Vietnam - China: Lifting Economic - Trade Cooperation

At the meeting, Deputy PM Minh spoke highly of economic and trade cooperation which have played a crucial role in the comprehensive relations between Vietnam and China in the past decade. Vietnam - China trade relations have developed positively and comprehensively with an average annual growth rate of 30 percent, and Guangdong province of China played an important part.

 

According to the Vietnamese Ministry of Industry and Trade, in 2013, Vietnam-Guangdong trade hit nearly US$12.3 billion, up 40 percent over 2012. By the end of February of 2014, the figure had already reached US$1.71 billion, of which Vietnam’s exports to Guangdong were worth US$720 million, a 19.4 percent year on year rise, while its imports were valued at US$995 million, a 7.5 percent increase over the same period last year. Vietnam is currently accounting for 11.6 percent of the total trade between ASEAN countries with the Chinese province.

 

Do Kim Lang, Deputy Director of the Vietnam Trade Promotion Agency (Vietrade), the Ministry of Industry and Trade, said although exports from Vietnam to Guangdong kept rising in recent years, the value is incommensurate with the potentials and strengths of the two sides. Specifically, each year, Guangdong Province spends up to US$450 billion importing an enormous volume of commodities. Notably, it imports all its coal, 21 percent of its gasoline, and many agricultural products. However, Vietnam’s exports to this market modestly accounted 11.6 percent of ASEAN’s total trade turnover with Guangdong province. According to experts, the infrastructure system - particularly the transport network - is behind this. The transport network of Vietnam connected to routes in “Two Corridors, One Belt" is unable to carry a huge volume of commodities. Currently, although key routes for Vietnam - China trading activities have been restored and upgraded, they remain poor, particularly the backward railway system. Hence, it is quite difficult for container trucks to run between the two nations. In addition, administrative procedures and mechanisms for cross-border trade remain inadequate, inconsistent. The congestion of Vietnam’s agricultural product shipments to China at border gates in a long time and in a large volume is clear proof for this unresolved inadequacy.

Mr Hu Chunhua, Member of the Politburo of the Communist Party of China (CPC) Central Committee and Secretary of the Guangdong Provincial Party Committee, said commercial, economic and investment cooperation potential between Vietnam and Guangdong Province is enormous. Guangdong Province has a high demand for imported energy products and foods while it is strong at electronics, paper, textile and construction material industries which are sought for stronger development in Vietnam. Hence, this is a necessary and important condition for both sides to promote cooperation to raise the capacity.

 

Speaking of specific solutions, he said, the two sides need to quickly scale up investment cooperation in the future. Vietnam needs to pay special attention to improving transport infrastructure to facilitate commodity exchanges and avoid obstacles as earlier. The country must accelerate the construction of economic cooperation zones while embarking on agricultural and fishery cooperation.

 

Vietnamese Deputy Minister of Industry and Trade, Nguyen Cam Tu, said Guangdong Province needs to coordinate with the Vietnamese Ministry of Industry and Trade to carry out contents of the memorandum on economic and trade cooperation between Guangdong and Vietnam. Besides, Guangdong needs to give more incentives to Vietnamese enterprises participating in fairs and seminars in Guangdong. Regarding agricultural and energy cooperation, the two sides need to organise more trade exchange activities and encourage Guangdong enterprises to import agricultural products from Vietnam, as well as invest in supporting industry, chemical and energy projects in Vietnam.

 

Leaders witnessed the signing of cooperative agreements and contracts valued at over US$200 million in the field of farm produce, electronics, telecommunications and training. These point the way toward thriving economic and commercial ties between Vietnam and China.