Vietnam-China trade to reach US$10 BLN by 2007
HANOI - Vietnam-China trade, which reached a record US$7.2 billion last year, is likely to reach $10 billion by 2007, three years ahead of the schedule set by Prime Minister Phan Van Khai and Premier Wen Jiabao at a meeting in Beijing in May 2004. Trade with an amazing annual growth rate of 40 per cent in recent years has emerged as a bright spot in bilateral relations, thanks to many advantages, including the shared 1,643 km land border, and mutual access to the Gulf of Tonkin, as well as similar customs and spending habits of the population.
Since the resumption of Vietnam-China economic relations in 1991, even though world trade has been declining, the two countries have seen stable and rapid growth in trade, from $32 million in 1991 to nearly $2.5 billion in 2000 and nearly $7.2 billion in 2004.
Vietnam exports in great volumes of crude oil, coal, coffee, sea products, fruits and vegetables, and footwear to China, while China has registered large increases in the export of pharmaceutical products, machinery and equipment, petroleum, fertilisers and motorbike parts and cars to Vietnam.
The quality of Vietnam's export goods, especially footwear, fruits and vegetables, and sea food, have improved remarkedly, gaining larger shares in the Chinese market. Meanwhile, the import of consumer goods is decreasing, giving way to industrial materials and transport facilities.
Cross-border trade, which has been posing problems for the authorities for years due to the long border line, is now gradually being put into order. In addition, official trading channels have been increasing, adding more kinds of goods that previously were only traded in small volumes.
A more open payment mechanism at the branches of the two countries' banks in the border area has initially encouraged businesses to pay through banking services, thus reducing risks and disputes in cross-border trade.
Bilateral trade relations are also expanding in scale, with more Chinese businesses from in-land and coastal provinces reaching out to Vietnam, and Vietnamese businesses also looking beyond the border line to China's coastal provinces and economic zones.
The two sides' businesses also shifted from trade to forming joint-ventures to manufacture and sell products in the two countries and also export to third countries.
The boost in economic and trade ties is attributed to hundreds of talks and meetings between the two countries' enterprises concerning policies, market information and trade opportunities, as well as a great number of product exhibitions held in the two countries, especially in common border provinces.
Noteworthy was the Vietnam-China Business Forum established in July 2004 for both countries' businesses to voice their differences and present their complaints to relevant agencies for settlement. An e-transaction gate has also been set up for the two business communities to share information and experiences.
At present, China is the second biggest trading partner of Vietnam after the European Union (EU). It is the fourth largest buyer of Vietnam's goods and the biggest seller to Vietnam. Yet the value of two-way trade accounts for just 12 per cent of Vietnam's total trade turnover, and represents only 0.6 per cent of China's.
The Vietnam Chamber of Commerce and Industry (VCCI) suggested that to further boost bilateral trade, both countries' businesses should look to long-term contracts on supplying products of their strength not only to their countries but also to a third country.
As the two countries share many similarities, Vietnam and China should increase discourse concerning anti-dumping of goods, combating counterfeit products and dealing with technical barriers in international trade, said the VCCI.
According to VCCI Vice President Hoang Van Dung, in the up-coming visit to China, President Tran Duc Luong will be accompanied by 80 leading entrepreneurs, who hope to further economic ties with their Chinese partners.
On the sidelines of the meetings between President Luong and Chinese leaders, the VCCI will collaborate with the Chinese Council for the Promotion of International Trade and its branches in Shaanxi and Guangxi provinces to organise business meetings in Beijing, Xian and Guangxi.
The event promises to open up many opportunities for the two countries in economic and trade cooperation.
Vietnam News Agency - July 15, 2005.
Economic corridor advances Vietnam-China cooperation
HANOI - An economic corridor linking the southwestern Yunnan province of China with Vietnam's northern provinces and cities will be an impetus to develop the multifaceted cooperation between the two countries. The corridor, running from Kunming city of Yunnan province through Vietnam's Lao Cai province, Hanoi capital city, Hai Phong port city, to Quang Ninh province, is one of three economic projects to be established under an agreement reached by Vietnamese Prime Minister Phan Van Khai and Chinese Premier Wen Jiabao at their meeting in Beijing last May. Another economic corridor will connect Nanning of Guangxi province, Lang Son province, Ha Noi, Hai Phong city and Quang Ninh province, while an economic belt will encompass the Tonkin Gulf.
While the common purpose of these projects is to strengthen infrastructure and transport links between China and Vietnam's northern localities, the Kunming-Lao Cai-Hanoi-Hai Phong-Quang Ninh has been given priority because of its important role in the two countries' economic plans.
It will help implement Vietnam's policies on pushing socio-economic development in its northern mountainous provinces, which is considered as the country's major target for the 2001-10 period.
The corridor will also assist China in carrying out its strategy to "open up" the west - an important part of the country's overall economic development plan.
According to Dr. Nguyen Van Lich, Director of the Trade Economy Institute under the Vietnamese Trade Ministry, the corridor will become even more important once the ASEAN-China Free Trade Area is formed. The corridor also serves the two countries' integration strategy as they are members of the ASEAN-China Comprehensive Economic Cooperation Agreement, and are implementing the Early Harvest Programme.
The building of the corridor involves developing trade and economic ties, investment, technical cooperation, tourism, cross-border economic exchange, and land, railway and water transportation.
The two countries agreed to focus first on transport infrastructure, not only to meet the increasing demands of trade between the two countries but also to serve the transit needs of China and ASEAN member countries. Railways and roads connecting Kunming with Lao Cai, Hanoi and Hai Phong will be upgraded and a new highway linking Kunming to Lao Cai, Hanoi, Hai Phong and Quang Ninh will be built, followed by a trans-Asia railway line.
Regarding trade cooperation, the two sides are coordinating to promote cross-border trade and transit trade. Yunnan province's key export staples are electro-mechanical products, telecommunications equipment and chemicals, while Vietnam mainly exports agro-forestry-aquatic products and minerals.
Tourism in the corridor also has great potential, as the area boasts many famous landscapes from the mountains to the sea. The two sides hope to attract tourists from Europe, the Chinese mainland and Vietnam, with tours highlighting the two countries' original cultural and ecological features.
The Kunming-Lao Cai-Hanoi-Hai Phong-Quang Ninh economic corridor will create favourable conditions for concerned localities to expand their import-export markets, reduce intermediate costs, and improve the competitiveness of their commodities and services.
Vietnam News Agency - July 15, 2005.
Vietnam to foster relations with China : Vietnamese FM
"Vietnam's Party and State will continue to develop their consistent friendship and comprehensive cooperation with China on the basis of mutual trust," said Vietnamese Foreign Minister Nguyen Dy Nien.
During the upcoming visit of Vietnamese State President Tran Duc Luong to China, the two sides will work out key directions and specific measures to effectively develop their cooperation, especially in the fields of politics, economy, culture, science, technology, security and defense, local newspaper Vietnam News on Friday quoted Nien as saying.
They will also sign some economic and trade agreements, issue a declaration on concluding the bilateral negotiations for Vietnam to join the World Trade Organization, and discuss a series of bilateral matters, as well as regional and international issues of mutual concern, he added.
The visit, slated for July 18-22, is an evidence of the meeting tradition of high- ranking leaders of Vietnam and China, which helps boost the relations between the two parties and two states to a higher level, particularly in the fields of economics, trade and investment for the two peoples' benefit, peace, stability and cooperation in the region and the world, Nien said.
Mentioning relations between China and the Association of Southeast Asian Nations (ASEAN), the foreign minister said Vietnam has helped boost China-ASEAN trade ties, contributing to the development and wealth in the region.
The trade turnover between Vietnam and China is expected to exceed 10 billion US dollars in 2010, Nien said. The turnover, which stood at 6.74 billion dollars in 2004, was more than 3.2 billion dollars, in the first quarter of this year.
Xinhuanet - July 15, 2005.
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