Vietnam's economic liberalization since the adoption of the Doi Moi has helped Vietnam's economy blossom. As a result of its economic liberalization, Vietnam has become more dependent on China for its economic growth and stability. This dependency has made it difficult for Vietnam to challenge China when its sovereignty is threatened. According to the World Bank, China is Vietnam's number one trading partner, with $50 billion in trade commerce in 2013. By examining the importance of Vietnam's economic liberalization and its dependence on China, we can better understand how Vietnam will formulate its foreign policy with China and, in part, the United States. Vietnam has modernized its military to close the gap between its military capabilities and China's. Vietnam has also increased its engagements with the United States, South Korea, Japan, India, Russia, and Australia in an attempt to hedge against China's increased aggression in the South China Sea. Meanwhile, Vietnam has opened up its seaports to the international community and begun upgrading Cam Ranh Bay seaport to become a repair facility to provide maintenance support for most naval vessels. Vietnam is using these strategies to better defend its sovereignty without impacting its economic relationship with China. CHAPTER I - INTRODUCTION * A. IMPORTANCE * B. PROBLEMS AND HYPOTHESES * C. LITERATURE REVIEW * 1. Vietnam's Economic Relationship with and Dependency on China * 2. Vietnam's Response to China's Threat * D. METHODS AND SOURCES * E. THESIS OVERVIEW * CHAPTER II - VIETNAM'S ECONOMIC RELATIONSHIP WITH AND DEPENDENCY ON CHINA * A. POST-VIETNAM WAR * B. COLD WAR APEX * C. POST-COLD WAR * D. PRESENT * E. CONCLUSION * CHAPTER III - VIETNAM'S RESPONSE TO CHINA'S INCREASING THREAT * A. INTERNATIONAL RELATIONSHIP STRATEGY * 1. BALANCING * 2. BANDWAGONING * 3. HEDGING * 4. ENGAGING * B. CONCLUSION * CHAPTER IV - CONCLUSION