The Sino Vietnamese economy and trade are becoming increasingly popular step by step

Editor's note: This year marks the 15th anniversary of the establishment of a comprehensive strategic partnership between China and Vietnam. The high-level exchanges between the two countries are frequent, and exchanges in various fields such as economy and trade are also increasing. At the end of November, when the 12th meeting of the China Vietnam Economic and Trade Cooperation Committee, which jointly discussed the high-quality development of economic and trade relations between the two countries, was held in Hanoi, Vietnamese news agencies reported that "Vietnam China trade cooperation has huge space and is a highlight of the comprehensive strategic partnership between the two countries.". Vietnamese media also reported that China has been Vietnam's largest trading partner and second largest export market for many years, and Vietnam is China's largest trading partner in ASEAN and the fourth largest trading partner in the world. Recently, multiple experts from China and Vietnam combined their research and observations to tell the Global Times about the comprehensive cooperation between China and Vietnam in the field of economy and trade, and looked forward to future development trends.
"My family exported over 3000 tons of durian to China in the first half of the year."
Former Vietnamese Ambassador to China, Pei Zhongyun, stated in an interview with a special reporter from Global Times that Vietnam's economic and trade cooperation with China has evolved from simple trade to a high level of cooperation closely related to the industrial chain and supply chain. This is mainly due to the political guidance and strategic control of the high-level officials of the two countries, as well as the sustained, stable and healthy development of the comprehensive strategic partnership between the two countries. The economies of the two countries have significant complementarity, and deepening economic and trade cooperation is fully in line with the fundamental interests of both countries.
The data is the most convincing. In 1992, when China and Vietnam signed the Economic Cooperation Agreement, the trade volume between the two countries was only 179 million US dollars. In 2000, the trade volume between the two countries exceeded 2 billion US dollars, followed by a scale of 50 billion US dollars in 2012, over 100 billion US dollars in 2017, and over 200 billion US dollars for two consecutive years in 2021 and 2022. In the first 10 months of this year, the bilateral trade volume has reached 185.1 billion US dollars.
The continuous growth of Sino Vietnamese trade is inseparable from the convenient and fast transportation. According to media reports, as of the end of November, Guangxi has operated a total of 1073 China Vietnam freight trains, transporting a total of 594500 tons of import and export goods. Over the past six years, the China Vietnam freight train has become a direct link between the two countries in economic and trade exchanges.

The growth of trade cannot be separated from the completeness of port infrastructure. In recent years, the central and local governments of both sides have attached great importance to the upgrading and renovation of ports and improving customs clearance efficiency. International ports are all connected by highways, and China's high-speed rail has been built to border areas and will soon open to port cities, waiting to connect with Vietnam. Recently, both sides have jointly launched the construction of "smart ports" with the Friendship Customs Port as a pilot, striving to achieve 24-hour non-stop customs clearance as soon as possible.

Border trade is also receiving increasing attention from both China and Vietnam. For example, Dongxing, a county-level city under the jurisdiction of Fangchenggang City in Guangxi, is the only port city between China and Vietnam connected by sea and land. Mang Street is the largest, most open, and most promising economic special zone in northern Vietnam. At the end of November, Fangchenggang and Mangjie Market held bilateral trade and tourism investment promotion activities, including the 15th Vietnam China International Trade and Tourism Expo in 2023, the Vietnam China Agricultural, Forestry and Aquatic Products Import and Export Trade Matchmaking Forum, and the Mangjie (Vietnam) and Dongxing (China) International Port Border Tourism Promotion Forum, which attracted widespread media attention.
Global Times reporters have interviewed multiple sessions of China International Import Expo (CIIE), and the well-known brand "Zhongyuan Coffee" from Vietnam is one of the exhibitors that can be seen frequently. In addition to exporting coffee products to China, Zhongyuan Coffee has also opened offline stores in China.
In addition, durian from Vietnam is also a Vietnamese agricultural product that has attracted attention at recent CIIE. According to Vietnamese statistics, in the first 10 months of this year, Vietnam's vegetable and fruit exports to China reached 3.18 billion US dollars, a year-on-year increase of 165%, accounting for 65% of the total national fruit and vegetable exports. Among them, Vietnamese durian is one of the favorite tropical fruits among Chinese consumers. After Vietnam's durian was allowed to enter the Chinese market in July last year, it directly drove a surge in vegetable and fruit exports to China. A woman who runs a fruit business in Langshan Province, Vietnam said, "My family exported over 3000 tons of durian to China in the first half of the year, and I have already made a lot of money."
At the recently concluded 6th CIIE, Vietnam made its debut as one of the guest countries, with as many as 34 participating companies. The reporter of the Global Times noticed that the Vietnam exhibition area, with the theme of "the window of Vietnam China ASEAN Free Trade Area", displayed handicrafts, fragrant rice, coffee, Rice noodles and other products, and arranged a booth to introduce Vietnam's tourism resources. The Vietnamese government news website stated that participating in the CIIE not only helps to enhance Vietnam's national image in the fields of economy, investment, tourism, etc., but also promotes the brand of Vietnamese enterprises to China and other countries around the world, thereby attracting foreign investment and creating conditions for Vietnamese enterprises to expand their market.
"Vietnam has a unique position in industrial and supply chain cooperation."
The highlights of China Vietnam economic and trade cooperation are not only reflected in trade, but also in the accelerated promotion of investment and industrial cooperation. During the first half of the year, a special correspondent from the Global Times conducted in-depth research on industrial zones in Vietnam's cities of Hanoi, Beining, Beijiang, Fushou, Haiyang, and Haiphong. It was found that compared to five years ago, the proportion of Chinese enterprises in various industrial parks has significantly increased, and the signs of Chinese enterprises are particularly prominent. Almost all representatives of Chinese companies interviewed stated that they chose to invest in Vietnam and are optimistic about its development prospects. A person in charge of a Chinese enterprise doing investment consulting business in Vietnam said, "Our company mainly engages in investment consulting business in Vietnam. From January to September this year, the company has provided consulting services to 23 Chinese enterprises planning to invest in Vietnam, involving industries such as chemical, tire, pharmaceutical, and food. Among them, 7 enterprises have successfully obtained investment licenses in Vietnam."
Vietnamese Consulate General in Nanning, Commercial Consul Nguyen You jun, told a special reporter from Global Times that investment and trade are the two driving wheels of Vietnam's economic growth. Vigorously absorbing foreign investment is a long-term policy of the Vietnamese government. Vietnam now and in the future welcomes Chinese enterprises to invest in Vietnam. "The fact has proven that investing in Vietnam will definitely achieve the best win-win situation.".
Since 2018, Chinese companies have significantly accelerated their investment in Vietnam. According to statistics from the Vietnamese Ministry of Planning and Investment, China has invested in approximately 3949 projects in Vietnam in the first eight months of this year, with an agreement amount of nearly 25.8 billion US dollars, ranking sixth among all countries and regions that have invested in Vietnam. In September, the investment agreement amount of Chinese enterprises in Vietnam reached 2.92 billion US dollars, ranking second. Various types of Chinese enterprises have invested in Vietnam, providing employment opportunities for hundreds of thousands of local people, improving local industrial support, and driving local export growth. China's investment in Vietnam's textile industry has been increasing year by year, and several large domestic modern textile enterprises have formed a relatively complete industrial chain in the local area.
In fact, China Vietnam economic and trade cooperation has entered a new stage of building an international industrial and supply chain. In 2022, the trade volume between the two countries is about 235 billion US dollars, of which Vietnam imports about 140 billion US dollars from China, mainly for intermediate products such as industrial raw materials, components, and mechanical equipment. Vietnam imports related intermediate products from China, which are processed and assembled before being exported to the outside world.
Many experts believe that the construction of a strong, stable and resilient international industrial chain supply chain in East Asia and Southeast Asia by China and Vietnam relying on market forces is the most vivid manifestation of the great success of the joint construction of the "the Belt and Road", which not only has important economic significance, but also has important strategic significance.
Zhao Weihua, Director of the Center for Relations between China and Surrounding Countries at Fudan University, and his team conducted in-depth exchanges with scholars from research institutions such as the Hanlin Academy of Social Sciences in Vietnam and Chinese entrepreneurs in Vietnam during their research visit to Vietnam last month.   Zhao Weihua said that Vietnam's economy is very dependent on foreign trade. Among the three major trading partners of Vietnam, China, the United States, and Europe, Vietnam's trade with China and Europe can all be conducted by land, so it is more interested in railways, which is also China's advantage.
In the view of Gu Xiaosong, an expert on Vietnamese issues and director of the ASEAN Research Institute at Hainan Tropical Ocean Institute, Vietnam holds a unique position in China's industrial and supply chain cooperation with other countries. Currently, in the fields of clothing and electronic products, China exports a large amount of raw materials and components to Vietnam for processing, and then exports finished products to the United States, Europe and other places. This chain is crucial for Vietnam's economic development, employment, government finances, and also provides a window for Chinese enterprises to export.
Gu Xiaosong told Global Times reporters that although Vietnamese business people also recognize that this close cooperation with China in the industrial and supply chains may be under pressure from the United States and Europe, this cooperation carries huge commercial benefits. If it were to be disconnected from China, it would be difficult to sustain Vietnam solely based on its own industrial foundation and manufacturing capabilities. Therefore, Vietnamese companies often take measures to avoid adverse effects from the West. He also stated that scholars from both China and Vietnam have discussed the implementation of "two countries, one enterprise" in the border areas of the two countries, which means that the same enterprise has factories on both sides of the border area. Upstream materials from China can be quickly transported to Vietnam for processing, improving cooperation efficiency.
"Expanding economic and trade cooperation will only lead to mutual benefit and win-win outcomes. Why not do so?"
At the 12th meeting of the China Vietnam Economic and Trade Cooperation Committee, China stated that it will continue to take active measures to promote smooth trade between China and Vietnam, support both sides in strengthening cooperation in railway, 5G and other infrastructure construction, accelerate investment cooperation in the digital economy and green development fields, expand cooperation in agriculture, border trade, supply chain, industrial parks, and local areas, and is willing to work with all parties including Vietnam, Implement the Regional Comprehensive Economic Partnership (RCEP) with high quality and accelerate the construction of the 3.0 version of the China ASEAN Free Trade Area.
At the beginning of 2021, the Prime Minister of the Vietnamese government approved the release of the National Strategy for the Fourth Industrial Revolution by 2030. The strategic goal is to fully utilize the opportunities brought about by the Fourth Industrial Revolution, fundamentally grasp and widely apply new technologies in various aspects of society and economy; Gradually developing new technologies to support the updating of Vietnam's growth model, combined with strategic breakthroughs and national modernization, to promote economic restructuring; Accelerate the development of the digital economy.
Zhao Weihua's perception during his research in Vietnam is that, in the context of promoting the National Strategy for the Fourth Industrial Revolution, Vietnam hopes to invest in high-tech and large-scale Chinese enterprises that can bring advanced management experience. The Vietnamese side also hopes that Chinese enterprises that come to invest can increase the proportion of local procurement and local employment. Zhao Weihua told Global Times reporters that although Vietnam's current labor costs are still relatively low, Vietnam hopes to gradually phase out labor-intensive, low tech, and heavily polluting traditional industries, such as the textile industry.
Zhao Weihua said that Vietnam has a positive evaluation of RCEP, and the tariff reduction it brings benefits to countries such as Vietnam, which is conducive to promoting its exports to China. Vietnam attaches great importance to the export of agricultural products to China, which is the largest export market for Vietnamese agricultural products. Vietnam also recognizes that China's demand is changing, and ordinary agricultural products can no longer meet the demand. Instead, it needs to export high-quality agricultural products. Therefore, although Vietnam welcomes investment from large enterprises more, it generally welcomes various types of Chinese enterprises in the agricultural product field, hoping that they can help Vietnam with food processing in fields such as rice, tropical fruits, and aquatic products, and export to China.
Xu Liping, a researcher at the Asia Pacific and Global Strategy Research Institute of the Chinese Academy of Social Sciences and director of the Southeast Asian Research Center, recently conducted research and investigation in Vietnam, He told Global Times reporters, "One major direction for future Sino Vietnamese economic and trade cooperation is in the digital economy field. The other is in the green economy field. Vietnam has a very high demand for solar energy and needs to promote the rapid development of the photovoltaic industry. Therefore, there is a relatively large space for cooperation between China and Vietnam in solar energy." Xu Liping said that Vietnam still faces challenges such as a lack of technical talents in its transition to new energy, In recent years, China has developed rapidly in the field of new energy, and the complementarity between the two sides is strong.
Xu Liping stated: China regards Vietnam as a priority direction for China's peripheral diplomacy. Vietnam regards the development of relations with China as a strategic choice and top priority. Both sides attach great importance to each other's diplomatic positioning. Although Vietnam's bilateral relations with the United States and Japan have been elevated to comprehensive strategic partnership, don't forget that this year marks the 15th anniversary of the establishment of the comprehensive strategic partnership between China and Vietnam. Our relationship has not only lasted longer, but also gained more cooperation Write the two characters'. ' He believes that China and Vietnam still need to jointly tap into the potential of economic and trade cooperation, and promote deep cooperation in their industrial and supply chains.
Some Vietnamese analysts believe that the continuous strengthening and consolidation of political mutual trust between China and Vietnam has supported the overall economic and trade cooperation. Ruan Youjun told a special reporter from Global Times, "I believe that the economic situation between Vietnam and China next year will definitely be better than this year, and the economic and trade cooperation between the two countries will definitely show new signs of improvement."
Pan Yubao, an economic policy research expert who once served as the Commercial Counselor of the Vietnamese Embassy in China, has been retired for many years. However, he still frequently pays attention to the situation of Sino Vietnamese economic and trade cooperation. He told a special correspondent of the Global Times that the depth and breadth of cooperation between the two sides can be further expanded. Pan Yubao candidly said, "Vietnam really needs to purchase industrial equipment and products from China because it is the most cost-effective choice. At the same time, China also needs to import agricultural and resource products from Vietnam. More importantly, the two countries are adjacent and dependent, with convenient transportation. Expanding economic and trade cooperation will only achieve mutual benefit and win-win results. Why not do it?"