China and Vietnam beef up protocols

During an official state visit to China last week by Vietnamese Party General Secretary and State President To Lam, he and China’s top leaders discussed the flourishing relationship between the two nations, particularly in trade and investment.

Both sides emphasised the need to fuel this relationship through new mechanisms, including expanded cooperation in infrastructure development, with a particular focus on railway projects.

According to Vietnam’s Ministry of Foreign Affairs, the two countries reached a consensus on continuing to strengthen cooperation in security and defence, as well as boosting economic, trade, and investment collaboration. This includes promoting connectivity under the “two corridors, one belt” and Belt and Road initiatives, fostering railway and road infrastructure connections, strengthening supply chain cooperation, and enhancing economic cooperation among border localities.

Additionally, they agreed to increase exchanges in the reform of state-owned enterprises.

Party General Secretary and State President To Lam welcomed China’s involvement in developing three standard-gauge railway projects that will connect the two countries, the Vientiane-Vung Ang railway, and the metro system in Hanoi.

During the visit, Vietnam and China signed over a dozen documents covering various sectors, including cross-border railway development (see box).

The Vietnamese leader also urged China to further open its market to Vietnam’s high-quality agricultural products and to support the establishment of the Vietnamese Consulate General in Chongqing, along with trade promotion offices in China. He also suggested China accelerate its large-scale, high-quality investments in Vietnam, pilot smart border gates, consider local currency payment cooperation, and enhance collaboration in science and technology, innovation, green transition, digital transformation, and high-tech agriculture.

Party General Secretary and President of China Xi Jinping expressed China’s willingness to increase imports of Vietnamese agricultural products, expand trade promotion offices in China, and provide better access for high-quality Vietnamese farm produce in the Chinese market.

Meanwhile, Chinese Premier Li Qiang emphasised the importance of maintaining a consistent cooperation framework and promoting the role of the China-Vietnam Steering Committee for Bilateral Cooperation. He also highlighted the need to improve rail connections between Vietnam and Europe via China, accelerate the feasibility study of the Lao Cai – Hanoi - Haiphong railway, make planning for the Dong Dang – Hanoi, and Mong Cai – Halong – Haiphong railways, and facilitate the entry of Vietnamese high-quality agricultural and fishery products into China.

Currently, Vietnam and China are connected by two railways from southern China to Vietnam’s northern industrial hub and Hanoi.

However, the infrastructure on the Vietnamese side is outdated, with a different gauge from China’s high-speed rail, necessitating the transfer of passengers and goods at the border. Upgrading Vietnam’s rail infrastructure could significantly boost trade and investment, particularly as more Chinese manufacturers relocate export-oriented operations to Vietnam.

According to the General Statistics Office, in the first seven months of this year, total trade turnover between Vietnam and China reached an estimated $112.6 billion. Vietnam’s exports to China amounted to $33.4 billion, a 7.6 per cent increase on-year, while imports from China were valued at $79.2 billion, nearly a 35 per cent increase compared to the same period last year.

In 2023, China accounted for 25.3 per cent of Vietnam’s total trade, with 17.3 per cent of export turnover and 34 per cent of import value.

Cumulatively as of July 20, Chinese firms had nearly 4,760 valid projects registered in Vietnam, totalling $28.55 billion, making China the sixth-largest foreign investor. In the January-July 20 period, Chinese investors’ total newly-registered and newly added capital and stake acquisition and capital contributions in Vietnam was $1.65 billion.

Top leader’s visit marks new milestone in Vietnam - China friendly neighbourliness The state visit by Party General Secretary and State President To Lam and his spouse to China from August 18-20 was a great success, marking a new milestone and ushering in a new phase of development in the friendly neighborliness and comprehensive strategic cooperative partnership between the two countries.