According to the Trade Ministry of Vietnam, two-way trade exchange via Vietnam-China border gates will reach US$5 billion in 2005 with a target of US$10 billion in two-way trade exchange between the two countries to be reached by 2007.
In late September, the Ministry of Trade held a conference in Lang Son to review border trade exchange in seven Northern provinces. Sharing their borders with China, seven provinces, including Cao Bang, Lang Son, Quang Ninh, Lao Cai, Ha Giang, Lai Chau and Dien Bien, have import and export activities with China making important contributions to their gross domestic product (GDP). Border trade has changed the socio-economic field of the provinces with well-developed infrastructure facilities, rapid urbanisation and improved border security.
Addressing the conference, Deputy Prime Minister Vu Khoan stressed that despite good results, there were other issues to be settled. For example, two-way border trade exchange has yet to match the political ties between Vietnam and China and potential of each country. Also, the quality of trade goods is poor, so they cannot depict the real capability of the two countries.
Furthermore, smuggling, pirated goods, fake money, and trade fraud are still widespread along the border. Apart from well-developed busy border gates, such as Mong Cai, Huu Nghi and Lao Cai, trade exchange in many border gates and markets remains fragmented, mainly implemented by residents along the border itself.
According to Khoan, it is impossible to remove border trade in the short term, but it will be reduced according to the situation on the ground. This is to promote official trade exchange channels. However, ministries and agencies should avoid negative impacts, reducing administrative measures and promoting economic measures.
Regarding the Vietnam-China trade development orientation, Khoan stressed: “It is necessary to develop strategies for Vietnam-China trade development, making a good link-up between border provinces with other localities nationwide to promote export; getting information, analysing and forecasting the situation, taking advantage of border trade policies and the potential of border provinces; continuing to develop the border gate economy to attract investment and develop tourism, generating more income sources for centrally-run and locally-run budgets.”
Hai Nam
Vietnamese
