Malaysia-Vietnam Joint Development Agreement

Abstract

1. Debate on joint development (JD) was triggered by the increasing of oil and gas exploitation activities since the 1960s in the marine areas where boundaries pass through or where claims overlap. The joint development zones (JDZs) concept also has increasingly been recognized by the international community as a peaceful and pragmatic alternative to resolve the economic and emotional battles of competing sovereign claims, to the extent that JDZs show potential in forming norms of practice and may shape future commercial conduct, hence they could become part of international economic law.1 2. Many disputes remain dormant and unresolved, primarily because there is no immediate economic incentive for countries to pursue remedies. Others have been resolved via Joint Development Agreements (JDAs), creating Joint Development Zones (JDZs) in which the competing countries hold shared interests. One significant example of territorial dispute resolved through JDA is the treaty between Malaysia and Vietnam with respect to the Malay Basin in the southern part of the Gulf of Thailand. Malaysia and Vietnam have been using a practical approach in settling territorial disputes through joint development. Both States adopted strong diplomatic understanding to address the disputes peacefully.