Vietnam, China Promote Economic, Trade and Investment Cooperation

Mr Li Jiheng led a delegation consisting of nearly 240 leading businesses in Yunnan province. Visiting companies operating in various fields like education, tourism, finance, nonferrous metal, energy, chemical, construction material, machinery engineering, agricultural product, biopharmaceutical, general export, investment and others wanted to seek opportunities to establish and expand business cooperation with Vietnamese partners. This is a good chance for Vietnamese businesses to learn about the Chinese market, meet with Chinese companies to promote their corporate image and search for investment and business opportunities.

 

MrDang Huy Dong, Vietnamese Deputy Minister of Planning and Investment, said Yunnan province - a large economy in the southwest of China - has close investment, trade, manufacturing and tourism ties with the Vietnamese provinces of Dien Bien, Lai Chau, Lao Cai and Ha Giang, and forms the Yunnan - Lao Cai - Hanoi - Hai Phong economic belt in the framework of the “two corridors, one economic belt” cooperation agreement that the two governments signed in November 2006.

Due to geographical and natural conditions, Vietnam and Yunnan province (China) serve as the bridges for air and road traffic between China and ASEAN. Therefore, Vietnam is fully aware of its important role in promoting economic exchange, investment and commerce between China and ASEAN. This also is a chance for Vietnamese enterprises in particular and ASEAN companies in general to seek opportunities in investment, trade, business and manufacturing cooperation in China.

 

Dr Vu Tien Loc, VCCI President, said: The two-way trade between Vietnam and China is expanding rapidly, with an average annual growth of 32 percent in the 2000 - 2010 period. In 2011, the bilateral trade turnover rose 30.7 percent year on year to US$35.7 billion, of which Vietnam earned US$11.1 billion from exports to the neighbouring country, up 52 percent, and spent US$24.6 billion on imports from the latter, up 22 percent. In 2011, China ranked fifth among foreign investors in Vietnam with a total registered capital of US$747 million, up 5.8 percent, bringing its total investment capital in the Southeast Asian nation to over US$3 billion. Most projects are operating successfully and benefiting both sides. China is a top trade partner and investor in Vietnam.

 

Mr Loc added that, powered by two-way relations between the two countries, the relationship between Vietnam and Yunnan province (China) has made a substantial progress. In 2011, the bilateral trade revenues exceeded US$1 billion for the first time, reaching US$1.21 billion, up 27.7 percent year on year. Particularly, Vietnam raked in US$US$240.9 million from its exports to Yunnan, up 49.1 percent, while it imported US$972.8 million worth of goods from Yunnan, up 23.3 percent.

Vietnam mainly exports agricultural products (cassava, rubber, tropical fruits) and minerals to Yunnan, while it imports electricity, fertilisers, chemicals, machines, temperate fruits and flowers from the Chinese province. “In general, the structure of imports and exports are mutually complementary. Especially, Yunnan’s electricity export to Vietnam exerts a dramatic effect on production activities and livelihoods in northern localities,” Mr Loc said.

 

Yunnan is now an entering investor in Vietnam and its focus is primarily given to the mining industry. The Vietnam - China steel and iron mill, invested by Kunming Iron & Steel Group and Vietnam Steel Corporation in Lao Cai province, is a typical investment project.

 

Mr Dong said Vietnam will give priority to FDI projects using modern, environment-friendly technologies, using natural resources, minerals and land effectively, specialising in industrial supporting industries, services of local advantages and having high intellectual content. The country will also prioritise projects manufacturing products of high competitive advantage and products capable of entering global production and value chains.

 

Vietnam will restrict investment in non-manufacturing sectors that result in an increase in trade deficit, use up energy, exploit raw materials, waste resources, and employ outdated, environment-polluting technologies.

 

“We warmly welcome and readily facilitate Chinese investors to implement investment projects to tap mutual potential and strengths,” said Mr Dong.

Mr Li Jiheng, Governor of China's Yunnan province, said: To further strengthen investment cooperation, the two sides promote the sustainable, healthy and rapid development of the bilateral economic and trade relations. Accordingly, the Yunnan provincial government will encourage importation of Vietnamese products and encourage Yunnan enterprises to invest in Vietnam, and strengthen bilateral cooperation in the fields of energy, mineral resources, metallurgy, agriculture and manufacturing.

 

In addition, both sides should speed up the connection of the two transportation systems including railway and road construction and upgrading, exploring the possibility of trans-border transportation by the Red River, he said. He suggested consolidating border-gate management and administration, building electronic information exchange systems, and facilitating single-window customs procedures in Hekou - Lao Cai border gate to boost customs clearance. Especially, the two governments are necessarily urged to accept negotiations to sign a framework agreement on trans-border economic zone between Honghe (China) - Lao Cai (Vietnam).