10:10 | 12/01/2014 Trade
(VEN) - Chinese-Vietnamese trade and investment cooperation has rapidly developed in recent years. China remained one of Vietnam’s major markets in terms of exports and was Vietnam’s biggest overall commercial partner in 2013.
The China-ASEAN Expo (CAEXPO 2013)
The two countries reached bilateral trade turnover of US$2.5 billion in 2001, exceeding the target of US$2 billion set out in 2000, contributing to creating a good premise for trade relations between the two countries.
The two countries agreed to set out trade turnover of US$5 billion by 2005. However, until 2004, bilateral trade turnover between the two countries reached US$7.2 billion. China became Vietnam’s biggest commercial partner since 2004. Together with a strong growth, the two countries set out the target of US$20 billion in trade turnover by 2010. However, this figure reached totaled US$20.18 billion in 2008.
A new commitment of US$60 billion in trade turnover between the two countries was set out. The two countries promise to reach its target soon as Vietnam and China are active members of the ASEAN Free Trade Area. The two countries adopted new policies to promote trade relations, such as the agreement on the establishment of a trade promotion office in each country, the Memorandum of Understanding on the construction of economic zones crossing Chinese-Vietnamese border and the Memorandum of Understanding on the establishment of joint working groups to support for projects.
Trade promotion programs
Vietnam mainly imports from China, leading to a high trade deficit. Many raw materials are imported from China due to short distance, suitable prices and quality. Therefore, to narrow trade deficit with China, Vietnam needs to promote exports.
To promote exports in the Chinese market, in 2013, Vietnam organized trade promotion programs in accordance with the two countries’ guidelines and policies. Trade promotion programs are one of highlights to stimulate trade relations between the two countries.
Trade promotion programs in the Chinese market always occupied a leading position in the National Trade Promotion Program in 2013. Vietnam participated in the 10th China-ASEAN Expo (CAEXPO 2013) at the Nanning International Convention and Exhibition Center (NICEC). In addition, at the exhibition, Vietnam introduced Quy Nhon and Binh Dinh provinces as the most beautiful destinations, contributing to promoting tourism. Moreover, dozens of Vietnamese businesses participated in the China Import and Export Fair (Canton Fair) in Guangzhou. In particular, border fairs were organized in 2013 in Quang Ninh, Lang Son and Lao Cai provinces.
Vietnamese businesses also introduced high quality goods at Chinese fairs. Through fairs and exhibitions, contracts and memoranda of understanding were signed. At CAEXPO 2013, Vietnam signed a contract worth US$120 million. In addition, at Canton Fair 2013, the Royal Company, the 3H Company and the Hanh Thong Co., Ltd. signed contracts to export 395,000 tonnes of cinnamon, 15 containers of rattan and rushes, and 15,000 tonnes of tea per month to the Chinese market.
Trade promotion organizations in Vietnam also supported Chinese businesses in market research and attending international fairs held in Vietnam. The Vietnam Trade Office in Beijing with branches in Kunming, Guangzhou and Nanning made great efforts to support trade promotion activities in China in 2013.
The Vietnam Trade Promotion Agency (Vietrade) organized a seminar on the Vietnamese market and the potential for agricultural exports to China.