In 2006, two-way trade value between Vietnam and China reached US$10 billion. The figure is expected to increase to US$15 billion by 2010. Vietnam Business Forum discussed with Vietnamese trade counsellor to China Dao Ngoc Chuong the two countries’ trade relations.
In 2006, trade between Vietnam and China saw a break through with a turnover reaching US$10 billion. Which Vietnamese goods do you think have good potential in the Chinese market?
China is a leading export country in the world. Therefore, Vietnamese enterprises should not export to China goods or items in which the country itself has great potential, such as garments and footwear. Vietnam has great potential to export tropical farm products, such as rubber, cashew nuts, and cassava, alongside crude oil, canned fruit and wooden handicrafts. Also, Vietnamese have great potential to export industrial products, including plastic, electronic and electric accessories, electric cables and wires, to China. Each year, China spends billions of US dollars importing electric cables and wires alone. With good development orientation, Vietnamese enterprises will find it easier to enter the third largest export market.
Many Vietnamese enterprises have suffered great losses due to carelessness. What should they do to avoid such losses?
Vietnamese enterprises had developed border trade relations with Chinese partners before developing official trade relations. With border trade relations Vietnamese enterprises focused on short-term benefits instead of long-term objectives. Thus, Vietnamese enterprises did not want to develop trade relations further.
As Vietnam-China economic ties have made great progress, enterprises should develop their ties. To avoid economic losses, it is important to identify partners. Accordingly, at first, enterprises should learn whether their partners have been licensed to provide import and export activities or not. At the same time, enterprises should investigate offices, infrastructure, warehouses and workshops of their Chinese partners, gathering information from different sources, despite high costs. Trade contracts should be bi-lingual, English and Chinese, or Vietnamese and Chinese, to avoid any unclear articles and provisions when contracts use Chinese alone.
The Chinese Ministry of Trade has assigned some enterprises to investigate and oversee Chinese trading enterprises, thus providing consultancy and support for foreign enterprises in learning about the prestige and capability of their Chinese partners. Vietnamese enterprises should use the services before signing important contracts.
During business co-operation, it is difficult to get rid of risks. What do you want to advise Vietnamese enterprises to help them cope with the risks?
I think Vietnamese enterprises should be active in limiting risks, as it will be difficult to settle problems when they occur. In the long term, enterprises should use bank payment services for border-trade activities. Also, they should not be careless with official trade activities, as the activities also have risks. In any circumstances, enterprises should closely supervise the implementation of each contract or lot of goods with foreign partners, ensuring that the implementation is in accordance with both sides’ regulations.
What does the trade mission do to help enterprises when problems occur?
Enterprises can ask the trade mission to help them investigate their foreign partners or provide instructions on goods and strategies for their business activities. Once problems occur the settlement is based on signed contracts. The trade mission cannot change the contracts, but can provide enterprises support during the procedural process only.
Reported by Thu Huyen
Vietnamese
