Vietnam-China Business Forum: Comprehensive Economic Cooperation

 

“It is the right moment to intensify the economic and trade relations between Vietnam and China”, said VCCI President Vu Tien Loc. The Business Forum and SME Day are the opportunities for business communities and related authorities of the two countries to materialize the top-level agreement between the two countries following the visit of General Secretary Nong Duc Manh.

 

According to experts, Vietnamese and Chinese economies can complete each other and promise important developments in many areas. Multilateral and bilateral cooperation programmes such as China-ASEAN Free Trade Area, China-ASEAN Exhibition and Fair, Vietnam-China “one ring and two corridors”, Vietnam-China Business Forum have created a favourable ground for bilateral cooperation.

 

Chinese Ambassador Hu Kanwen said that the bilateral economic cooperation has entered a new stage of development with high growth rate of 30% a year. Since 2004, China have been the biggest partner of Vietnam in two consecutive years, the biggest import market and the third biggest export market of Vietnam. According to the statistics of Chinese Customs Office, in the first 8 months of 2006, the two-way trade value was US$6.22 billion, increased 19% that of corresponding period last year. He also believed that the goal of US$10 billion in two-way trade value can be attained even this year instead of 2010.

 

The Ambassador pointed out the success in the bidding of projects. In 2005, Chinese businesses received new contracts valued at US$1,156 million. In the first half of 2006, the new contracts hit US$810 million. Vietnam is now one of the top ten bidding markets of China.

 

In recent years, Chinese investments in Vietnam maintained a stable growth. According to Ministry of Planning and Investment, by the end of August 2006, China has 382 investment projects with registered capital of US$805 million. It is expected that after the WTO accession, Vietnamese market will be expanded, investment environment will be improved and attractive, the bilateral cooperation will be further promoted.

 

The Organizing Committee of the forum also introduced the China-ASEAN Trade Fair (CAEXPO) to be soon held in Nanning, Guangxi (China). 11 countries will jointly organize the trade fair in three levels: government, trade associations and businesses. According to Mr. Yang Mingkai, Deputy Head of CAEXPO Secretariat, the second CAEXPO will have 3,500 stalls, 25,000 businesses, transaction value of US$1.15 billion, project value of US$5.29 billion. At the first CAEXPO, Vietnam had 121 stalls and 581 entrepreneurs. Currently, 170 Vietnamese stalls have been registered.

Vietnam Business Forum magazine would like to introduce some ideas of experts about this issue: 

Experiences from Chinese businesses
Mr Nguyen Huu Bon, Director of Viet Thang Co., Ltd

 

We should learn from Chinese experiences to produce better and cheaper products. My transport company has three ships of 1,000 DWT each, 12 trucks and good storage network. At this forum, I am looking for Chinese partners to cooperate in the transport of products for export and domestic consumption.

 

However, I think that representatives of taxation and customs offices of the two countries should also be present at the forum to introduce business communities necessary information on the law and regulations as well as corporate law of the two countries.

 

Ms Yu Sinxian, Vice-President, Chinese Development and Reform Commission

 

Chinese SMEs make up 99% of the total number of Chinese businesses, generate over 75% of jobs and nearly 60% of GDP. Chinese government highly values the development of SMEs. In 2003, SME promotion law was promulgated to assist SMEs in capital, market promotion, technology and capital. There are also over 200 documents to improve investment and business environment in favour of SMEs.

 

We stand ready to promote the exchanges and expand cooperation with Vietnamese businesses, encouraging SMEs of the two countries to increase their cooperation in the production, technology, human resources, trade and investment.

 

 

The trade turnover across Lao cai – Hekow border gate increases 30-35% a year. In 2005, it hit US$430 million or 3.2 times that of 2000. According to the plan, in 2007, Lao Cai (Vietnam) and Yunnan (China) will apply “one stop control”, a single customs check and minimize import-export formalities in accordance with the cooperation programme of the Great Mekong Sub-region (MGS). Recently, Lao Cai and Yunnan have also signed agreement to establish Lao Cai – Honghe economic cooperation zone. It will help develop the infrastructure, promote the economic restructuring, attract investment, increase scientific research and technology transfer.