* Vietnam PM deeply concerned with 'complicated
developments'
* Chinese, Vietnamese ships locked in standoff since early
July
* At least two Vietnamese navy ships shadowing Chinese
vessels
* Australian PM says international law must be upheld
(Adds Chinese Foreign Ministry comments)
By James Pearson and Khanh Vu
HANOI, Aug 23 (Reuters) - New allies Vietnam and Australia
expressed concern on Friday about China's activities in the
South China Sea, where Vietnamese and Chinese vessels are locked
in a tense standoff in Vietnamese-controlled waters.
Vietnamese Prime Minister Nguyen Xuan Phuc discussed the
rising tensions with his Australian counterpart, Scott Morrison,
during the first visit by an Australian prime minister to Hanoi
since the countries formalised their "strategic partnership"
earlier this year.
"We are deeply concerned about the recent complicated
developments in the East Sea and agree to cooperate in
maintaining peace, stability, security, safety and freedom of
navigation and overflight," said Phuc alongside Morrison at a
joint press conference, using the Vietnamese name for the South
China Sea.
The comments were Phuc's first on the standoff.
A Chinese vessel, the Haiyang Dizhi 8, continued to survey
Vietnam's exclusive economic zone (EEZ) on Friday under escort
from at least seven Chinese vessels, according to data from
Marine Traffic, a website that tracks vessel movements.
At least two Vietnamese navy ships, including the
Russian-built Quang Trung frigate, have been closely shadowing
the Chinese vessels, according to the data.
The United States said on Thursday it was deeply concerned
about China's interference in oil and gas activities in waters
claimed by Vietnam, and that the deployment of the vessels was
"an escalation by Beijing in its efforts to intimidate other
claimants out of developing resources in the South China Sea".
Speaking in Beijing, Chinese Foreign Ministry spokesman Geng
Shuang said the United States was "sowing division and had
ulterior motives".
"The aim is to bring chaos to the situation in the South
China Sea and damage regional peace and stability. China is
resolutely opposed to this," Geng told a daily news briefing.
Australian Prime Minister Morrison said the principles of
international law should be upheld in the region.
"Principles like freedom of navigation, freedom of
overflight, to ensure nations can pursue the development
opportunities which exist within their EEZ and sea boundaries,
and can go about that business in a way which is uninhibited,"
said Morrison, who began a three-day visit to Hanoi on Thursday.
In May, two Australian warships docked at Vietnam's
strategic naval base at Cam Ranh Bay as the two navies stepped
up cooperation.
Australia on Wednesday announced it would join the United
States in a security mission to protect merchant vessels
travelling through key Middle East waterways after Iran seized a
British-flagged vessel. AND COMRADES
Morrison was in Hanoi on the first official visit by an
Australian prime minister since the two countries upgraded their
relationship to a "strategic partnership" in March last year.
Bilateral trade rose 19.4% in 2018 to $7.72 billion,
according to Vietnamese government customs data.
Australia is the largest foreign coal supplier to Vietnam,
which is increasingly reliant on the fossil fuel for power
generation to meet its fast-growing economy.
Coal shipments from Australia to Vietnam more than tripled
in the January-July period from a year earlier to 8.51 million
tonnes, according to customs data.
"Australia and Vietnam are friends and, today, to use
Australian parlance, we've gone from friends to mates," Morrison
said.