by Trần Thị Bích Hạnh
Vice Director of International Department, Reporter of Nhan Dan Newspaper, Vietnam
Over the past time, cooperation and connection between Vietnam and China in general, and connection within the BRI framework in particular, have achieved some remarkable results. Enterprises of the two countries have actively cooperated in trade and transportation on the Hai Phong, Hanoi and Chongqing routes. Cooperation between the two sides has the prospect of strong development in the coming time.
In 2017, Vietnam and China signed and initially implemented a Memorandum of Understanding (MOU) on promoting connection between the Two Corridors, One Belt framework and the Belt and Road Initiative (BRI). The two sides committed to cooperate and connect in five areas including policy connection, investment cooperation and infrastructure connection, trade connection, financial connection and human connection. In 2023, during Chinese President Xi Jinping’s visit to Vietnam, the two countries signed the BRI Connectivity Plan.
Development cooperation and connection between Vietnam and China is taking place in the context of many changes in the regional and world situation, especially since 2018.
First, economic connection, in which transport infrastructure linkage is a focus, is becoming a major trend of countries in the region. Since 2013, the Asia-Pacific Economic Cooperation (APEC) Forum has identified an APEC connection plan until 2025 with three focus areas: institutional connection, physical connection (including infrastructure) and human connection. In Southeast Asia, a common community – the ASEAN Community (AC) – was born at the end of 2015 and countries in the region are actively implementing the Master Plan on ASEAN Connectivity 2025. BRI and other sub-regional cooperation initiatives also focus on the above-mentioned areas of connection. However, infrastructure connectivity in Southeast Asia in particular, and Asia-Pacific in general, is becoming one of the areas of competition between China and the US and Western countries.
Second, strategic competition between major countries, especially the US and China, is increasingly fierce, especially in the Asia-Pacific region, which has a profound impact on the process of globalisation and regional cooperation. The US and China have been exerting their influence on this region via their specific regional and global strategies and plans, including the implementation of initiatives, such as the BRI (initiated by China), and the Indo-Pacific Economic Cooperation Framework (led by the US).
Third, the global economy (including Vietam and China) is entering a difficult period in the “post-COVID-19” era. International organisations such as the IMF, WB, and OECD predict that world economic growth in 2023 will slow down, to only about 2.1 per cent (according to the WB), 2.7 per cent (according to the OECD). In China, in early 2023, many experts were optimistic that the economy would recover quickly after the pandemic, but in reality, the economy is facing some challenges, such as high unemployment, sluggish consumption demand, and a stagnant real estate sector. In Vietnam, the economic growth rate in the first nine months of the year only reached 4.24 per cent and the growth target of 6.5 per cent for the whole year 2023 is forecast to be beyond reach. In the above context, promoting connectivity, finding opportunities for cooperation and economic development is an urgent need for both China and Vietnam.
Fourth, Chinese President Xi Jinping’s visit to Vietnam in December 2023 opened up opportunities for stronger cooperation between Vietnam and China within the framework of the BRI initiative. Accordingly, the two sides emphasized higher political trust, deeper substantive cooperation, better control and resolution of disagreements…
From 2018 up to now, more and more Chinese businesses are interested in investing in Vietnam; China currently ranks 6th out of 143 countries and territories investing in Vietnam. In 2023, China invested 4.47 billion USD in Vietnam, ranking 4th among countries and territories investing in Vietnam. Regarding trade, bilateral trade turnover has increased continuously over the past years. Vietnam – China trade turnover in 2023 will reach nearly 172 billion USD, of which Vietnam will export 61.2 billion USD to China. Vietnam is currently China’s 4th largest trading partner in the world.
The two countries are cooperating in researching and planning the construction of railway lines connecting the cities of Con Minh – Lao Cai – Hanoi – Hai Phong; Nanning – Lang Son – Hanoi – Hai Phong.
To promote development connection between Vietnam and China in general, connecting the Two Corridors, One Belt framework with the BRI in particular, the two sides should strengthen cooperation on the following aspects:
(1) The two countries need to actively cooperate and focus on resolving bottlenecks in border crossing procedures such as customs, and quarantine to reduce transportation time, reduce costs, and increase competitiveness for logistics businesses and exported goods of both sides. The Vietnamese side should actively push the Chinese side to open its market further for Vietnamese goods, especially agricultural products.
(2) Vietnam needs to boost infrastructure connecting with China, especially in border areas; pay more attention to promoting strategic infrastructure connection projects, such as 1.435mm gauge railway projects under Two Corridors, One Belt (already included in the National Railway Network Planning to 2030).
(3) Vietnam and China should strengthen people-to-people exchanges and cooperation and exchanges between border localities. Cooperation with border localities and localities on the New International Land-Sea Trade Corridor (Guangxi, Chongqing) is an important solution to maintaining Vietnam’s “bridging” role in connecting China – ASEAN.
My experiences in Chongqing helped me realize that this city is an international logistics city, a motivation for China’s economic development. I hope that in the future, Vietnam and Chongqing will have more cooperation projects.
*The views and opinions expressed in the articles are solely those of the individual authors and do not reflect the position of the Secretariat of the Belt and Road Journalist Network.