The China Vietnam freight train creates a 'big channel' for international trade

According to the statistics of China Railway Nanning Bureau, in July, the shipment of goods by China Vietnam trains originating from Guangxi exceeded 1922 TEUs, breaking the record for the highest monthly shipment volume for the third time this year. As of July 31st, a total of 6850 TEUs have been sent this year, a year-on-year increase of 16 times, creating a new "fast lane" for promoting economic and trade exchanges between China and Vietnam.

Last year, before the launch of the China Vietnam express customs clearance train, it was only one to two trains per week. Now, it runs almost every day, and during peak hours, it only runs three trains in a day. The transportation demand is particularly strong, "Zhang Jun, deputy manager of the Nanning South Business Department of the Nanning Railway Logistics Center, told reporters.

Trade interconnection, transportation comes first. The hot cross-border trade between China and Vietnam cannot be separated from strong transportation support. On November 28, 2017, the cross-border container train from Nanning South Station in Guangxi to Anyuan Station in Hanoi, Vietnam, kicked off the operation of the China Vietnam train.

With the completion of the speed increase and renovation of the Nanning Pingxiang section of the Hunan Guangxi Railway, as well as the continuous optimization of railway transportation organization and the improvement of customs clearance efficiency, starting from June 2023, the railway department will operate the China Vietnam express clearance train every Tuesday, Thursday, and Saturday on a regular basis. It only takes 14 hours from Nanning South Station to Vietnam Anyuan Station, and the transportation time has increased by 70% compared to the initial opening, achieving same day departure, same day arrival, and same day customs clearance of goods.

Cross border logistics transportation, safety and stability are the primary factors that customers consider. The China Vietnam train departing from Guangxi operates on a scheduled, fixed point, fixed train number, fixed route, and priced basis, with the characteristics of fast timeliness, punctuality, all-weather operation, stability, and predictability, providing customers with a safe and efficient experience. This also has a positive effect on easing the pressure of cross-border transportation at highway ports and opening up new channels for cross-border cargo transportation between China and Vietnam.

Data shows that in the first half of this year, the number of inbound and outbound vehicles at Guangxi's highway ports reached 736000, a year-on-year increase of about 49%, setting a new high for the same period in Guangxi's highway ports. Yang Bo, the Logistics Director of Guangxi Bangda Tianyuan International Freight Co., Ltd., introduced that from March to April this year, the company sent nearly 900 containers of power tower accessories from Nanning to Vietnam's Anyuan Station. These are engineering project goods that require bulk delivery and bulk customs clearance. However, due to the continued popularity of cross-border cargo transportation between China and Vietnam, the passage of cars at highway ports is sometimes slow, and the road conditions are unpredictable, making it difficult to ensure transportation timeliness. After comprehensive consideration, they chose the China Vietnam train and successfully completed the transportation task.

The cost of cross-border logistics is an undeniable factor in international trade. According to estimates, the cost of road transportation in China ranges from 0.2 yuan/ton kilometer to 0.4 yuan/ton kilometer, while the cost of railway transportation is about 0.15 yuan/ton kilometer. For every 1 percentage point increase in railway freight volume, the cost of transporting animals can be reduced by 0.2 to 0.5 percentage points. The cost advantage of the China Vietnam train is even greater. The State Railway Nanning Bureau coordinated with the Yongzhou Customs supervision site to jointly reduce the operating fees, short haul fees, storage fees, and other expenses in the enterprise customs operation area. With the support of various policies, the current fixed price station to station freight for the China Vietnam train from Nanning South Station to Anyuan Station is 1150 yuan/40 foot box, which has significant advantages compared to other transportation methods.

Huang Hongjun, Business Manager of Guangxi Tiejie Logistics Co., Ltd., believes that exporting goods to Vietnam through China Vietnam trains reduces overall transportation costs, enhances product competitiveness, and provides more opportunities for expanding overseas markets.

The data shows that efficient, affordable, and convenient China Vietnam trains have gained market recognition. In the past five years, the types of goods exported and imported by China Vietnam freight trains have increased from 116 and 14 in 2019 to 364 and 180 currently. The China Vietnam freight train has covered more than 20 cities in Guangxi and surrounding provinces, and cross-border freight transportation covers multiple ASEAN countries such as Vietnam, Laos, and Thailand.

The China Vietnam freight train is like a magnet with strong attraction, gathering goods from all over the country to Vietnam together, highlighting Nanning's position as a hub for goods distribution in ASEAN. Electronic products from Wuzhou, tempered glass from Beihai, beverages from Guilin, and other goods from Guangxi region, as well as chemical products, electronic products, daily necessities, and other goods from Southwest, Central, East, and South China, are gathered in Nanning and sent to Vietnam through the China Vietnam train.
In the long run, the bilateral trade scale between China and Vietnam will further expand. Experts suggest that the railway department should leverage the advantages of the Nanning railway hub, connect the railway train operation network inside and outside the area, achieve seamless connection between China Vietnam trains and China Europe trains, as well as the railway sea intermodal trains of the Western Land Sea New Corridor, gradually form a convenient and efficient network logistics channel of "train+train", promote the extension of China Vietnam trains from "one line" to "one network", and provide stronger transportation support for promoting economic and trade exchanges between China and Vietnam. (Economic Daily reporter, Tong Zheng)