In a medium bowl, combine the chicken with the fish sauce, soy sauce, water, and sugar.
In a large nonstick frying pan or a wok, heat the oil over moderately high heat.
Add the onion and cook, stirring, for 2 minutes.
Stir in the chiles and garlic; cook, stirring, 30 seconds longer.
Remove the chicken from the marinade with a slotted spoon and add it to the hot pan. Cook until almost done, stirring, about 3 minutes.
Add the marinade and cook 30 seconds longer.
Remove from the heat and stir in 1 cup of the basil.
Serve topped with the remaining 1/2 cup basil.