If the picture of Vietnam-China exports in 2023 had some "dark spots" at the beginning of the year with growth rates that were not as expected, the pieces of the puzzle in the following months were brighter and clearer. With Vietnam's export growth to China in the first 10 months of 2023 increasing by 5.13%, higher than the 3.18% increase of the previous year, it showed that the synchronous solutions of the Government, ministries and especially the Ministry of Industry and Trade in their efforts to expand the introduction of Vietnamese goods into the Chinese market have been effective, creating a solid foundation for the following years.
A series of trade promotion solutions
Information from the Department of Asia-Africa Markets - Ministry of Industry and Trade said that according to statistics from Vietnam Customs, Vietnam - China import and export turnover in 2022 reached 175.56 billion USD, an increase of 5.47% compared to 2021 and accounting for 24% of Vietnam's total import and export.
Of which, exports to China reached 57.7 billion USD, up 3.18%; imports from China reached 117.8 billion USD, up 6.63%; trade deficit was 60.1 billion USD, up 10.18%. China continues to be Vietnam's largest trading partner, largest import market and second largest export market, after the US.
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| In 2023, our country's exports to China reversed from a 2.2% decrease at the beginning of the year to a 6.2% increase after 11 months. |
In 2023, import and export turnover to China will improve, especially from the second quarter onwards. In the first 10 months of 2023, Vietnam's import and export turnover with China reached 138.9 billion USD. Of which, exports to China reached 49.5 billion USD (accounting for 17% of Vietnam's export value), up 5.13%; imports from China reached 89.3 billion USD (accounting for 33.4% of Vietnam's import value).
With a population of 1.411 billion people, China is an important export market for Vietnam, especially for agricultural, forestry and fishery products. For example, with vegetables and fruits, exports to China account for 53.7% of the total export volume; lychee exports account for 90%; dragon fruit exports account for more than 80%... With cassava, this market also accounts for 91.47% of the export volume; with rubber, it is 71% and China is currently the third largest market for Vietnam's seafood exports.
The advantages of the Chinese market in terms of market size, consumption trends, and geographical location for Vietnamese exports are clear, but taking advantage of those advantages is not simple. The business habits of many enterprises and farmers over the years have been to "sell whatever is available", preferring informal export methods, working through traders, etc., so there is no initiative and long-term strategy, and it is easy to be confused by new regulations of the importing country. Therefore, China, a nearby market, sometimes becomes "far away". There are times when export goods that do not meet import requirements have to wait at the border gate because the other side has amended the Food Safety Law and regulations on importing goods; Import procedures are also more strictly regulated in terms of origin, labels, etc.
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The trade promotion conference with the Vietnamese Trade Offices abroad in April 2023 with the theme "Prospects for exporting Vietnamese goods to the Chinese market in the new context" suggested many solutions and provided a lot of market information for export enterprises. |
The Ministry of Industry and Trade, with its management role in the trade sector, in 2023 has thoroughly implemented many solutions, accompanying businesses, industry associations and farmers in removing difficulties and boosting exports to the Chinese market.
In the 12 trade meetings of 2023, the solution to bring goods to the Chinese market was carried out in a separate session in April 2023 with the theme "Prospects for exporting Vietnamese goods to the Chinese market in the new context". This is the timely intervention of the Ministry of Industry and Trade right after realizing that the export trend in the first months of the year to the Chinese market tended to be less positive, when in the first quarter of 2023, Vietnam's export turnover to China reached 11.9 billion USD, down 11.3% compared to the same period in 2022.
| At the April 2023 trade conference, Minister of Industry and Trade Nguyen Hong Dien pointed out: China is no longer an easy market as before, not all goods are accepted by the Chinese market. Competing for export goods to traditional markets of Vietnam will not be easy. On the other hand, raw materials serving our country's export manufacturing industries still depend on the Chinese market. Therefore, we need to correctly, accurately, promptly identify and assess both the opportunities and challenges of the current Chinese market in order to exploit and promote the advantages in economic and trade cooperation. |
At this conference, export opportunities, difficulties and solutions to promote import and export with the Chinese market were identified. And in many subsequent trade meetings, positive signals or changes in regulations of this market; difficulties of enterprises and specific industries when exporting to China... continued to be answered by the Trade Office and functional departments of the Ministry of Industry and Trade; recommendations were collected to coordinate with relevant ministries and branches to report to the Government in order to have appropriate and timely policy advice.
Along with that, the Ministry of Industry and Trade has also focused on promoting direct trade promotion activities in the Chinese market through participation in exhibitions and fairs. At the ASEAN - China Expo (CAEXPO) held in September 2023, the Vietnamese trade pavilion was the largest among ASEAN countries with the participation of 120 enterprises and more than 200 booths. According to the Trade Promotion Agency, about 100 Vietnamese enterprises participated in trade programs and seminars at the fair, with the total value of trade transactions and signing of contracts and investment and business cooperation agreements at the fair reaching an average of nearly 100 million USD. In addition, Vietnamese enterprises have the opportunity to work and trade with about 50,000 Chinese traders, large enterprises from ASEAN countries and internationally.
| Mr. Vu Ba Phu, Director of the Department of Trade Promotion: In all trade promotion and export activities, the Ministry of Industry and Trade always emphasizes and seeks to support businesses to maximize their conversion to official exports to the Chinese market. |
Most recently, in November 2023, the Ministry of Industry and Trade and the Embassy of Vietnam in China coordinated with the China Council for the Promotion of International Trade (CCPIT) to organize the "Vietnam-China Trade and Trade Promotion Conference". Immediately after the conference, Vietnamese enterprises carried out direct B2B trade connection activities with Chinese enterprises, with an estimated more than 150 transactions taking place. Along with this activity, the Trade Promotion Department has been proactively coordinating with the Embassy, the Vietnamese Trade Office in China, and the Chinese CCPIT at the central and local levels to organize many Vietnamese business delegations to trade and work in localities and fairs in China to connect trade directly with Chinese enterprises, as well as welcome many local delegations and Chinese enterprises to work in Vietnam.
In addition, the Ministry of Industry and Trade has coordinated with border localities such as Lao Cai to organize international trade fairs to enhance trade exchanges between the two sides, boost import-export turnover growth through Lao Cai international border gate, help businesses learn about and penetrate the Yunnan market and create momentum for expansion to other localities in China.
Proactively remove difficulties for exporting goods through border gates
The unblocking of the Vietnam-China trade flow in 2023 also requires the Ministry of Industry and Trade to proactively and directly remove difficulties and facilitate the export of goods through border gates. In addition, the promotion of the shift of goods export through border gates in the form of official channels has also been implemented synchronously and actively.
| In 2023, the Ministry of Industry and Trade effectively managed and cleared export activities to China, with basic goods not being congested, even during peak seasons, contributing to increasing export turnover to the Chinese market. This is the only market among Vietnam's major export markets to achieve positive growth (our country's exports to China reversed from a decrease of 2.2% to an increase of 6.2% after 11 months) while other major markets all decreased. |
At the end of May and the beginning of June 2023, export goods through border gates in Lang Son province showed signs of congestion. The Ministry of Industry and Trade has coordinated with the Chinese side to deploy solutions to quickly relieve congestion. Specifically, Minister of Industry and Trade Nguyen Hong Dien sent a letter to the Director General of the General Administration of Customs of China, Yu Jianhua, to proactively urge the Chinese side to coordinate to facilitate customs clearance and avoid congestion of goods at the border gate. At the same time, the Ministry of Industry and Trade had a working session with the Commercial Counselor of the Chinese Embassy in Vietnam, requesting the Chinese side to coordinate to improve customs clearance efficiency at the border gate, establish a green lane with priority for customs clearance for fruits, and guide businesses of the two countries to diversify border gates for the delivery of import and export goods. In addition, the Ministry continues to maintain regular exchanges with the Chinese side (Embassy, customs), and directs the Vietnam Trade Office Branch in Nanning, Guangxi to promote the Chinese border gate authorities.
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Minister Nguyen Hong Dien discussed with Ambassador Hung Ba about industrial and trade cooperation, especially border trade cooperation between the two countries. |
In August 2023, participating in the working delegation led by General Secretary Nguyen Phu Trong working in Lang Son, visiting and working at Huu Nghi border gate, Minister of Industry and Trade Nguyen Hong Dien had a short exchange with the Chinese Ambassador to Vietnam - Hung Ba, one of the contents mentioned by the Minister was focusing on promoting border trade cooperation between the two countries.
Along with direct solutions to remove difficulties for exporting goods through border gates, the Ministry of Industry and Trade also directed relevant units to facilitate the issuance of C/O certificates for enterprises changing export border gates. At the same time, the Ministry issued Official Letter No. 409/XNK-TMQT to the Departments of Industry and Trade of provinces and cities and associations of enterprises exporting goods to the Chinese market, requesting them to proactively grasp information on customs clearance status so that export activities can achieve the highest efficiency.
Understanding the market for sustainable export
In At the Conference on Promoting Economic and Trade Cooperation in the Northern Border Provinces with China held last weekend, Minister of Industry and Trade Nguyen Hong Dien frankly pointed out the limitations in Vietnam-China border trade. That is, trade exchange is not commensurate with the potential, the capacity of border gate infrastructure has not been fully exploited; agricultural and aquatic product exports are still mainly small-scale, quantity, quality, and prices are unstable; border infrastructure is still limited; upgrading and opening new pairs of border gates has not kept up with trade demand; the application of new technology in managing border gate operations is only on a pilot basis, not yet widespread at border gates...
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The Conference on Promoting Economic and Trade Cooperation in the Northern Border Provinces with China in both direct and online forms was held by the Ministry of Industry and Trade on the morning of December 9, 2023. |
In 2023, Vietnam's exports to the Chinese market will continue to face a number of challenges in adjusting the country's policies: The Food Safety Law was amended twice, issuing Order 248 on "Regulations on Management of Registration of Imported Foreign Food Production Enterprises", and Order 249 on "Measures for Management of Import and Export Food Safety", creating pressure to "standardize" exported agricultural products. In addition, China also tightened the management of imported agricultural and aquatic products by only allowing imports at designated border gates, requiring registration of import enterprises...
From this reality, the Ministry of Industry and Trade has continuously given attention and given directions for exporting to China to businesses and industries. Mr. To Ngoc Son - Deputy Director of the Asia - Africa Market Department expressed: The viewpoint of exploiting the Chinese market must change, this is a market with high and strict standards, so businesses must reduce their dependence, and move towards stopping the form of "small-scale" export. It is necessary to quickly and strongly shift to the form of formal trade, update new market trends and trends and aim to produce high-quality products.
In order to export sustainably to the Chinese market, the Ministry of Industry and Trade has developed and is seeking opinions from agencies, organizations, people and businesses on the Decree amending and supplementing a number of articles of Decree No. 14/2018/ND-CP dated January 23, 2018 of the Government detailing border trade activities.
The roadmap for shifting from “informal” to “official” exports is specifically proposed: From January 1, 2025, Vietnamese exported goods must fully meet quality standards and traceability regulations as required by the importing country, including goods exchanged by border residents.
In addition, management agencies and local authorities in production organizations need to develop industry development strategies and build brands; Build concentrated, large-scale specialized production and farming areas; Orient production/farming according to market signals.
Regarding quality management, it is necessary to strengthen the management and supervision of export quality from farming to processing; Strengthen training and replicate production models according to GLOBAL GAP, VIETGAP, HACCP standards.
Regarding the issue of removing technical barriers, it is necessary to effectively utilize the cooperation mechanism between the two countries to remove technical barriers; develop a roadmap and plan to open the market for export goods, and carefully assess domestic production capacity and market demand.
For businesses, it is necessary to research and comply with regulations on quality standards, testing, quarantine, packaging, and traceability of the Chinese market; Focus on building and protecting brands; Take advantage of the Vietnam-China railway route.
Another issue that the Ministry of Industry and Trade mentioned is the enhancement of regional access. In addition to traditional markets such as Yunnan, Guangdong, and Guangxi, export enterprises need to pay attention to potential markets in the West, East, and Southwest of China.
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