During the first decade, Thai-Vietnamese relations were rough and tough, facing lots of obstacles and uncertainties. For more than a year the diplomatic ties remained cool because of the domestic crisis inside Thailand due to the rise of an ultra-conservative and anti-communist elite, which eventually drove thousands of students underground. Then Vietnam occupied Cambodia at Christmastime in 1978, which pitted Thailand and the rest of Asean against the communist country for the next 13 years. During this period, both sides fought at forums around the world. The most interesting was at the UN General Assembly, where Asean representatives did an exemplary job in shoring up support for the anti-Vietnamese Cambodian resistance government. It was through such repeated endeavours that Asean became quite a well known organisation at the UN. Vietnam realised as early as 1989 that it would have to join Asean at some point or else it would find it difficult to develop economically. It needed to integrate with the regional economy. Former Prime Minister Chatichai Choonhavan's policy of turning the battlefield of Indochina into a marketplace also encouraged Vietnam to accelerate its economic development.

After the Vietnamese troops left Cambodian soil and peace returned to Thailand's eastern neighbour, Thai-Vietnamese relations improved rapidly. Diplomatic efforts to settle nagging bilateral issues intensified. Among these were the refugees living in Thailand since the battle of Dien Bien Phu and the demarcation of maritime territory. Thai trawlers were often caught slipping into Vietnamese waters to fish illegally, but joint cooperation on fishing later on has settled the disputes. Mutual confidence also increased due to Thailand's cooperation in stopping anti-government Vietnamese elements outside the country from using its territory for launching clandestine activities. Within just a few years, both sides moved quickly to agree on mutual visa exemption for citizens travelling between the two countries. Currently, several hundred thousand Vietnamese tourists come to Thailand every year for leisure and shopping. Thailand has become one of the most popular tourist destinations for the Vietnamese. And since its admission to Asean in 1995, Vietnam has become a leading member of the group. Both Thailand and Vietnam see eye to eye on the necessity of building up a strong Asean community on the pillars of common security, economic and social interests.

Moreover, Vietnam is also a member of the annual Asia-Europe Meeting, the Asia Pacific Economic Cooperation forum, the Asian Cooperation Dialogue and ACMECS, the Ayeyawady-Chao Phya-Mekong Economic Cooperation Strategy. Vietnam will soon join the World Trade Organisation, which will increase its economic competitive advantages even further. In coming years, Thailand and Vietnam should cooperate further in areas other than economy and security, such as literature, sport and art. Cultural ties between the two countries are still minimal and not commensurate with the burgeoning bilateral trade and economic cooperation. Both Thai and Vietnamese leaders still do not have the political will to promote this area of friendship. Promotion of each other's literature, including translations and the exchange of language teachers would strengthen people-to-people cooperation and understanding and raise awareness.

Strange as it may seem, fears have been expressed in certain quarters of Thailand that Vietnam will soon become the Kingdom's foremost business competitor, both as a destination for foreign investment and in trading. This in fact is good news, as it will encourage the Thai authorities concerned to improve their efficiency and skills. After all, a Vietnam that is economically developed is a huge potential market for Thai products and goods. It is a mutually beneficial relationship.