Although China is Vietnam's largest trading partner, the two countries have engaged in sovereignty disputes over archipelagos in the South China Sea, especially the Paracel and Spratly Islands. These disputes threatening regional security and impinging on the interests of the populations around the South China Sea have attracted international attention. Vietnam controls most of the Spratly Islands, whereas the Paracels are mainly occupied by China. The manner in which Vietnam handles the situation in the South China Sea may have a significant impact on both the living conditions of the Vietnamese and their country's regional role. Vietnam's strategies towards rising China are shaped by its history, economy and geographical proximity to China. This article focuses on the genesis and development of these territorial disputes, the employment of hedging strategies towards China by the Vietnamese government, and the involvement of foreign forces. The future outlook on the disputes is provided at the end of the article.