ECONOMIC and trade relations between Vietnam and China have been developing in a positive direction, as shown by the continuous increase of bilateral trade turnover between the two countries. Vietnam is fast becoming an attractive investment destination for Chinese enterprises.
According to the Foreign Investment Agency under the Ministry of Planning and Investment, China invested about $1.6 billion in Vietnam in the first four months of this year, making it the country’s fourth largest source of foreign investment.
Several large projects were funded by Chinese investors in the period including a tire manufacturing project with total registered capital of $280 million in the southern province of Tay Ninh and another tire project of Advance Tire (Vietnam) Co Ltd with registered capital of $214.4 million in the southern province of Tien Giang.
China has been Vietnam’s biggest trade partner since 2004, and bilateral trade has been continuing its strong growth. China is currently Vietnam’s second largest export market after the US. Vietnam is also China’s largest trading partner in Asean and its eighth largest in the world. It is China’s fifth largest export market and ninth largest import market.
Exports to the Chinese market
According to the Ministry of Industry and Trade, Vietnam-China trade turnover reached $106.7 billion last year, up 13.5 per cent compared to 2017. Vietnam exported goods worth $41.26 billion, up 16.56 per cent, while imports reached $65.43 billion, up 11.68 per cent.
Vietnam National Garment and Textile Group (Vinatex) executive director Cao Huu Hieu said one of the bright points contributing to the growth of Vietnam’s textile and garment industry was businesses’ efforts to boost exports to the Chinese market.
Hieu said Vietnam’s garment and textile export turnover to the Chinese market increased by 24 per cent from $3.2 billion in 2017 to $4.1 billion last year. Yarn was the product most exported to China, making up 48 per cent of all textiles.
However, Hieu said many Vietnamese enterprises, including textile firms, face difficulties when attempting to export goods to China.
“The production scale of Vietnamese enterprises is relatively small, leading to a limitation on competitiveness of export goods,” Hieu said. “In addition, some enterprises have not actively explored consumption habits, market information or quality standards and quarantine testing in China.” VIET NAM NEWS/ANN