Promoting trade in agricultural products between Vietnam and China
Vietnam and China have a long-standing trade relationship, and in recent years, agriculture has emerged as a significant area of cooperation. Both countries have complementary strengths in this sector, with Vietnam’s fertile land and abundant labor force, and China’s advanced technology and large market demand. The potential for collaboration is enormous, and there is a high expectation that Vietnam-China agricultural products will be in high demand in the coming years.
The two countries have established numerous cooperation programs, including joint ventures, research partnerships, and technology transfers, to develop high-quality products and meet the growing demand in the global market. The future of agricultural trade between Vietnam and China looks promising, with the potential for mutual benefits and economic growth.
Import and export activities between Vietnam and China in the past time
Vietnam and China have a long history of trade relations, with China being Vietnam’s largest trading partner. The two countries share a long land border, and Vietnam’s location on the South China Sea also facilitates trade with China.
Import and Export Activities
In 2020, Vietnam’s total trade with China was $133.09 billion, accounting for 28.4% of Vietnam’s total trade. Vietnam’s exports to China were worth $48.97 billion, while its imports from China were worth $84.12 billion. Vietnam’s trade deficit with China was $35.15 billion, accounting for 65.4% of Vietnam’s total trade deficit.
Vietnam mainly exports raw materials and products with low added value to China, such as agricultural products, minerals, and textiles. On the other hand, China exports high-value products to Vietnam, such as machinery, equipment, and electronics.
Main Trade Goods
Agricultural Products: Agricultural products are among the top exports from Vietnam to China. In 2020, Vietnam’s agricultural exports to China were worth $5.83 billion. Key agricultural exports include fruits, vegetables, rubber, and coffee. China is a major market for Vietnam’s fruit exports, with China accounting for more than half of Vietnam’s total fruit exports in recent years.
Minerals: Minerals are also among Vietnam’s top exports to China. In 2020, Vietnam’s mineral exports to China were worth $4.72 billion. Key mineral exports include coal, iron ore, and copper. Vietnam’s coal exports to China have been increasing in recent years, making up more than 90% of Vietnam’s total coal exports.
Textiles: Textiles are another significant export from Vietnam to China. In 2020, Vietnam’s textile exports to China were worth $4.21 billion. Vietnam’s textile industry has grown rapidly in recent years, with many Chinese textile companies moving production to Vietnam due to lower labor costs and favorable policies.
Machirery and Electronics: Machinery and electronics are major imports from China to Vietnam. In 2020, Vietnam’s imports of machinery and electronics from China were worth $45.26 billion, accounting for more than half of Vietnam’s total imports from China. Key imports include phones, computers, and other electronic devices.
Transportation Equipment: Transportation equipment is also a significant import from China to Vietnam. In 2020, Vietnam’s imports of transportation equipment from China were worth $7.87 billion. Key imports include cars, trucks, and motorcycles.
Vietnam-China trade relations have been growing in recent years, with China being Vietnam’s largest trading partner. Vietnam mainly exports raw materials and low-value products to China, while China exports high-value products to Vietnam. The two countries have complementary economies and are exploring new avenues for cooperation. While there are challenges in the trade relationship, including a significant trade deficit for Vietnam, the potential for collaboration is enormous. With a commitment to further enhance trade ties, the future looks bright for this bilateral relationship.
Promoting trade in agricultural products between Vietnam and China
Deputy Minister of Agriculture and Rural Development, Tran Thanh Nam, stated that Vietnam and China have always recognized each other as their largest trading partners during a recent forum that took place on the 10th February. To enhance import and export activities between the two countries, relevant ministries and sectors have been closely coordinating with border localities such as Lang Son, Lao Cai, Quang Ninh, and Cao Bang, particularly in terms of agricultural products and food.
Deputy Minister Nam suggested that businesses and associations closely monitor the market situation, implement export code registration strictly, comply with legal requirements and meet partner and customer demands. In addition, they should coordinate with functional agencies at border gates to regulate the amount of agricultural products at the border, ensuring the progress and quality of products to avoid congestion and reduce costs for businesses.
According to the Head of the Economic Zone Management Board of Lao Cai province, Vuong Trinh Quoc, activities at Lao Cai International Border Gate have returned to normal since January 8. Within the past month, over 6,000 turns of vehicles have passed through the Lao Cai province’s border gates, primarily the Kim Thanh border gate, with fresh fruits, green beans, peanuts, and cassava as the main products. Fresh dragon fruit accounted for 80% of the total products imported and exported.
The Standing Vice Chairman of Lao Cai Provincial People’s Committee, Hoang Quoc Khanh, proposed the Ministry of Agriculture and Natural Resources to standardize the production and packaging processes of agricultural products for export. He also urged for an increase in the output of fruits that are granted export planting area codes and for the signing of the Protocol on plant quarantine for Vietnam’s agricultural products to minimize the time and procedures for inspection and control at border gates.
At the forum, the delegates stressed the importance of making effective use of the trade cooperation mechanism between Vietnam and China. They recommended developing a roadmap and plan to open markets for agricultural products for export based on assessing domestic production capacity and export market demand. Additionally, businesses and production facilities need to implement regulations on quality quarantine standards, packaging, traceability of the Chinese market, and use the railway transport route, Vietnam-China transport, and e-commerce to their advantage.
Deputy Director of the Asia-Africa Market Department, Ministry of Industry and Trade, To Ngoc Son, pointed out the need to increase regional access to small markets, such as Guangxi and Yunnan, in China. He emphasized that each province in China has a different consumption habit and requirements for agricultural products due to their vast economic scale, and thus, businesses and localities must consider this in their approach.
In conclusion, the trade relationship between Vietnam and China has a promising future as both countries have identified each other as their largest trading partner. The recent efforts to strengthen business connections between the two countries, especially in the agricultural sector, through measures such as coordination with border localities and implementing regulations on quality quarantine standards, provide a solid foundation for further growth and cooperation.