Vietnam – China: Potential for Agricultural Cooperation

 

The Chinese business delegation attending the forum was led by Mr Huang Hai Bo, President of the Guangxi - ASEAN Economic and Trade Promotion Association (China). Attending Chinese businesses are engaged in healthcare, agricultural products, building materials, auto parts, hotel and tourism investment.

 

Dr Doan Duy Khuong, Vice President of VCCI, said that China has been the largest trade partner of Vietnam since 2004. China is the No. 1 export market of Vietnam for computers, natural rubber, coal and rice.

 

According to statistics of the General Department of Vietnam Customs, in 2015, the two-way trade turnover reached US$66.6 billion, up 13.4 per cent from 2014. Particularly, Vietnam exports to China totalled US$17.1 billion, up 14.8 per cent and its imports from the neighbouring nation grossed US$49.5 billion, up 13.3 per cent. Vietnam ran a trade deficit of US$32.4 billion in the year, up 12.5 per cent.

 

In January 2016, the bilateral trade revenue reached US$5.23 billion, down 8.14 per cent from the same period of 2015. Specifically, Vietnam earned US$1.33 billion from exports to China, up 1.05 per cent, while spent US$3.9 billion on imports, down 10.9 per cent. The trade deficit to Vietnam was US$2.58 billion, down 16.02 per cent.

 

Vietnam’s main exports to China include computers, electronic devices and parts; fibre and yarn; vegetables; cassava, crude oil; coal; rubber; rice; fruits; and seafood. Meanwhile, it imports machinery, equipment, electronic devices and parts, cameras, camcorders, apparels, steel, and fertilisers.

 

As of February 20, 2016, China invested US$10.387 billion in 1,336 projects in Vietnam, ranked ninth among other 100 countries and territories investing in Vietnam. Chinese projects are present in most localities in Vietnam, focusing in Hanoi, Hai Phong, Lao Cai, Hung Yen, Long An, Ho Chi Minh City, Binh Duong and Dong Nai. Most projects are successful and supportive to Vietnam - China bilateral relationship development.

 

He said, the ASEAN - China Free Trade Area officially started at the end of 2015, bringing taxes on 7,000 items to zero. On February 4, 2016, the Trans-Pacific Partnership (TPP) was officially signed by 12 countries, including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam. TPP signatories account for 40 per cent of global GDP and 30 per cent of global trade. TPP member countries will scrap import duties on products from other members. Vietnam with its advantages of geographical location and dynamic economic structure is becoming one of the trade centres and gateways to vast markets in ASEAN and the world.

 

Mr Pham Cong Dung, Head of Commercial Division of Agro-forestry-Fisheries Products and Salt Production Department under the Ministry of Agriculture and Rural Development, said Vietnam has introduced many policies to encourage cooperation and connectivity development in agricultural production and consumption. Agricultural companies are offered tax preferences, land rent reduction and exemption among other preferential treatments.

 

Besides, Vietnam has applied many incentives and supports to farmer representative units, including free and reduced land rents for factory construction, supports for plant protection, personnel training support and others.

 

At the forum, delegates were introduced Vietnam’s policies on agricultural product development, policies on management and use of medical equipment and functional foods.

 

According to organisers, the forum was s a good opportunity for businesses of both sides to strengthen exchanges, explore markets, meet partners and explore business cooperation opportunities.