The Malaysian Maritime Enforcement Agency (MMEA) publicly announced on 5 April 2021 that a Memorandum of Understanding (MoU) with Vietnam is being finalised and is expected to be signed later this year. The MoU would ease the bilateral maritime tension between Malaysia and Vietnam over disputed waters in the South China Sea by encouraging cooperation in enforcement and search and rescue operations. 

Economically, this is a good opportunity for both nations, especially for their fishing industry. The MoU would allow both countries to cooperate to tackle illegal, unreported, and unregulated (IUU) fishing through information sharing and inter-agency operations. For instance, Malaysia estimates their losses to illegal fishing to up to US$1.4 billion annually, attributing part of the problem to Vietnamese fishers. Meanwhile, Vietnam is keen to improve its track record on combating IUU fishing as it faces pressure to prevent a red card from the European Commission, which would effectively cease Vietnamese seafood exports to the EU. 

Geopolitically, reducing bilateral disputes between ASEAN states, such as Malaysia and Vietnam, is a step towards unifying ASEAN countries against an increasingly aggressive China in the South China Sea. However, ASEAN nations' ability to unite is still dependent on the eventual outcome of the MoU and whether bilateral tensions with other stakeholders such as Indonesia and the Philippines can be resolved. Additionally, it is unclear if a unified stance against China would serve to abate or exacerbate China's encroachment. The history of the geopolitical tussle in the South China Sea is still largely in the making.