The figure of 200 billion USD in import-export turnover between Vietnam and China can be achieved soon in the current favorable context.

Import and export maintain growth

According to statistics from Vietnam Customs, in 2023, the import-export turnover between Vietnam and China reached 171.9 billion USD, although it decreased by 2.6% compared to 2022, but there were still positive signs. Of which, exports to China reached 61.2 billion USD, up 5.6%; imports from China reached 110.6 billion USD, down 6.6%; trade deficit was 49.4 billion USD, down 18.4%. China continues to be Vietnam's largest trading partner, largest import market and second largest export market.

In the first 7 months of 2024, Vietnam's import-export turnover with China reached 112.2 billion USD, up 25% over the same period in 2023. Of which, Vietnam's exports to China reached 32.6 billion USD, up 5% over the same period in 2023; Vietnam's imports from China reached 79.6 billion USD, up 35.6% over the same period in 2023. Vietnam's trade deficit with China was worth 47 billion USD, up 70% over the same period in 2023.

Notably, China is the first market with two-way trade with Vietnam exceeding 100 billion USD in the first 7 months of this year.

Durian is a key export item to China (Photo: Government Electronic Newspaper)

In terms of goods, Vietnam exports to China items such as mobile phones, components, electronic equipment, rubber, agricultural products, seafood, etc. and imports from the Chinese market products such as machinery, equipment, raw materials for the garment industry, leather shoes, iron and steel, construction materials, etc., as well as daily necessities.

In terms of exports, agricultural products are the main item that Vietnam exports to China. In particular, durian is a "hot" item of Vietnam that is very popular in the Chinese market.

Since Vietnam and China officially signed the Protocol on phytosanitary requirements for durian exported from Vietnam from 2022, from mainly importing fresh Thai durian through official channels, in the first half of this year, fresh Vietnamese durian accounted for nearly 28% of China's total import turnover, with a value of 1.1 billion USD.

Mr. Dang Phuc Nguyen - General Secretary of the Vietnam Fruit and Vegetable Association said that China is still the largest import market for fruits and vegetables from our country, accounting for 64% of total export turnover with 2.1 billion USD in the first half of the year, up 22% over the same period. Durian is still the most favorite fruit in the market.

Regarding fresh coconut products, the Vietnam Fruit and Vegetable Association assessed that the demand for importing this product in the Chinese market is very large and tends to grow steadily, each year higher than the previous year. Meanwhile, China's coconut output only meets about 10% of domestic consumption demand, the rest is imported. Therefore, if this product is officially exported to the Chinese market, it will help Vietnam's fruit and vegetable exports continue to grow positively. According to the Vietnam Fruit and Vegetable Association's calculations, when the Fresh Coconut Export Protocol is signed, if well prepared, the coconut industry can earn an additional 300 - 400 million USD/year from this market.

Along with fruit and vegetable products, in general, industries and businesses have been quite responsive, effectively taking advantage of free trade agreements (FTAs) with this market to enjoy tariff incentives.

The Vietnam Import-Export Report 2023 recorded that preferential certificates of origin (C/O) (Form E and RCEP) under the ASEAN-China Free Trade Agreement (ACFTA) and the Regional Comprehensive Economic Partnership Agreement (RCEP) issued to Vietnamese goods exported to China in 2023 took the lead, reaching 19.4 billion USD.

In the Chinese market, export items with a high rate of preferential use (C/O Form E and C/O Form RCEP) in 2023 include vegetables and fruits, textile fibers, rubber and rubber products, footwear, and textiles.

Consumption is increasingly important in the growth structure, China is increasingly opening its doors to many Vietnamese agricultural products for official export. With the advantage of bordering, together promoting the balance of trade, many types of fruit promise to increase their market share in China.

Mr. Nong Duc Lai - Commercial Counselor, Embassy of Vietnam in China said: "Chinese Customs coordinates with relevant ministries and branches with Vietnam such as: Ministry of Agriculture and Rural Development, Ministry of Industry and Trade, to strengthen coordination to exchange and unify the content of protocols such as fresh coconut, frozen durian, wild-caught aquatic products, crocodiles and is expected to be signed soon in the near future".

Regarding imports, according to the Ministry of Industry and Trade, most of the goods imported from China are groups of goods that need to be imported (including machinery, equipment, tools, spare parts and raw materials for domestic production), serving signed export orders.

China continues to be the largest supplier of input goods to Vietnam, accounting for nearly 37.6% of the country's total import turnover in the first 6 months of the year. The country of one billion people, known as the "world's factory", can provide diverse manufacturing industries with products, from machinery and equipment to input materials for export industries such as phones, computers, fabrics, footwear and textile materials, etc.

Two-way trade will soon reach 200 billion USD

With the figure of 112.2 billion USD in import-export turnover in the first 7 months of this year, the average monthly import-export turnover between Vietnam and China reached about 16 billion USD. Thus, in the remaining 5 months, based on the strong improvement in trade in the first half of 2024, it is forecasted that the import-export turnover between Vietnam and China this year will likely approach the 200 billion USD mark. In the scenario of growth in the second half of the year being maintained as in the first half, it will reach 190 billion USD; if the recovery is better, it will reach, or even exceed, the 200 billion USD mark. This is positive because according to the annual rule, import-export will increase sharply at the end of the year due to the strong increase in import-export demand to serve consumption and the year-end holidays.

As planned, in September 2024, the 2024 China International Fair for Trade in Services will be held in Beijing (China) with the aim of promoting trade and service cooperation with Vietnamese enterprises. This is a comprehensive fair, focusing mainly on service industries, including energy, post and telecommunications; financial services; cultural and tourism services; educational services; trade and supply chain services... This is an important opportunity to increase import and export turnover between the two sides.

At the invitation of General Secretary of the Central Committee of the Communist Party of China, President of the People's Republic of China Xi Jinping and his wife, on the morning of August 18, General Secretary of the Central Committee of the Communist Party of Vietnam, President of the Socialist Republic of Vietnam To Lam and his wife, together with a high-ranking delegation of the Party and State, left Hanoi for a State visit to China from August 18 to 20, 2024.The delegation included comrades: Do Van Chien, Politburo member, Secretary of the Central Committee of the Party, Chairman of the Central Committee of the Vietnam Fatherland Front; Le Minh Hung, Politburo member, Secretary of the Central Committee of the Party, Head of the Central Organization Commission; Nguyen Xuan Thang, Politburo member, Director of the Ho Chi Minh National Academy of Politics, Chairman of the Central Theoretical Council; General Phan Van Giang, Politburo member, Minister of National Defense; Senior Lieutenant General Luong Tam Quang, Politburo member, Minister of Public Security; Le Hoai Trung, Secretary of the Party Central Committee, Head of the Party Central Committee's External Relations Commission; Nguyen Duy Ngoc, Secretary of the Party Central Committee, Chief of the Party Central Committee Office; Tran Luu Quang, Member of the Party Central Committee, Deputy Prime Minister; Nguyen Khac Dinh, Member of the Party Central Committee, Vice Chairman of the National Assembly; Nguyen Hong Dien, Member of the Party Central Committee, Minister of Industry and Trade and a number of Party Central Committee members who are leaders of ministries, branches and central agencies; Assistant to the General Secretary and President; Ambassador Extraordinary and Plenipotentiary of the Socialist Republic of Vietnam to the People's Republic of China.

Source: Cong Thuong Newspaper