Vietnam-China economic cooperation has developed vigorously in recent years. In 2004, China became Vietnam’s top trade partner. The Chinese market is a main and important market of Vietnam. According to the statistics of the Vietnam Customs Office, in 2004, the two-way trade turnover was US$7.19 billion, or 47.68 per cent more than in 2003. In the first seven months of 2005, it posted US$4,134 billion, 10.26 per cent more than the same period last year.
August 2005, China (excluding Hong Kong and Taiwan) ranked 14th among 62 countries and territories investing in Vietnam, with 346 projects and registered capital of US$710.4 million. Chinese investments focused on industry, construction, services, agriculture, forestry and fisheries.
To promote economic cooperation, the Chinese government has provided the Vietnamese government with a significant amount of ODA in grant aid and preferential credits. In addition, commercial loans are under negotiation for major projects such as bauxite in Dak Nong, and an iron ore joint venture in Quy Sa.
The two governments have also been involved in important cooperation in other fields : civilian aviation and roads and in particular “Two corridors and an economic ring”.
To increase bilateral economic cooperation under the new conditions, new plans and measures should be developed in all fields. The 5th meeting of Vietnam-China Commission for Economic and Trade Cooperation in Hanoi on September 20, 2005 and the visit by Chinese President Hu Jintao to Vietnam in late October are of special importance.
Trade turnover: US$15 billion by 2010
The two countries target US$10 billion in trade by 2007 (or 2008) and US$15 billion by 2010. To this end, Vietnam and China must focus on their main exports. For its part, Vietnam will export crude oil, agricultural produce, aquatic products, minerals and import petrol, steel, fertiliser, materials for garments and footwear. Official trade must be increased to ensure stable and long-term economic growth.
As Vietnam continues a trade deficit, China should accord a preferential treatment to Vietnamese products to encourage Vietnamese and Chinese businesses to increase Vietnamese exports. For instance, in border trade, Vietnamese exports are confronted with stringent technical standards imposed by China.
Economic cooperation
During the visit of Chinese President in late October, the two sides may sign a cooperation agreement on Quang Ninh thermo-power project and transform a commercial loan of US$360 million to development assistance for Ninh Binh nitrogen project. ODA projects will continue for Thai Nguyen steel, Ha Bac nitrogen fertiliser, railway signal modernisation, and plastic mould.
Grant aid projects under negotiation include the Vietnam-China Cultural Palace, Lodging in the Ho Chi Minh Academy, a political training school, and Bac Lieu hospital.
Projects in Lao Cai
Quy Sa iron ore and steel project in Lao Cai with a capacity of 500,000 tonnes a year is a large project and the Vietnamese government wishes to accelerate its implementation.
The governments and business communities of the two countries should increase trade promotion such as International Trade Fairs in Lao Cai and Hekou.
The Vietnamese side has suggested opening a Hanoi - Kunming flight with a stopover in Lao Cai and requests the Chinese side to accelerate the signing of an agreement on building a new bridge over the Red River at Kim Thanh linking Lao Cai and Hekou.
Regarding tourism, the Vietnamese side hopes that the Chinese side will facilitate Chinese inland tourists to visit Vietnam and help upgrade Vietnam’s tourism service.
Vietnamese
