In terms of trade relationship, Vietnam mostly acts as supplier of materials and raw farm produce to China, of which intermediate goods (minerals, rubber, fiber) account for 51.5 percent and consumer goods (vegetable and fruits, seafood, rice, cassava) 22.4 percent.

In recent years, farm exports to the Chinese market have accounted for 28.16 percent of Vietnam’s total farm exports on average.

Meanwhile, industrial products, especially machinery, equipment, spare parts; phones of different types and accessories; computers, electronics and electronic components; steel and petroleum, account for a large proportion of total import turnover. 

China has always been the leading supplier of machines and equipment to Vietnam for many years. Vietnam and China’s trade have complemented each other. Vietnam sells tropical farm produce, seafood, textiles and garments and industrial products to China, while it imports materials for domestic production and farm produce.

There are many factors that help the relationship of the two countries develop. The two countries are not only close neighbors, but also have favorable investment environment.

In the first 10 months of 2023, China’s investment reached $2.5 billion with 555 registered projects, becoming the fourth largest foreign direct investors in Vietnam. As of October 20, 2023, China was the sixth largest investor out of 143 foreign investors in Vietnam with 4,105 valid projects, capitalized at $26.5 billion in total.

Since the beginning of the year, many Chinese businesses, especially large corporations capable of joining the global supply chain, have been carrying out surveys to seek investment opportunities in the northern provinces of Vietnam. 

Vietnam is one of the attractive destinations for Chinese investors thanks to the advantageous geographical position, reasonable labor and logistics costs, political and social security and free trade agreements (FTAs) of which Vietnam is a signatory.

The investment cooperation between Vietnam and China in the fields of green development and digital economy has been developing, becoming the new driving force for the investment cooperation between the two countries. 

The two sides have been actively deploying RCEP (the Regional Comprehensive Economic Partnership) and promoting the establishment of the ASEAN-China Free Trade Area 3.0 version.

China, with its huge population and 400 million middle-class people, have high demand which makes it a very attractive export market for many countries, including Vietnam.

Vietnam, which has been more deeply integrating into the world, is a member of many FTAs, has favorable conditions to promote trade. Vietnam has become a good market for Chinese goods because of similar economic conditions, consumer culture and low transport costs.

Vietnamese Minister of Industry and Trade Nguyen Hong Dien believes that import-export demand will continue to increase sharply and the goods customs clearance at the Vietnam-China border gates will remain stable with high clearance performance.

Meanwhile, political and diplomatic relations between Vietnam and China have been consolidated, thus creating favorable conditions for activities between the ministries, branches and localities of the two countries.

The spokesman of the Chinese Ministry of Trade said 2023 is the year marking the 15th anniversary of the establishment of the Comprehensive Strategic Cooperative Partnership framework between Vietnam and China. 

China wants to expand trade cooperation and promote bilateral investment cooperation; continue to step up regional economic integration, support enterprises of the two countries to cooperate in strategic and emerging fields, such as digital economy, green development; and promote economic and trade relations. 

Both Vietnam and China have great economic development potential and are striving for sustainable and stable growth. Promoting trade activities is the wish of the leaders of the two countries to develop economic and diplomatic relations.

Following recent achievements, the two sides will continue to take full advantage of geographical proximity and mutual complementarity to sharpen the cooperation in many fields as shown in the Joint Statement released at the official visit to China by Vietnamese Party Committee Secretary General Nguyen Phu Trong in October 2022.

Tran Thuong