Last updated: Thursday, March 23, 2017
Guangxi Province Strengthening Economic Cooperation with Vietnam
The commercial relationship between Vietnam and Chinese Guangxi province is increasingly important. According to Mr Le Danh Vinh, Vice Minister of Trade, the two-way trade value in 2004 between Vietnam and Guangxi was US$752 million, 13 per cent more than 2003. To promote the relationship, VCCI and Guangxi authorities have organised a seminar on “Economic and commercial co-operation between Guangxi and Vietnamese Northern provinces”. Following are statements from the participants:
Mr Nguyen Quang Hung, Vice Chairman of Quang Ninh People’s Committee: Quang Ninh offers preferential treatment to Guangxi businesses
In recent years, the cooperation between the two provinces has been expanded and fruitful. The cross border trade increased to US$254 million in 2002, US$291 million in 2003 and US$448 million in 2004. Each year, some hundred thousand tourists crossed the border and visited the two provinces. An agreement has been reached by the two provinces to open road transport between Ha Long (Quang Ninh) to Nanning, Beihai (Guangxi). In the coming years, the two provinces must promote investment and trade, exchange market information and increase business match-making.
Chairman Lo Ich Giang, Cao Bang People’s Committee:
increased cooperation in agriculture and forestry
In 2002, an MOU was signed between the two provinces on scientific cooperation for the development of agriculture and forestry, border trade and tourism. To continue the cooperation, Cao Bang will focus on agriculture and forestry including pilot projects on some species of livestock and poultry, and demonstration of Chinese technology. In return, Cao Bang can provide species of hybrid maize to Guangxi. The cooperation can also be realised in industry such as exploitation of iron ore, manganese, aluminium and steel production.
Chairman Zhang Xiu Long, Chongzuo City:
Chongzuo secures privileges to Vietnamese businesses
We encourage Vietnamese investment in Chongzuo especially in food processing. The food sector makes up 37 per cent of the production value of Chongzuo. We also encourage Chinese businesses to invest in the exploitation of coal, manganese and iron in Vietnam. Tourism is also given high priority and ranks third in Chongzuo’s economy. Foreign investment is also encouraged in education, health and service. The income tax rate has been reduced from 33 per cent to 15 per cent. Investors receive tax exemption in their first three years and tax reduction in the following years. Vietnamese investors can also get bank loans with low interest rates.
Mr Zhou Wen Rui, Minister Counsellor of Chinese Embassy:
High growth rates in bilateral trade
Since the start of the China-ASEAN Free Trade Area, the two-way investment and trade between China and ASEAN has continued to develop, especially in the “early harvest programme” of agricultural products. The economic and trade cooperation between China and Vietnam also recorded a new height with bilateral trade value of US$6.7 billion in 2004. Last year, the first China-ASEAN exhibition was organised in Nanning creating a ground for business cooperation. Vietnam has been Guangxi’s top trade partner. Guangxi’s investment in Vietnam makes up 50 per cent of the total investment of the province among ASEAN countries. With this seminar, it is expected that the linkage of infrastructure will be stepped up, especially the land transport to facilitate the exchanges of commodities, trade, tourism between Guangxi and Northern provinces of Vietnam.
Mr Zhang Chi Xin, Economic and Commercial Counsellor of Chinese Embassy:
Bright prospect for economic and trade cooperation
Chinese WTO membership and the establishment of China-ASEAN Free Trade Area have increased Chinese imports from Vietnam. China has granted Vietnamese exports the same tax rates as those of WTO members. Since January 1, 2004, China has abandoned quotas and import permits on petroleum, rubber and tyres in favour of Vietnam. China only applies quotas on six items namely food, cotton, vegetable oil, sugar, wool and fertiliser. It will help Vietnamese businesses to expand trade with China. By January 1, 2006, the tax rates of “early harvest programme” will be down to zero per cent, Vietnam and other new ASEAN members will have a transitional period of 2-4 years.
In the framework of China-ASEAN Free Trade Area, China and four new ASEAN members including Vietnam, will reduce the tax rates to zero by 2015. China-Vietnam trade will be more favourable with increased exports and broader economic cooperation.