Viet Nam, China have room to grow trade ties: experts

Monday, May 13, 2019 08:40

Container trucks line up for customs clearance at Kim Thanh international border gate Road No II (Lao Cai Province). — VNA/VNS Photo Quoc Khanh

Vietnamese and Chinese enterprises are encouraged to tap into the great bilateral trade potential driven by the two countries’ open trade policies, experts said.

Viet Nam values and gives priority to strengthening economic and trade co-operation with China, and hopes to receive greater investment from China and the overseas Chinese community, said Nguyen Noi, deputy director of the Foreign Investment Agency under the Ministry of Planning and Investment.

“I’m pleased to see that many leading Chinese corporations are expanding their investments in the fields of electronics, renewable energy and IT, applying modern technology and bringing more value in line with Viet Nam’s foreign investment orientation,” Noi told a conference on Viet Nam-China trade and investment on Friday.

China continued to be Viet Nam’s largest trading partner in 2018 with total export-import turnover reaching US$106 billion, up 14 per cent year on year. Viet Nam has also surpassed Malaysia to become China’s biggest trading partner in the ASEAN region.

China is the seventh biggest investor in Viet Nam with total registered capital of $15 billion. However, the flow of Chinese investment into the country has increased rapidly in recent years.

In the first four months of 2019, China registered $1.3 billion of investment in Viet Nam, becoming the biggest foreign investor by newly registered capital.

Noi highlighted Viet Nam’s new foreign investment policy which prioritises projects with high added value, advanced technology, modern management, minimal environmental impact and spillover effects that support the country’s sustainable development.

He called on Chinese companies to increase investment in Viet Nam’s mechanics, electronics, new materials, pharmaceuticals, support industry, robotics, IT, infrastructure and clean energy.

According to Fu Long Cheng, Vice President of the Chinese Business Association, Viet Nam-China co-operation through the “Belt and Road” and “Two corridors, one economic belt” initiatives has created favourable conditions for businesses of the two countries to grow their trade ties.

It is important for businesses to identify priority areas, increase connectivity and expand co-operation on a broader, more practical and multi-channel framework, Cheng said.

He also said China has organised many seminars on Viet Nam-China trade and investment co-operation to introduce Viet Nam’s high quality projects to Chinese enterprises.

Evaluating investment potential in Viet Nam, Huang Rong, CEO of law firm Yingke Vietnam, said Viet Nam is now an attractive investment destination for China's businesses. Many Chinese firms value Viet Nam’s good infrastructure and quality labour force, as well as the reasonable cost of doing business in the country.

Yingke Vietnam has supported many Chinese enterprises in analysing financial factors, human resources and management before deciding to invest in Viet Nam.

At the conference, enterprises of the two countries were provided with updated information on investment opportunities, with a focus on preferential treatment under free trade agreements of which Viet Nam is a member. — VNS

Comments (0)

Statistic