Vietnam - China: Positive trade, breakthrough investment

19/08/2024 11:26

China is currently Vietnam's largest trading partner, while Vietnam is China's largest trading partner in ASEAN. China is also the leading FDI investor in terms of the number of newly registered projects in Vietnam in the first 7 months of this year.

In trade activities,  convenient geographical location, and long-standing traditional trade relations have created great advantages for goods trade between Vietnam and China. Import and export turnover has continuously grown strongly over the years, proving this.

Vietnam - China's largest trading partner in ASEAN

China is currently Vietnam's largest import market and 2nd largest export market, while Vietnam is China's largest trading partner in ASEAN, the 8th largest trading partner, the 5th largest export market, and China's 9th largest import market in the world.

In particular, in 2018, after the two countries established the framework of the Comprehensive Strategic Cooperation Partnership, the bilateral trade turnover between Vietnam and China reached 106.7 billion USD, an increase of more than 3,300 times compared to 1991.

In recent years, in the context of gloomy global trade, Vietnam's import and export growth with China is still one of the outstanding bright spots. According to data from the General Department of Customs, in 2023, bilateral import and export turnover will reach 171.2 billion USD. In which, Vietnam's exports to China reached 61.2 billion USD, up 6.4% compared to 2022 (equivalent to an increase in turnover of 3.7 billion USD). Imports of goods from China in 2023 will reach 110.64 billion USD.

Vietnamese products exported to China include: Computers, electronic products,

phones of all kinds and components, rubber, wood and wood products, shoes, fruits and vegetables, agriculture and fisheries, etc.

In the first 7 months of 2024, imports and exports between Vietnam and China maintained a positive growth momentum with an estimated turnover of 112.58 billion USD. In which, Vietnam's export turnover to China in 7 months was estimated at 32.568 billion USD, up 5.01% over the same period. Vietnamese products exported to China include: mobile phones, components, electronic devices, rubber, wood and wood products, shoes, fruits and vegetables, agricultural and fishery products, etc.

Notably, in 2024, China is still identified as a key export market for agriculture, forestry and fishery products of Vietnam, which is expected to achieve high growth. In addition to strong products such as vegetables and seafood, businesses are focusing on increasing the market share of potential items such as rubber, pepper, cassava, etc.

On the other hand, China continues to be the largest import market of our country with an estimated turnover of 7.615 billion USD in the first 7 months of 2024, up 35.64% over the same period last year and accounting for more than 37% of the country's total import turnover. Vietnam imports from the Chinese market mainly products and raw materials for production such as: machinery, equipment, chemicals and chemical products, plastics of all kinds and products from plastics, textile and garment materials, leather and footwear, iron and steel, iron and steel of all kinds, etc  construction materials...

Export turnover of Vietnamese goods to China in July of each year, period 2014 - 2024 (USD).

(Source: General Department of Customs)

China - the leading partner in the number of new FDI investment projects in Vietnam

In terms of investment, in the context of trade relations between China and some partners becoming tense and the pace of domestic economic development slowing down, especially after China abolished the Zero Covid policy, Chinese investors shifted to accelerate production and business investment in Vietnam.

Statistics show that investment capital from China in Vietnam increased sharply from 2.92 billion USD in 2021 to 4.47 billion USD in 2023. In 2023, Chinese investors have registered to invest in Vietnam up to 4.47 billion USD, up 77.6% compared to 2022. In addition, 707 new projects, 179 capital adjustment projects and 412 capital contributions and share purchases have been registered by Chinese investors in Vietnam.

In the first 7 months of 2024, according to the Foreign Investment Agency (Ministry of Planning and Investment), in terms of the number of projects, China is the leading partner in the number of new investment projects (540 projects with a total newly registered capital of 1.22 billion USD, accounting for 29.7% of the total number of new investment projects in the country); 113 projects increased capital with a total capital increase of 303.21 million USD; 268 capital contributions and share purchases with a total capital of 124,021 million USD.

Generally, the total newly registered capital, additional capital and contributed capital and share purchase of Chinese investors in Vietnam in the first 7 months of 2024 is 1,648 billion USD. Accumulated from 1988 to now, China has had 4,754 newly-granted projects in Vietnam with a total registered capital of 28.551 billion USD.

It is forecasted that the prospects for trade and investment between Vietnam and China in the coming time will continue to have many advantages due to the recovery of import demand for production, especially the trend of increasing investment and cooperation to take advantage of incentives from bilateral cooperation agreements as well as multilateral agreements that Vietnam and China participate in such as:  the ASEAN-China Free Trade Agreement (ACFTA), the Regional Comprehensive Economic Partnership (RCEP)...