More Cooperation Opportunities for Vietnamese, Chinese Mechanical Companies

A group of 20 Chinese companies operating in the fields of engineering, machinery, designing, importing, exporting and real estate met with Vietnamese businesses at a seminar on “Cooperation for mechanical and machinery companies in Vietnam and China” recently held in Hanoi by the Vietnam Chamber of Commerce and Industry (VCCI) and the Research Institute of China Business Associations Union. The meeting opened up the opportunity for businesses of the two countries to survey the market and seek future business cooperation.

 

Mr Pham Quang Thinh, Deputy Director of VCCI International Relations Department, said: Vietnam and China are two long-lasting friendly neighbours. With the joint efforts from the two sides, their comprehensive strategic partnership has entered a new era of all-rounded development.

 

According to statistics, the two-way trade between Vietnam and China grew up 32 % per year on average from 2000 to 2010. In 2009, in spite of negative impacts from the global financial crisis and world economic recession, the bilateral trade revenue reached US$21.35 billion, up 5.04 % from 2008. In the first nine months of 2010, the trade turnover amounted to US$20.6 billion, up 44.1 % over the same period of 2009. Particularly, China exported US$15.6 billion of goods to Vietnam and spent more than US$5 billion on goods from the neighbouring nation.

 

Currently, China has 743 valid investment projects with a total registered capital of more than US$ 3 billion in Vietnam, ranking 15th out of 92 countries and territories with investment capital in the Southeast Asian nation. Most projects are successful.

 

But, according to Mr Thinh, these results are incommensurate with potentials and advantages as well as expectations of the two governments and two peoples.

Specifically, the year 2010 marked an important milestone in the bilateral friendly relationship as the two countries celebrated the 60^th anniversary of diplomatic relations and hosted the first "Vietnam - China Friendship Year."

 

Also, this year, with the enactment of the ASEAN - China Free Trade Area (ACFTA), taxes on goods - both agricultural and industrial goods - between China and ASEAN nations will be slashed to 0-5 %. Therefore, the two sides should take opportunity to broaden trade, investment and joint venture cooperation. This brings in practical benefits for enterprises of both countries on the one hand and contributes to the joint prosperity of Vietnam and China on the other.

 

Currently, the demand for mechanical products and construction machines in Vietnam is increasing.

 

Mr Nguyen Van Thu, Chairman of the Vietnam Association of Mechanical Industry, said: In recent years, the Vietnamese Government has attached much importance to developing mechanical industry. Thus, the association expects Chinese companies will invest in machine manufacturing or cooperate with Vietnamese mechanical companies to bid for larger projects.

 

“Chinese companies should open centres to repair, replace and maintain products supplied to the Vietnamese market. This benefits both Vietnamese and Chinese enterprises because the Chinese can maintain machines exported to Vietnam, making Vietnamese consumers feel assured of using Chinese products,” Thu noted.

According to Mr Thu, the Chinese mechanical industry is being developed towards modern production. "Hopefully, modern machines and equipment will be exported to Vietnam and the Association is ready to search and create all favourable conditions for enterprises of the two countries to cooperate," said Thu.

 

Mr Li Duwen, President of Liuxian Shanxi Group Ltd (China) - one of leading real estate, housing construction and civil engineering companies, said: Chinese companies want to collaborate with Vietnamese partners for the joint development of the two countries.