indonesia.

Before meeting Vietnamese political leaders on Jan 30, Mr Marcos met Mr Pham Nhat Vuong, the head of Vingroup, Vietnams largest conglomerate, on Jan 29.

The company said on Jan 30 that its electric car unit VinFast will open a business network in the Philippines.

Mr Marcos said the Philippines could help in the production of batteries for electric vehicles, thanks to its reserves of cobalt, copper and nickel, according to Vingroups statement.