China and Vietnam tighten their economic and trade cooperation ties

Our reporter Liu Xu

In recent years, China and Vietnam have signed multiple trade and economic cooperation agreements, continuously expanded agricultural trade, and promoted regional development through interconnectivity... China and Vietnam are tightening the bond of economic and trade cooperation between the two sides, and cooperation and exchanges are becoming increasingly close. The economic and trade exchanges between the two countries have shown great potential.

Expand agricultural product trade

Vietnamese frozen durian is waiting for official export to China. In the first half of this year, durian continued to be the strongest commodity exported by Vietnam to China, with over 90% being fresh durian. The investment in frozen durian production factories is much higher than that in fresh packaged durian warehouses, so the number of participating companies will be fewer, and the competition will be relatively less intense than that of fresh durian. At present, the Chinese market is developing various products made from durian, which require a large amount of raw materials. However, frozen durian has a shelf life of up to 2 years, making the frozen durian market more stable than fresh durian.

Another fruit that is preparing to enter the Chinese market is coconut. According to reports from Vietnamese media, China and Vietnam have agreed to complete the process of signing the Protocol on Phytosanitary Requirements for Fresh Coconuts Exported from Vietnam to China. At present, Vietnamese coconuts are exported to 90 countries and regions, and the export value of peeled fresh coconuts and processed products from Vietnam will reach 243 million US dollars in 2023. Deng Fuyuan, Secretary General of the Vietnam Fruit and Vegetable Association, stated that the official quota export agreement between Vietnam and China will bring huge opportunities to the coconut industry in Vietnam. Due to its close geographical location, short transportation time, and low cost, Vietnamese coconuts have certain competitiveness in the Chinese market.

More and more Vietnamese fruit and vegetable products are being exported to China, and economic exchanges between China and Vietnam are constantly deepening and solidifying. Statistics show that in the first half of the year, the bilateral trade volume between China and Vietnam rebounded strongly, reaching nearly 95 billion US dollars; Vietnam's imports from China reached 67 billion US dollars, a year-on-year increase of 35%; Vietnam's exports to China have steadily increased to $27.8 billion, a year-on-year growth of 5.3%.

From fruits to processed foods, Vietnamese agricultural products are establishing themselves in the Chinese market. In the future, China and Vietnam will strengthen full industry chain cooperation in agricultural trade, investment, and agricultural technology cooperation, and China Vietnam agricultural cooperation will reach a new level.

Enhance the vitality of regional cooperation

China and Vietnam have signed bilateral and multilateral agreements, including the ASEAN China Free Trade Agreement (ACFTA) and the Regional Comprehensive Economic Partnership (RCEP). With the help of multilateral trade agreements such as ACFTA and RCEP, the trade volume between the two countries is expected to continue to grow in the coming years, especially in the fields of agricultural products, textiles, and electronics.

The agreement signed by China and Vietnam has greatly promoted the strategic alignment between China's "the Belt and Road" initiative and Vietnam's "two corridors and one circle" planning. In the future, the two countries will strengthen cooperation within a multilateral framework to achieve their respective economic development goals, promote regional economic integration, and enhance the economic vitality and global competitiveness of the entire Southeast Asian region.

In terms of connectivity, in July 2023, the international freight train from Shijiazhuang, China to Hanoi, Vietnam was launched, with a total transportation distance of over 2700 kilometers. In the future, the two countries will accelerate the construction of interconnection and provide more convenient channels for economic and trade cooperation between the two countries and the region.

The highlights of China Vietnam economic and trade cooperation are diverse. The number of Chinese enterprises investing in Vietnam has been increasing year by year. In the first half of the year, Vietnam attracted investment from 84 countries and regions. Among them, China ranked first in the number of new investment projects, accounting for 29.1% of Vietnam's total foreign investment projects in the first half of the year. This data reflects that China's economic investment activities in Vietnam have become an important force in promoting the development of bilateral relations; In terms of tourism, the number of Chinese tourists visiting Vietnam in the first three months of this year reached nearly 890000, an increase of 634.5% compared to the same period last year; In terms of people to people exchanges, as of now, 60 provinces and cities in Vietnam have established friendly and cooperative relations with China.

With the deepening cooperation between the two countries in various aspects such as industrial chain, supply chain, and standardization, the economic and trade cooperation between China and Vietnam will usher in a better future.