ASEAN - China Trade Cooperation: Huge Potential in Construction Industry

He said, like cooperation and investment opportunities in other sectors, prospects for China - Vietnam cooperation in architecture and construction sectors are huge. This delegation of Chinese architecture and construction companies to Vietnam has arrived in Vietnam to seek cooperation opportunities with Vietnamese companies in particular and ASEAN businesses in general.

 

I think the business communities of both sides have many advantages for cooperation, especially the geographical aspect. Therefore, members of this business delegation to Vietnam are comprised of not only construction companies, but also industrial park developers, construction material manufacturers, and construction restoration companies. These are the strengths of Chinese companies, while Vietnam is also speeding up infrastructure development.

 

This time, we worked with the Vietnam Construction Association and some of its member companies in order to find solutions to further cooperation. Both sides expressed wishes for active cooperation and mutual understanding.

 

 

I found that the Vietnamese construction market is developing rapidly and Chinese products are also very diverse there. Hence, what we should do now is to improve product quality to meet consumer requirements. Consumer products are used for both construction projects and for household renovations.

 

In my opinion, Vietnamese companies should strengthen exchanges and cooperation in their fields of operation. Besides, they should introduce industry policies and plans to investors in general and Chinese investors in particular. Then, when Chinese companies invest in Vietnam, they will quickly find right investment directions and improve their investment performances.

 

The two-way trade turnover between Vietnam and China totalled US$32.3 billion in the first six months of 2016, up nearly 2 per cent from the same period of 2015. Of the sum, Vietnam spent US$23.2 billion on imports from China, down 3 per cent year on year, and earned US$9.1 billion from exports to its largest trade partner, up 13.7 per cent year on year.   On investment, China had 1,475 projects with a total registered investment capital of US$10.865 billion as of July 20, 2016, ranking 9th out of 110 countries and territories investing in Vietnam.   Chinese projects are present in 53 provinces and cities in Vietnam and the most preferred localities to Chinese investors are Hanoi, Hai Phong, Lao Cai, Hung Yen, Long An, Ho Chi Minh City, Binh Duong and Dong Nai. Most of the implemented projects are successful and beneficial to investors and to both nations.

Firstly, it is important to attract more Chinese investors and companies to Vietnam to manufacture products and bring them to China for consumption, where there are 1.4 billion consumers.

 

Secondly, we need to better take advantage of free trade agreements (FTAs) with connection to Vietnam - China trade to facilitate Chinese companies investing in production in Vietnam to send their products to third countries for consumption. We should not only care about the bilateral trade performance, e.g. trade surplus or deficit, but also the landscape of Vietnam’s trade with the world, because Chinese products made in Vietnam exported to other countries like Europe and the United States will bring trade surplus to Vietnam. Therefore, we should not look down on Vietnam - China trade ties and only take care of trade surplus or deficit aspect if it beneficially helps Vietnam develop trade with the world.