China-Vietnam economic, trade cooperation benefits two peoples

This year marks the 15th anniversary of the establishment of the China-Vietnam comprehensive strategic cooperative partnership.

The two sides on Tuesday announced a new positioning of relations between the two parties and countries and agreed to build a China-Vietnam community with a shared future that carries strategic significance on the basis of deepening the comprehensive strategic cooperative partnership between the two sides. The announcement was made during the state visit to Vietnam by Xi Jinping, general secretary of the Communist Party of China (CPC) Central Committee and Chinese president.

Freight vehicles line up to pass through Hekou Port, the largest port in the Yunnan section of the China-Vietnam border. (Photo/Zhu Haiya'nan)

As good neighbors, good friends, good comrades and good partners, China and Vietnam have accelerated synergizing the Belt and Road Initiative (BRI) and the Two Corridors and One Economic Circle strategy.

The two countries have leveraged the connectivity conditions to ensure the stability and smooth flows of industrial and supply chains. They have constantly strengthened economic, trade and investment cooperation and promoted the high-quality development of their economic and trade relations, thereby better benefiting the well-being of their peoples and achieving fruitful outcomes in economic and trade cooperation.

Early in the morning, a long line of trucks carrying Vietnamese durians slowly made their way to Hekou Port, the largest port in the Yunnan section of the China-Vietnam border. After customs clearance, the durians embarked on their journey into the Chinese market.

In July 2022, China's General Administration of Customs granted permission for qualified Vietnamese fresh durians to enter the Chinese market. This decision has led to a significant increase in Vietnam's durian exports to China, bringing profitable opportunities to Vietnamese fruit farmers.

The fruit trade between China and Vietnam extends from durians to dragon fruits, bananas, rambutans, watermelons, and more.

According to data from Vietnam's Ministry of Agriculture and Rural Development, Vietnam's fruit and vegetable exports to China reached $2.75 billion in the first nine months of 2023, up 160 percent year-on-year. These exports accounted for 65 percent of Vietnam's total fruit and vegetable exports in the same period.

In recent years, bilateral trade between China and Vietnam has witnessed rapid growth. The trade volume between the two countries surged from over $2.4 billion in 2000 to more than $234.9 billion in 2022. China has remained Vietnam's largest trading partner for many consecutive years, and Vietnam is China's biggest trading partner in ASEAN and the fourth largest globally.

China and Vietnam have been actively seeking opportunities for mutually beneficial cooperation through various economic and trade platforms.

Vietnamese durians are sorted and packed for shipment to China. (Photo/Zhu Haiya'nan)

In November 2023, Vietnam participated in the 6th China International Import Expo (CIIE) as one of the guest countries of honor, showcasing products such as coffee, durians, rice, dried fruits, and handicrafts.

According to statistics, Vietnam's exhibition booth has attracted tens of thousands of representatives from Chinese and foreign companies at each edition of the CIIE, seeing the turnover of exhibits exceeding $50 million.

In recent years, Chinese companies have significantly increased their investment in Vietnam, with their share in foreign investments received by Vietnam growing annually. The investment cooperation between China and Vietnam has yielded remarkable results.

From January to October 2023, Chinese companies directly invested $1.76 billion in various industries in Vietnam. The quality of investment has been notably improving, aligning with Vietnam's economic transformation and upgrading needs.

Investments in high-tech, information communication, new energy, green development, e-commerce, and logistics sectors have substantially increased, seeing enormous potential.

In Hanoi, capital of Vietnam, a green light rail train ran through high-rise buildings and residential areas, taking only 23 minutes for the whole distance of 13 kilometers. Built by a Chinese company, this light rail project not only saves travel time for local residents with a green travel experience, but also drives Hanoi's economic development.

The Chinh Thang wind farm, located in Ninh Thuan in Vietnam's south-central region, is operated by a Chinese company. The wind farm can save approximately 43,400 tons of standard coal and reduce carbon dioxide emissions by 102,500 tons annually.

This not only alleviates the pressure on the power transmission lines connecting central and southern Vietnam but also contributes to local environmental protection.

A container shipping route between Yangluo Port in Wuhan, central China's Hubei province and Cat Lai Port in Vietnam commences operations on Nov. 15, 2023. (People's Daily Online/Zhao Jun)

According to incomplete statistics, Chinese-funded enterprises have invested in or constructed nearly 70 wind power projects in Vietnam, injecting momentum into Vietnam's green and low-carbon development.

In November 2022, China and Vietnam issued a joint statement on further strengthening and deepening the comprehensive strategic cooperative partnership.

According to the statement, the two countries agreed to actively explore exchanges and cooperation in green development, climate change response, the digital economy and other areas. This aims to create more growth points for China-Vietnam cooperation.

Xu Liping, a researcher with the National Institute of International Strategy at the Chinese Academy of Social Sciences, noted that China has experience, talent, and technological advantages in industrial transformation and upgrading, and that China and Vietnam can carry out fruitful cooperation in fields such as information communication, artificial intelligence (AI), and the Internet of Things (IoT).

Currently, many Chinese-funded enterprises are investing in clean energy projects in Vietnam. The two countries have vast potential for green cooperation, which will not only help meet the electricity demand faced by Vietnam's development, but also contribute to jointly addressing climate change and achieving sustainable development.

In recent years, while following the principles of extensive consultation, joint contribution, and shared benefits, China and Vietnam have fully leveraged their geographical proximity and complementary industrial advantages to accelerate the synergy between the BRI and the Two Corridors and One Economic Circle strategy. They have focused on promoting cooperation in strategic areas such as connectivity.

China and Vietnam are firmly committed to upholding the multilateral trading system. They have strengthened coordination through platforms such as the World Trade Organization and the Asia-Pacific Economic Cooperation.

The two countries have jointly driven the implementation of the Regional Comprehensive Economic Partnership and advanced the development of Version 3.0 China-ASEAN Free Trade Area. Their cooperation in East Asia and under the framework of the Lancang-Mekong Cooperation is deepening, while regional multilateral cooperation is steadily advancing.