In recent years, cross-border trade between Vietnam and neighbouring countries has thrived. With expanding markets, more exporters and importers and growing and diverse merchandise demand, cross-border trade turnover keeps rising rapidly. Mechanisms, policies as well as administrative procedures have been amended by relevant ministries to make the business environment favourable for cross-border trading activities. Border-gate infrastructure for trade activities has been constantly upgraded by the Government of Vietnam.
Potential
According to the report from the Steering Committee for Provincial Cross-border Trade, cross-border trade turnover reached US$72 billion from 2008 to September 2013, an average annual increase of 10 percent. In 2012, the value was US$13.1 billion, up 27 percent over 2008 and accounted for over 5 percent of the country's gross trade revenue. Along with fostering friendship relations, commercial and economic cooperation with bordering countries is expected to help boost Vietnam's two-way trade revenue with China to US$60 billion, with Laos US$2 billion and with Cambodia to US$5 billion in 2015.
Along the borderline shared with three nations of China, Cambodia and Laos, Vietnam has 285 border-gate markets and 28 border-gate economic zones. Border-gate economic zones have to date drawn nearly 70 foreign direct investment (FDI) projects with a total registered capital of over US$700 million and some 500 domestic direct investment (DDI) projects with a total registered capital of nearly VND40 trillion. Trade turnover across border gates expand relatively high year after year, reaching 24 percent in the 2006-2010 period, higher than the country's average trade growth. The State Budget collected some VND7.5 trillion from economic zones in 2012, of which the zones along the borderline with China accounted for 87.4 percent.
Solutions to boost cross-border trade
At the meeting on cross-border trade hosted by the Ministry of Industry and Trade on November 25, Deputy Minister Nguyen Cam Tu said: "Cross-border trade is positive but it is still incommensurate with potentials and advantages of Vietnam and border-sharing countries. Although cross-border trade management is peculiar, it is still imposed general export and import policies in accordance with international laws. Hence, border-sharing provinces are yet to promote their potentials and advantages. Besides, the coordinating reporting mechanism among management authorities is irregular.
Locally, Vice Chairman of the Lang Son Provincial People's Committee Nguyen Van Binh said in some border-sharing areas, degraded traffic routes and insufficient warehousing and storage facilities usually congest agricultural exports at border gates.
Local representatives proposed the Government issues tax management decentralisation policies. Budgets collected from cross-border trade should be retained by localities to invest in infrastructure. Border-sharing provinces should be given more incentives.
Regarding border trade development solutions, Minister of Industry and Trade Vu Huy Hoang said Vietnam will actively negotiate with bordering countries to build and sign trade agreements and coordinate with the neighbours - China, Laos and Cambodia - to study overall trade development plans. Additionally, the ministry will work with relevant ministries and agencies to complete cross-border trading management policies.
Huong Ly
Vietnamese
