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Viet I don't think India will be afraid of China, it didn't back down when US was forcing India to cut Iran oil import. India has independent foreign policy but I think China can make India come to its terms by offering India more. Quid Pro Quo works for countries like India and China, threatening and warning don't work.
But looking at current Indian posture regarding Vietnam, I don't think India will change its relations with Vietnam if China proposes something worthy. Vietnam and SCS has its own importance and it can't be replaced. Oil and natural resources is what India needs for its energy hungry economy and Vietnam is a better bet. Its not only economic but strategically important ally of India which makes Vietnam a separate case.
See, Vietnam and other developing countries in ASEAN are a ripe market for India and its companies.
Their strategic location is need of India considering China's increasing naval presence in IOR and growing ties with Indian neighbors like Maldives. If they are in our backyard, we have to be in theirs.
So, its just not the economic benefits only but a long strategic benefit too. One way Vietnam can get more support from other countries is making favorable policies for India, which got huge support from various other countries especially countries who are in face off with China, like Japan and other SCS countries. More is presence of Indian investment in Vietnam, more India will be tilted towards Vietnam.
In International politics, there are no friends or foes. Just national interest.
And currently its in national interest of both countries, India and Vietnam, to have better ties.
