New impetus for Vietnam-China trade and investment cooperation

Vietnam-China economic, trade and investment cooperation maintains strong growth momentum and is increasingly deepening.

Since the establishment of diplomatic relations (January 18, 1950), Vietnam-China relations have always been consolidated and developed well, achieving many important results. In particular, since 2008, the two sides established a framework of comprehensive strategic cooperative partnership, which has created rapid and increasingly profound and comprehensive progress in all fields.

Since the beginning of 2024, the relationship between the two countries has maintained a positive development momentum, and the atmosphere of cooperation has spread strongly to all levels, sectors and people. Therefore, the visit to China by General Secretary and President To Lam and his wife will become a new milestone, opening a period of strong development in the relationship between the two countries.

Vietnam-China economic, trade and investment cooperation has maintained strong growth momentum and is increasingly deepening. (Source: VNA)

Largest trading partner, second export market

Over the years, Vietnam has continuously improved its position, becoming China's largest trading partner in ASEAN and the 5th largest trading partner globally. In contrast, China remains Vietnam's largest trading partner, largest import market and second largest export market.

According to the General Department of Customs, as of the first 7 months of 2024, the total bilateral trade turnover has reached 112.6 billion USD and there are many opportunities to surpass the figure of 171.9 billion USD in 2023. China's direct investment in Vietnam continues to increase rapidly, reaching more than 1.5 billion USD in the first 7 months of 2024.

Vietnam is a country with many unique agricultural products favored by Chinese consumers such as durian, coffee, etc. China is currently the second largest export market and a major consumer of agricultural products for Vietnamese farmers. Vietnam's main export items to China are still mobile phones, components, electronic equipment, rubber, agricultural products, seafood, etc. Meanwhile, China continues to be an important supplier of goods to Vietnam with products such as machinery, equipment, raw materials for the garment industry, leather shoes, iron and steel, construction materials, etc., and household appliances.

According to the General Department of Customs, the products that Chinese enterprises are interested in and have increased their imports in recent times are industrial processing and manufacturing products, agricultural and aquatic products. In particular, this billion-people market continues to increase imports of tropical agricultural products, including quality Vietnamese fruit products such as durian, watermelon, banana, etc.

It is known that up to now, there are 12 items of vegetables and fruits; bird's nest, fish meal and some products serving the production and processing of animal feed; dairy products and various types of seafood are officially exported to China, helping the export value to this market grow well.

According to the Ministry of Industry and Trade, Vietnam and China have many similarities that have facilitated positive trade relations. Moreover, the close geographical location is also a favorable factor in promoting cooperation and boosting exports between the two countries.

At the same time, it should be noted that China is reducing its dependence, moving towards stopping informal export and is rapidly and strongly shifting towards formal trade. Therefore, export enterprises need to update new market trends and tastes, aiming to produce high-quality products; increase regional access, and completely shift to formal export.

"Taking advantage of existing geographical location and policies to promote trade and facilitate trade, two-way import and export between Vietnam and China in the first half of the year recovered impressively. China continues to be Vietnam's second largest export market. In recent months, especially June and July, orders from China have improved significantly thanks to the recovery in demand for goods consumption, significantly affecting export figures with an impressive growth picture", the Import-Export Department (Ministry of Industry and Trade) assessed.

According to information from the Vietnam Trade Office in Beijing (China), the Chinese economy is showing very positive signs of recovery and the country has issued many policies on import and export management, in which if the goods meet the standards, favorable conditions will be created for import. In the context that Vietnam is trying to promote many strong products to the Chinese market, such "open" policies are a good and encouraging signal.

In particular, with the current high cost of shipping, many Chinese enterprises have been looking for import sources in neighboring regions, replacing European enterprises. Among them, Vietnam is the top choice.

Regarding the agricultural sector, currently, the authorities of both sides have been working hard to complete the procedures to sign a protocol on plant quarantine requirements for fresh coconuts and frozen durians from Vietnam exported to China.

According to economic experts, the trade space between the two countries is still large as in recent times, the two sides have had many bilateral cooperation agreements as well as multilateral agreements such as: ASEAN-China Free Trade Agreement (ACFTA), Regional Comprehensive Economic Partnership Agreement (RCEP), or Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) that China wants to join.

Mr. Xu Ningning, Chairman of the RCEP Industrial Cooperation Committee, Executive Director of the China-ASEAN Business Council, and Chief Expert on China-ASEAN Trade Cooperation, also assessed that under the leadership of the two Parties, economic and trade cooperation between China and Vietnam is bringing practical benefits to the people of the two countries. The two sides are effectively implementing the agreements reached by the senior leaders and governments of the two countries, aiming to further deepen cooperation between the two countries in all fields.

Recently, a Chinese business delegation with about 150 members, of which about 50% are chairmen and general directors of enterprises, visited Vietnam. During the talks, businesses of both countries expressed their desire to strengthen cooperation and conduct very specific connection and negotiation activities, which fully affirms the business investment opportunities in Vietnam.

Mr. Hua Ningning said that Chinese enterprises are very willing to invest, develop and start businesses in Vietnam. Vietnam has also attracted Chinese enterprises with a series of preferential policies and favorable investment and business conditions.

The building of a strategic and comprehensive business community between China and Vietnam continues to inject new vitality and momentum, bringing economic and trade cooperation between China and Vietnam to new heights in the future.

With the visit of General Secretary and President To Lam to China this time, Vietnam hopes to continue to find more opportunities to increase export industries to the market of the billion-people country.

Results from new substantive partnerships

Besides exporting goods, railway connection projects are also expected to be an important topic on the agenda of the two leaders of Vietnam and China.

With new trade agreements coming into effect, seamless infrastructure connectivity is seen as a key element for the supply chain between the two countries. Given current capacity, building modern, high-speed railways is a viable option.

Many new opportunities for economic, trade and infrastructure cooperation between Vietnam and China are expected in the future (Source: Lao Cai Newspaper)

In December 2023, Chinese General Secretary and President Xi Jinping also raised the issue, proposing aid and loans to help upgrade Vietnam's railway system. The two countries also signed two memorandums of understanding (MoUs) to enhance railway cooperation.

According to experts, this will be one of the areas in which Vietnam and China hope to achieve new substantive cooperation results.

Based on the trade needs between the two countries, the potential for cooperation can be achieved on the three existing railway lines from Lao Cai to the port city of Hai Phong via Hanoi and from Lang Son to Hanoi, or research to build a third line along the coast from Mong Cai to Hai Phong.

During his visit to China in June, Prime Minister Pham Minh Chinh also called on Chinese industry players to fund and provide technology to Vietnam's railways, such as train manufacturer CRRC and China Railway Signal & Communication.

Vietnam is currently focusing on attracting substantial and highly effective capital to upgrade and build new infrastructure, in which the domestic railway network is of great concern due to its significant degradation. Among them, the 1,500 km long expressway from Hanoi to Ho Chi Minh City, with an estimated cost of about 70 billion USD, is being urged to be the country's largest infrastructure project ever.

Source: https://baoquocte.vn/dong-luc-moi-cho-hop-tac-thuong-mai-dau-tu-viet-nam-trung-quoc-283067.html