New Opportunities in Vietnam-China Economic Cooperation
After more than 74 years of diplomatic relations (January 18, 1950 - January 18, 2024), Vietnam and China have maintained good development momentum and achieved many important results. The recent visit to China by General secretary of the Communist Party of Vietnam and President of Vietnam To Lam and his spouse has set a new milestone, opening up a period of strong development in the bilateral relationship, especially in investment and trade cooperation.
The geographical proximity, similar consumption habits between Vietnamese and Chinese people, coupled with a long- standing traditional trading relationship have created a great advantage for Vietnam's exports to this market.
According to the General Department of Vietnam Customs, in 2023, exports between Vietnam and China reached 61.2 billion US dollars, up 5.6% compared to 2022. In the first seven months of 2024, Vietnam's imports and exports with China reached 112.2 billion US dollars, an increase of 25% over the same period in 2023. China continues to be the largest trading partner as well as the largest import and second largest export market for Vietnam.
In terms of goods, Vietnam exports to China items such as mobile phones, components, electronic devices, rubber, agricultural products, seafood, and imports machinery, equipment, raw materials for the textile industry, leather and footwear, steel, construction materials and daily consumer goods.
Over the years, Vietnam and China have had many bilateral cooperation agreements as well as multilateral agreements such as the ASEAN-China Free Trade Agreement (ACFTA) and the Regional Comprehensive Economic Partnership (RCEP). In the coming period, China is now promoting its participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
On the occasion of the state visit to China of Party General Secretary and State President To Lam, the Vietnamese Ministry of Agriculture and Rural Development (MARD) and the General Administration of Customs of China (GACC) signed three important agreements, paving the way for the export of fresh coconuts, frozen durian and crocodiles to the Chinese market. China remains the biggest importer of Vietnamese fruit and vegetables, accounting for 64% of the total export turnover with 2.1 billion US dollars in the first half, up 22% compared to the same period last year.
During the visit, General Secretary of the Communist Party of China and President of China Xi Jinping affirmed that China is ready to increase imports of Vietnamese agricultural products and provide favorable conditions for high-quality farm produce of Vietnam to reach its market. In addition, Party General Secretary and President To Lam suggested that the two sides strengthen cooperation in areas where China has many advantages such as green economy and digital economy.
In terms of investment, according to the Ministry of Planning and Investment, there have been 91 countries and territories investing in Vietnam in the first seven months of 2024. China is the leading partner in terms of the number of new investment projects. Chinese FDI continues to flow into Vietnam.
Minister of Planning and Investment Nguyen Chi Dung said that a positive signal is that many major Chinese corporations in the fields of technology, electricity - electronics, processing, manufacturing, infrastructure, renewable energy, and electric vehicles have invested in Vietnam. Previously, Chinese FDI capital in Vietnam used to focus on manufacturing, household wooden furniture processing, iron and steel, footwear, garments, food processing, and plastic packaging. However, in recent years, Chinese FDI capital has shifted to high-tech industries, components, spare parts for industrial production, electronics, automobiles, and green energy.
Economic and trade cooperation continues to be a bright spot in the overall Comprehensive Strategic Partnership of Cooperation between Vietnam and China. Vietnam and China have been and continue to be each other's important trading partners. In fact, there is still much room for development in economic, trade and investment cooperation between Vietnam and China.
Story: VNP Photos: VNA Translated by Hong Hanh