Vietnam – China trade on the road to US$200 billion ambitious goal this year

Society – Economy - Ngày đăng : 23:34, 18/08/2024

Two-way trade turnover between Vietnam and China fetched US$112.2 billion in the past seven months, up 25% year on year, and if the steady growth is maintained in the coming months, the total trade value is likely to hit US$200 billion by the end of the year, say industry insiders.
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Alongside fresh durian, Vietnamese fresh lychee is also preferred by Chinese consumers.

Of the seven-month figure, Vietnamese exports brought back US$32.6 billion, representing a year-on-year rise of 5%, while its imports were valued at US$79.6 billion, up 35.6%.

Notably, China was the first market with two-way trade with Vietnam exceeding US$100 billion in the seven-month span.

Vietnam exports to China products such as mobile phones, components, electronic equipment, rubber, agricultural products, and seafood. It imports from the Chinese market products such as machinery, equipment, raw materials for garment and leather shoe making, iron and steel, construction materials and other household utensils.

Among exported agricultural products, durian is the major export item that is preferred by Chinese consumers. After fresh Vietnamese durian was officially allowed to enter the Chinese market in 2022, the export value of this fruit to China last year rose to US$2.2 billion. The first half of this year alone also saw the export of this fruit to China bring back US$1.1 billion.

China is still the largest consumer of Vietnamese fruits and vegetables, with its import value hitting US$2.1 billion in the first half of this year, accounting for 64% of Vietnam’s total export turnover of the products and representing a year-on-year rise of 22%, says Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetable Association (Vinafruit).

Alongside fresh durian, fresh coconut is also another potential export item that China needs. If China soon approves a document paving the way for Vietnamese fresh coconut to enter its market, coconut businesses are likely to earn between US$300-400 million.

This is a potential export item of Vietnam because China meets just 10% of local demand for fresh coconut, says the Vinafruit official.

As China is increasingly opening its doors for more official Vietnamese agricultural products, many types of Vietnamese fruits will find it easy to make inroads into this market.

According to Nong Duc Lai, trade councilor of the Vietnamese Embassy in China, Chinese Customs is coordinating with relevant Vietnamese ministries and agencies, such as the Ministry of Agriculture and Rural Development and the Ministry of Industry and Trade in speeding up the signing of protocols for fresh coconuts, frozen durians, wild caught aquatic products, and crocodiles to enter the Chinese market.

Alongside agricultural products, businesses are effectively taking advantage of preferential tariffs from free trade agreements (FTAs) such as the ASEAN-China free trade agreement (ACFTA) and the Regional Comprehensive Economic Partnership (RCEP) agreement to increase their exports to China.

The 2024 China International Fair For Trade In Service (CIFTIS) is scheduled to take place in Beijing from September 12 to 16, with the goal of promoting service - trade cooperation with Vietnamese businesses. This is an important opportunity to help increase import-export turnover between the two sides toward the US$200 billion trade target this year.

VOV