HANOI - TENSION is growing between China and Vietnam over control of the Spratly Islands after another violent clash in the oil-rich offshore region.
A group of Vietnamese boats fishing in waters near the Spratlys, 350km east of Ho Chi Minh City, came under fire from Chinese naval vessels on July 9.

Military sources reported that one of the Vietnamese boats sank after the attack. One fisherman was killed and several others hurt.

Said Professor Carlyle Thayer, a Vietnam expert at the Australian Defence Force Academy: 'Vietnamese naval officers say that Chinese vessels have been adopting an intimidating posture for some time now.'

Indeed, Vietnamese officials say that there have been minor confrontations whenever one of their boats has encountered a Chinese counterpart in the disputed areas.

Said Prof Thayer: 'These Chinese actions are part of a general posture of staking out territorial claims and curtailing encroachments by Vietnamese fishermen.'

In early April, Vietnam's coast guard reported that Chinese naval vessels had captured four Vietnamese fishing boats for operating in waters near the Spratlys.

The Chinese detained 41 fishermen and released them only after fines were paid.

Colonel Le Phuc Nguyen, deputy editor-in-chief of The People's Army newspaper, told The Straits Times: 'It is difficult for fishermen to know the exact border lines. But we should not use weapons at sea because it only leads to more serious problems.'

The Spratlys are claimed by China, which calls them Nansha, and by Vietnam, which calls them Truong Sa.

Brunei, Malaysia and the Philippines also have claims to some of the islands.

In the incident on July 9, military sources say two of Vietnam's Russian-designed BPS-500 fast-attack craft raced to the scene but kept their distance due to the superior firepower of the Chinese ships.

Said Col Nguyen: 'In the long term, we have to strengthen our navy and upgrade our coast guard.'

Apart from the sovereignty issue, it is the resources beneath the surface that are the key to the latest skirmishes.

Both countries have booming economies and equally booming energy needs.

With crude oil forecast to hit US$100 (S$152) a barrel before the year's end, Vietnam wants to exploit its proven reserves of more than 600 million barrels.

The problem is that much of it lies under the sea in offshore areas claimed by China.

Already, the potential for serious conflict has caused some oil companies to pull out.

Last month, British Petroleum and its partners US oil giant ConocoPhillips and state-owned Petrovietnam halted a US$2 billion project to develop a gas field off southern Vietnam.

Said Prof Thayer: 'The long-term strategic trends point to the potential for more heightened tensions over oil in the South China Sea.'

Others remain hopeful of a compromise.

Said Mr David Koh, a Vietnam expert at Singapore's Institute of Southeast Asian Studies: 'Regarding their conflicting claims, both sides probably now realise that sovereignty feeds no mouths and saves no souls.'