“China will import more than US$10,000 billion of goods and invest over US$500 billion in other countries in the next five years. This will be a great commercial opportunity for enterprises in the Asia - Pacific region, including Vietnam,” said Mr Li Zhenmin, Commercial Counsellor at the Chinese Consulate General in Ho Chi Minh City at a conference called “Enhance Business Cooperation and Boost Exports to the Chinese Market" held by the Ho Chi Minh City Branch of the Vietnam Chamber of Commerce and Industry (VCCI-HCM). The event was part of the project "Support for Vietnamese enterprises to promote internal resources, develop and diversify material markets for production and export, and enhance national competitiveness."
Delivering the opening keynote speech, VCCI - HCM Deputy Director Nguyen The Hung said that Vietnam - China commercial and economic ties have developed finely in the past years. Currently, China is the biggest trade partner of Vietnam and Vietnam is the second largest ASEAN trade partner of China. However, Vietnam is running a huge trade deficit with China. He said, to reduce the gap, Vietnam needs to boost exports to China to narrow trade deficit. In 2014, the total export-import turnover of the two countries reached US$58.7 billion, an increase of 16.5 percent compared to the same period of 2013. Of the sum, Vietnam earned US$14.9 billion from exports to China, up 11.8 percent while it spent US$43.8 billion, a rise of 18.2 percent, which all led to a US$28.9 billion trade deficit. In the first five months of 2015, Vietnamese exports to China reached US$6.1 billion, a drop of 1.2 percent year on year while its imports from China were worth US$15.9 billion, a year-on-year surge of 19.1 percent. Vietnam suffered a trade deficit of US$9.8 billion with China.
Sharing the standpoint with Mr Hung, Mr Li Zhenmin admitted that trade deficit between Vietnam and China ballooned for a long time. To narrow the gap, the Chinese government always encourages businesses to strengthen cooperation and increase imports from Vietnam. According to statistics from the Chinese General Administration of Customs, China's imports from Vietnam have seen annual average growth of 15 - 20 percent in recent years, a relatively high rate. For many years, China has been the largest buyer of agricultural exports from Vietnam, accounting for a third of Vietnam’s agricultural export turnover.
In addition to trade deficit, Vietnam - China trade relations also face a lot of barriers, particularly information. Chinese importers do not understand the Vietnamese market fully while Vietnamese exporters also encounter obstacles and should seek only competent and reliable Chinese importers. This requires strengthened information coordination and exchange between competent authorities of the two countries increase information transparency. Accordingly, Mr Li proposed the Governments of Vietnam and China should set up a transnational e-commerce floor for the two countries and take advantage of the internet to increase information transparency, which would create favourable conditions for the two countries' businesses.
Mr Li said the Government of China pays deep attention to import quality and reputation. To prevent intellectual property infringements and counterfeit exports, improve the image of Chinese products and maintain export-import order, the Chinese Government is carrying out export inspection policies. Therefore, China very much expects to cooperate with relevant authorities of Vietnam and study cooperation with Vietnam like setting up hotlines, supporting lawsuit resolution, monitoring exports and inventories, testing products and organising information exchange meetings, thus helping boost bilateral economic cooperation ties.
The Chinese Government is basing on Resolution of the 18th Communist Party of China Congress, aiming to double its GDP and income per capita of 2010 in 2020. In the next five years, China will import more than US$10 trillion worth of goods and materials from around the world while its outbound investment will reach US$500 billion. This will be a great commercial opportunity for enterprises in the Asia - Pacific region, including Vietnam, said Mr Li Zhenmin. Thus, he recommended Vietnamese businesses seize opportunities, learn about the China market and seek long-term cooperation with partners. The Government of China will work closely with Vietnamese government agencies to create favourable conditions for raising bilateral trade cooperation.
My Chau
Vietnamese
