Reducing trade deficit with China, which is forecast to be around US$3 billion this year, will be high on the agenda of the ongoing five-day visit to the northern neighbor by the General Secretary of Communist Party of Vietnam, Nong Duc Manh, foreign media reported.
Manh’s mission, however, is neither impossible nor easy. Vietnamese former President Tran Duc Luong in his 2005 China visit also asked it to resolve the problem, and the host pledged significant support for Vietnam. But the deficit level has got out of hand and is now still on a growing trend. Last year, the figure hit $ 2.81 billion compared to $1.72 billion in 2004.
Now, Manh has to finish it. He has been given many chances that the current regional situation has proposed.
The “rising China”, with its increasingly growing GDP of more than $2,000 billion, is becoming a reputed threat to its neighbors and the world giants, even the US. More than ever, it needs to express a friendly attitude, showing that it freely helps Vietnam which it considers a "good neighbor, good friend, good comrade and good partner", and proves that “China is rising peacefully” without harm.
China has been creating a stable buffer zone, including Vietnam, to focus on developing its domestic economy. The country therefore needs to maintain good relations with its neighbors and their support, especially from communist Vietnam which is recently being tugged by Western countries, to gain general power and to compete with Japan to become the leader in East Asia.
Moreover, China wants to put its control over the upcoming China-ASEAN zone, a large fastest-growing economic group with a population of nearly two billion people, one third of the world’s that Vietnam is becoming the gate.
In a formalistic way, China has met the small southern country’s request. It has committed to import more farm produce, foodstuff and household items from Vietnam, besides traditional goods such as crude oil and coal, to help Vietnam reduce its trade deficit. China also pledged to accelerate co-operation with Vietnam in large projects, including those that utilize its resources. Chinese businesses were encouraged to invest in Vietnam to produce goods and then export back to China or a third country.
But international observers believe that the deficit that Vietnam suffers seems to expand in the coming time and ever faster because Chinese diplomatic commitments are indefinite and unreliable.
Besides, its governing policies are not effective. This has been proved that it cannot control its own economy, such the failed efforts to slow down its overheated economy.
Although China pledged with significant support, but it will not give anything away and Vietnam’s efforts are the decisive factor, international media warned.
Vietnamese exports to China are very diverse with 15 export items, but staple goods are rubber, seafood, cashew nut, vegetables, fruit, raw minerals and fuel and it imports fertilizers, energy, petrol, cars and high-valued products.
Vietnam reaped $1.44 billion from exports to the neighboring country, up 14.5 per cent on-year, meanwhile it spent up to $3.2 billion on imports, up 18.7 per cent on-year. The figure resulted in a trade deficit of $1.76 billion during the period during first half of 2006.
Foreign Media
Vietnamese
