XU NINGNING:CHINA AND VIETNAM,TIGHT ON TRADE

Xu Ningning

On October 30,Nguyen Phu Trong,general secretary of the Communist Party of Vietnam(CPV) Central Committee,left Hanoi to pay a state visit to China,making him the first foreign head of state to visit China after the conclusion of the 20th National Congress of the Communist Party of China(CPC).China Report ASEAN conducted an interview with Xu Ningning,executive director of China-ASEAN Business Council(CABC) and chairman of the RCEP Industrial Cooperation Committee,to comment on the visit.

China Report ASEAN: What does Nguyen Phu Trong’s visit mean for the economic and trade cooperation between China and Vietnam?

Xu Ningning:Nguyen Phu Trong became the first foreign head of state to visit China after the 20th CPC National Congress,which highlights the friendship between Vietnam and China.I believe that the successful visit is a milestone for the relationship between both countries as well as both Parties that will greatly boost bilateral cooperation on economics and trade.I anticipate a series of consensuses reached between the heads of state on bilateral relations,cooperation needs,and the strategic partnership to maintain the China-Vietnam friendship in a comprehensive,deep,innovative,and pragmatic manner.

China Report ASEAN: What does the economic and trade cooperation between China and Vietnam look like?

Xu Ningning:The unmistakable trait of China and Vietnam’s partnership on economic and trade cooperation is the closeness.ASEAN has been China’s largest trading partner for the last three years,and Vietnam does the most trade with China among all 10 ASEAN countries.Rooted in a shared aspiration for development,the close relationship is beneficial to both China and Vietnam.Enterprises from both countries are seizing the new cooperation opportunities generated by the open regional market,further improving bilateral economic and trade relations.

Second,China and Vietnam work together to overcome difficulties that arise in cooperation.In recent years,as world economic turbulence and the COVID-19 pandemic brought multiple challenges to economic and trade activities,China and Vietnam have remained committed to deepening bilateral economic and trade cooperation,which has yielded remarkable achievements.

And third,the bilateral economic and trade cooperation has greatly boosted development of the China-Vietnam Comprehensive Strategic Partnership.Such cooperation enables both countries to continuously expand their common economic interests and benefit their peoples while also improving and enhancing bilateral political and people-topeople relations.

8%

6.5%

According to official departments in Vietnam,the country’s economy is expected to grow by8 percentthis year,the highest growth rate among ASEAN countries,and the figure will be6.5 percentin 2023.

China Report ASEAN: What has Vietnam’s investment environment looked like in recent years?

Xu Ningning:Bound by mountains and rivers,China and Vietnam enjoy highly complementary traits in economy and trade.Vietnam has opened its market to some countries (regions) according to free trade agreements it signed,enabling Chinese enterprises to enter the wider global market.Therefore,Vietnam’s investment environment is important for Chinese enterprises because more and more Chinese companies are consulting with CABC on the business environment and investment policies of Vietnam.

The investment environment in Vietnam has improved greatly in recent years.Increased administrative efficiency,improved investment regulations and laws,and enhanced efforts to crack down on corruption have all helped tremendously.

It should be noted that China and Vietnam share comprehensive and critical interests and requirements for economic cooperation.In the face of the increasingly pressing political and economic issues globally,both countries should enhance mutual trust and pursue development through cooperation,which is the fundamental and essential way to improve the investment environment.Bilateral cooperation should not be interrupted or disturbed by individuals’ opinions that run contrary to both countries’ shared interests and requirements to deal with external challenges through collaboration.

A China-Vietnam freight train leaves Xi’an City in China,bound for Vietnam’s capital Hanoi on August 23,2022.(VISUAL.PEOPLE.CN)

China Report ASEAN: How is Vietnam’s economy,trade,and investment situation looking overall?

Xu Ningning:The economic growth rate of Vietnam in the first nine months of this year reached 6.5 percent,with the third quarter up 13.67 percent year on year.According to official departments in Vietnam,the country’s economy is expected to grow by 8 percent this year,the highest growth rate among ASEAN countries,and the figure will be 6.5 percent in 2023.

In recent years,the government of Vietnam has been prioritizing the green and digital economies.It rolled out a series of industry-related development strategies,policies,and measures as well as action plans to encourage enterprises to accelerate green transformations.To support the development and application of renewable energy and new energy,the government has proactively become engaged in international cooperation on green and low-carbon economic growth and facilitated development of digital platforms and necessary infrastructure.

Vietnam has signed 15 free trade agreements including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP),the EUVietnam Free Trade Agreement,the Vietnam-Eurasian Economic Union Free Trade Agreement,and the Regional Comprehensive Economic Partnership (RCEP).

In 2021,Vietnam’s foreign trade volume reached a record high of US$668 billion,making it one of the top 20 economies with the largest trade volume.China was Vietnam’s biggest import market in the first 10 months of this year with an import value of US$100.7 billion.

Among the 103 countries and regions investing in Vietnam in the first 10 months of 2022,Singapore,Japan,and the ROK made up the top three with investment of US$5.34 billion,US$4.19 billion,and US$3.9 billion respectively.While foreign investment in Vietnam covers 18 of the 21 sectors of the country’s national economy,the lion’s share has gone to manufacturing,with registered capital in the sector exceeding US$12.9 billion and accounting for 57.5 percent of total foreign investment.

China Report ASEAN: How does deepened China-Vietnam economic and trade cooperation happen?

Xu Ningning:The first step is to make clear targets,expand consensus,and enhance implementation.

Second,both countries should join hands to tackle the increasing global problems that are becoming more pressing.Related sectors and industries should be proactive about tackling universal problems and coordinating with each other to implement corresponding measures.

Third,China and Vietnam need to tap into the new opportunities created by the open market of the RCEP.Market opening has become a major factor for both countries to boost economic and trade relations,and the RCEP’s entry into force presents a great opportunity to build highly complementary industrial chains and drive an industrial upgrade through industrial cooperation.

And fourth,China and Vietnam need to upgrade the China-ASEAN Free Trade Agreement (CAFTA) together.I believe that a newer version of the CAFTA will greatly facilitate bilateral economic cooperation and growth.To realize that,both countries need to engage in more dialogues and negotiations to pinpoint the most complementary places.Promoting economic cooperation and development is an important avenue for both sides to advance the China-Vietnam Comprehensive Strategic Partnership.