Chinese President Xi Jinping Visiting Vietnam

 

This is the first visit in the past 9 years by the highest level of Chinese Party and State to Vietnam. The visit took place in the context of enhancing Vietnam-China relations. With frequent meetings of top leaders, the two sides have achieved important common awareness on orientation and measures to promote bilateral stable and sound relations in the coming years.

 

The official visit of Chinese General Secretary and President Xi Jinping following the visit to China by General Secretary Nguyen Phu Trong and earlier by President Truong Tan Sang, have not only enhanced the mutual understanding but also means that the agreement between leaders of the two countries will guide the solutions of existing issues and map out the relationship.

 

Chinese General Secretary and President Xi Jinping expressed elationforhis State visit to Vietnam on the occasion of the 65^th anniversary of the establishment of diplomatic relations between the two countries, the 125^th anniversary of President Ho Chi Minh’s birthday, the 70^th anniversary of National Day and 40^th anniversary of the liberation of South Vietnam. President Xi Jinping highlighted: “After 65 years of diplomatic relations, China-Vietnam relations have been ever more prospering and developing. In the new century, the comprehensive strategic partnership between the two countries has been unceasingly deepened in the interest of the peoples of the two countries, contributing to peace, stability and prosperity of the region”.

 

Chinese President noted that last April, during the visit of General Secretary Nguyen Phu Trong to China, the two sides agreed to consolidate the traditional friendship between the two countries, intensify mutual political confidence, promote essential cooperation in all fields, expand people’s exchanges.

 

Chinese President reaffirmed that China highly values the traditional friendship between two countries, persisting in strategic height and long-term views and together with Vietnam looking to overall and long-term future, mutual respect, friendly negotiation, jointly promoting stable, sound and long-term comprehensive strategic partnership.

On the afternoon of November 5, 2015, General Secretary Nguyen Phu Trong led the official welcome to Chinese President Xi Jinping at the Presidential Palace, the highest ceremony for top leader.

 

Vietnamese President and Chinese President later held important talks at the office of the Party Central Committee. The two sides exchanged views on big issues of strategic nature between two countries with a view to promoting political, economic, cultural and commercial relations. The two sides also exchanged views on various issues including on the East Sea.

 

The talks were followed by the signing of a number of cooperation documents between Vietnam and China.

 

In the evening of November 5, General Secretary Nguyen Phu Trong and President Truong Tan Sang co-chaired a reception welcoming Chinese General Secretary and President Xi Jinping.

 

Chinese President also held talks with other leaders of Vietnam: President Truong Tan Sang, Prime Minister Nguyen Tan Dung and Chairman of National Assembly Nguyen Sinh Hung. Together with General Secretary Nguyen Phu Trong, Chinese President attended the 16th friendship meeting between Vietnam-China youth and personalities, laying a wreath and paying tribute at Ho Chi Minh mausoleum.

 

In 2011, Mr Xi Jinping visited Hanoi in capacity of Chinese Vice-President.

 

According to statistics, bilateral trade value between Vietnam and China in 2014 stood at nearly US$59 billion. China continues the biggest trade partner of Vietnam and Vietnam has become the second biggest trade partner of China among ASEAN members. Furthermore, Vietnam always runs a trade deficit with China. In the first 9 months of 2015, two-way trade value was some US$36.8 billion, 18.1 percent more than the same period last year, with 21.5 percent in machines and equipment, 18.8 percent in telephones, 12.6 percent in textile. Meanwhile Vietnamese export to China was only US$12.5 billion, up by 12.5 percent, including computers and parts (31.3 percent), yarn (17 percent), manioc and products (35.8 percent), rice (9 percent).

 

Consequently, the trade deficit in the 9 months was US$24.3 billion, up by 21.3 percent compared to the same period last year.

 

According to the General Statistics Office, the impact of exchange rate between China and Vietnam did not reflect in import-export in the last 9 months but may be in the 4^th quarter and trade deficit will increase higher.

 

 Mr Nguyen Tien Vi, Head of Planning Department, Ministry of Industry and Trade disclosed at a recent inter-ministerial meeting that the deficit with China in 2015 could be at US$35 billion.

 

Meanwhile experts believed that there are still areas to increase bilateral trade, bringing benefit to both sides. As forecast, Vietnam-China trade in 2017 could increase to US$100 billion. At the meeting of Vietnam-China Committee for Economic and Trade Cooperation, participants believed that the above-mentioned figure can be achieved, and besides efforts of the two governments, it is important that business communities of the two countries should upgrade their cooperation.

 

In disregard of trade, Chinese investment to Vietnam will increase sharply, especially when Vietnam concluded TPP negotiation and many more Chinese businesses will invest in Vietnam to benefit from TPP tariff preferential, especially in garment and footwear with high advantages.

 

China ranks 9^th among 101 countries and territories investing in Vietnam with registered capital of over US$7.9 billion in 2014 and over US$8.13 billion by June 20, 2015, making up 3.15 percent in total FDI registered in Vietnam.

 

Chinese FDI businesses invested in 31 Vietnamese industries, especially in oil, chemicals (62 companies), machinery (103 companies), and highest in whole sales and retail sales (124 companies).

 

Chinese businesses investing in Vietnam come from all cities and provinces of China with 37 central-level companies, a company of Chinese Trade Ministry and 774 companies of Chinese provinces. 

 

Chinese FDI present in 52 provinces and cities of Vietnam, focusing in most populous cities, industrial zones and border provinces with China. 

 

By 2014, localities with biggest Chinese FDI are Hanoi (202 projects), Ho Chi Minh City (110 projects), Binh Duong (100 projects). Chinese investors in Vietnam are mainly under wholly foreign investment, making up 49.8 percent. BOT, BT, BTO projects are only 3 projects but with big investment of some US$2.3 billion, equivalent of 29.7 percent of total investment. Meanwhile joint venture projects account for only 19.3 percent of total investment capital.

 

Chinese businesses make big investments in Vietnamese infrastructure and energy amounting to 90 percent of Vietnamese EPC projects including Cat Linh – Ha Dong elevated railways, Hanoi-Haiphong highway, Noi Bai-Lao Cai highway, Tay Nguyen Bauxite, etc. However, most of these projects are slow in implementation and most controversial in the use of machines and equipment as well as manpower.