FTAs enhance Vietnam-China trade growth

Harvesting blue dragon fruit in the south central coastal province of Binh Thuan. China spent nearly US$4.35 billion on importing fruits and vegetables from Vietnamese suppliers in the first 11 months of 2024, up 27.4 percent year-on-year

Vietnam has participated in 19 FTAs, 16 of which are currently in effect, while three others are under negotiation. These FTAs have positioned Vietnam as one of the most open economies, facilitating Vietnamese enterprises’ access to and establishment of trade relations with more than 230 markets.

Both Vietnamese and Chinese governments view FTAs as a new foundation for further opening up to the global market, accelerating domestic reforms, integrating into the global economy, and enhancing economic cooperation with other economies. FTAs are also a significant complement to the multilateral trade system. China has engaged in 24 FTAs, of which 16 have been signed and realized.

In 2003, Vietnam, along with ASEAN, signed a Framework Agreement on Comprehensive Economic Cooperation, establishing a free trade area with China. In 2020, both countries signed and are implementing the Regional Comprehensive Economic Partnership (RCEP) agreement.

“Vietnam and China, with mountains and rivers interconnected, share a geographically advantageous position. Vietnam has signed 17 FTAs and is negotiating several others. Through Vietnam, China can access FTA markets in which Vietnam is participating,” stated Minister of Industry and Trade Nguyen Hong Dien. He emphasized that FTAs will create additional driving forces for bilateral trade.

Trinh Minh Anh, Office Chief of the Intersectoral Steering Committee for International Economic Integration, said the ASEAN-China FTA, the RCEP and the establishment of the comprehensive strategic partnership between Vietnam and China in 2008 have all significantly boosted bilateral trade. In 2024, Vietnam and China, along with ASEAN countries, are negotiating the upgrade of the ASEAN-China FTA to version 3.0, aiming to open more economic and trade opportunities for the region, particularly for both countries.

Notably, thanks to the momentum provided by FTAs, China has consistently been Vietnam’s largest trading partner for many years. Bilateral trade growth over the past decade has reached double-digit levels. China has become Vietnam’s second-largest export market and largest import market. With numerous advantages in economic and trade cooperation, trade between Vietnam and China has maintained steady and sustainable growth for many years.

Fresh coconuts from Vietnam’s Ben Tre Province were for the first time exported to China through official channels in 2024

In the first 11 months of 2024, the bilateral trade reached US$185.4 billion, surpassing the total trade volume of 2023 by nearly US$15 billion. Bilateral trade is projected to reach US$200 billion in 2024 - a record high - equivalent to nearly a quarter of Vietnam’s total foreign trade value.

The two countries are actively promoting “hard connectivity” in railways, highways, and border gate infrastructure, while upgrading “soft connectivity” through smart customs systems and intelligent border gates to further facilitate and enhance bilateral trade exchanges.

According to the Ministry of Industry and Trade, there remains significant room for bilateral trade growth, supported by various bilateral cooperation agreements and multilateral trade agreements such as the ASEAN-China FTA and RCEP. In the future, the upgrade of the ASEAN-China FTA will further accelerate investment and trade cooperation between the two countries.

Minister of Industry and Trade Nguyen Hong Dien also highlighted the rapid development of cross-border trade between Vietnam and China. However, alongside the growth of the digital economy and e-commerce, both countries are facing challenges in combating trade fraud, intellectual property violations, food safety assurance and protecting consumer rights, he said.

To promote substantial and sustainable bilateral cooperation, the Minister emphasized the need for both sides to enhance exchanges and share experience in building institutions and policies, organizational structures, and effective implementation in various areas of cooperation. He also stressed the importance of collaboration in training and developing high-quality human resources, enabling officials from both countries to exchange knowledge and practical experience.

Minister Nguyen Hong Dien concluded that, given the current fast-changing and complex regional and global situations, maintaining a stable, healthy and increasingly substantive Vietnam-China relationship is an objective necessity. It holds significant importance for the long-term development of both countries as well as for regional peace, stability and growth, he said./.