Vietnam, China Target Annual Trade Value of US$20Bln by 2015: Deputy Trade Minister

Vietnam and China are trying their utmost to boost business and investment cooperation with the aim of recording an annual trade turnover of US$20 billion by 2015, remarked Vietnamese Deputy Trade Minister Phan The Rue at a seminar on trade and investment chances in doing business with China held by Vietnam Chamber of Commerce and Industry on March 24 in Quang Ninh province.

 

The seminar provided general information of business relations, investment and trade opportunities, experience in cooperation and infrastructure development subject to the “two corridors – one economic belt” orientation of the two governments. Leaders of the Ministry of Trade and VCCI, economic and commercial counselor of the Chinese Embassy to Vietnam, and representatives of more than 100 Vietnamese and Chinese enterprises attended the event.

 

The meeting was also part of VCCI’s orientation in boosting the two countries’ economic and trade relations in international integration and further connecting VCCI activities with localities and enterprises, according to Doan Duy Khuong Ph.D, VCCI Vice President.

 

Bilateral trade between the two countries in recent years has seen an impressive growth and China is still the number-one trade partner of Vietnam, Mr. Rue affirmed. It ranks first in terms of Vietnam’s imports and third of Vietnam’s exports, after the US and Japan. Vietnam’s customs statistics show that the trade value in 2005 topped at US$8.83 billion, up 21.52 per cent over 2004, including US$2.96 billion in exports from Vietnam, up 8.24 per cent, and US$5.77 billion in imports, up 29.68 per cent.

 

The deputy trade minister estimated this year’s trade turnover of US$10.2 billion, up 10.4 per cent over the previous year and early surpassing the target of US$10 billion by 2010 set by the two countries’ Prime Ministers.   

 

Enterprises of the two sides showed difficulties in the bilateral trade activities, including poor road and warehouse systems, a less-effective legal framework, lack of market information, and cumbersome procedures of state authorities. These hindrances result in time consuming processes and higher business costs. Mr. Rue proposed at the seminar that the two countries should further cooperate in the coming time to help Vietnamese and Chinese goods meet consumers’ demands of each other.

 

He stressed that the important role of the Vietnam-China border gate trade will still keep on rising. More than US$3 billion of the total trade turnover of US$8.83 billion in 2005 came from border gate trade exchanges.     

 

Vietnam’s major exports to China are crude oil, rubber, coal, agricultural and aquacultural products, computer parts, electronic products, furniture, footwear, tea, coffee, and cables. China has a large demand for seafood, however, the Vietnamese products have not yet been fully tapped. Biggest shipments from China to Vietnam are oil and gasoline, clothes and fiber, garment and textile materials, machinery, steel and metal, computer and electronic parts, fertilizers, chemicals, and motorbike and automobile parts.

 

Under the initiative of Prime Minister Phan Van Khai on the visit to China in May 2004, MPI and Chinese Trade Ministry in March 2005 have reached a consensus on basic orientations of the “Two corridors – one economic belt” development cooperation between the two countries, and the two ministries are trying to sign the agreement in the second quarter of this year.

 

The agreement will focus on the development cooperation fields of transport, border gate trade and economy, tourism, agriculture and forestry, industry, aqualculture and sea economy, culture, science and technology, and environment. To attract investment for the economic belt’s infrastructure development, the two governments should conduct activities to call for capital to develop border gate economic zones.

 

Trans-national roads expected to meet expressway standards to reduce travel time between border gate provinces include the Hai Phong-Hanoi-Lao Cai-Hekou-Kunming expressway, planned to be built in 2007-2010, Hai Phong-Hanoi-Lang Son-Nanning expressway, planned to be built in 2009-2012, and Noi Bai-Hai Phong-Ha Long-Mong Cai-Hainan expressway, planned to be built after 2010.

 

The governments of Vietnam and China need to implement the “Agreement on Exchange of Goods”, attempt to sign the “Agreement on Exchange of Service” in the China-ASEAN Free Trade Area (CAFTA), speed up the progress of “Two corridors – one economic belt” programme, and try to make Vietnam-China trade and economic cooperation a typical model in CAFTA, creating a favourable environment for enterprises of the two countries to cooperate.

 

The enterprises should understand and strictly apply CAFTA principles, set up strategies for a long-term cooperation, continuously improve propaganda and effectively invest in the markets of their partners. Vietnamese companies are urged to pay more visits to China to call for investment in Vietnam and Chinese ones should regard investment in Vietnam as key area outside China.

 

 

Despite the poor transport infrastructure from Lao Cai province to Chinese neighboring provinces, Vietnamese and Chinese enterprises are interested in trading, transporting goods, and traveling via Con Minh-Hai Phong route, including roads and railway. More than 400 enterprises at present are trading through Lao Cai border gate and the bilateral trade via Lao Cai-Hekou international border gate is relatively high and stable, reaching US$430 million in 2005 from US$118 million in 2000.   

 

With the awareness of the important role of the Lao Cai-Hekou international border gate under the Kunming-Lao Cai-Hanoi-Hai Phong Corridor, CAFTA, and Greater Mekong Sub-region, Lao Cai province has in recent years tried its utmost to create the most favourable business environment for cities, provinces, and enterprises of Vietnam and ASEAN to trade with Yunnan and western provinces of China via Lao Cai border gate.