Vietnam plans live-fire drill after China dispute

A squabble over territory in the South China Sea escalated Friday when Vietnam announced a live ammunition drill in an apparent response to China's demand that the Vietnamese halt all oil exploration in the area.

The heated verbal clash between the two communist neighbors comes amid a similar spat between China and Philippines earlier in the week over another disputed area of the South China Sea, where several countries are eyeing potentially rich oil and gas reserves.

Vietnam said Friday its Navy would carry out two exercises totaling nine hours Monday in an area off the country's central Quang Nam province. The announcement posted on the state-owned Northern Maritime Safety Corp.'s website warned boats and ships to stay out of the area. It was the first time Vietnam has issued such an alert about conducting maritime drills.

It came a day after China and Vietnam traded diplomatic punches, with each demanding that the other stay out of waters they claim. The two countries have a long history of maritime scraps in disputed parts of the South China Sea near the Spratly and Paracel islands, but the recent row has sparked an unusually hostile response from Hanoi.

http://www.businessweek.com/ap/financialnews/D9NP4C1G0.htm

Looks like Vietnam is this year's punching bag for China, like Japan last year