Vietnam eyes export boost through Chinese border
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Vietnam eyes export boost through Chinese border

Economy, Vietnam, Vietnam Finance News
Illustrative photo (Source: vtc.vn)

Hanoi (VNA) – Vietnam should implement polices to increase its export
volume through its border gates with China by taking advantage of the Vietnam-China
Border Trade Agreement, experts said.

The
agreement has created favourable conditions for Vietnam’s border provinces to
change reasonably their economic structure, they said.

However,
many experts were of the opinion that Vietnam should limit shipments of small
volume of exports without legal contracts, and promote large volume of exports,
as small-scale exports did not provide enterprises with incentives to improve
the quality of their goods and competitive ability.

Nguyen
Van Hoi, Deputy Director of the Border and Mountainous Trade Department under
the Ministry of Industry and Trade (MoIT), said the trade agreement was signed
in September 2016 with 16 articles to ensure an annual growth of 30 percent in
the trade value of goods exported through the border gates between Vietnam and China.

The
agreement will contribute partly to the socio-economic development and
improvement of the living standards of the people in the border areas, he said.
Vietnam’s major export goods to China include farming, forestry, seafood and
fresh fruit products.

Dinh Van
Thanh, former head of the MoIT’s Trade Research Institute, said the agreement
was applicable for trading via border gates and border markets in seven
provinces of Vietnam, including Cao Bang, Quang Ninh, Lang Son, Ha Giang, Lao
Cai, Lai Chau, Dien Bien, and two China’s provinces of Yunnan and Guangxi.

Nguyen
Van Son, Chairman of the People’s Committee of the northern mountainous
province of Ha Giang, said the development of border gate economy and border
trade is the key to economic development in Ha Giang province.

To promote
border trade development, Ha Giang has received recommendations from
enterprises to improve infrastructure, reform administrative procedure and
create favourable conditions for attracting enterprises’ investment in border
trade activities.

Thanh
said the infrastructure at border gates was limited owing to the lack of
investment, and the two countries have not had specific management policies for
border trade activities because of which those activities had not developed
strongly.

There
are not enough warehouses at the border gates between Vietnam and China to meet
the demand of trading activities, especially cold storage system, which has not
got any investment to be built.

Meanwhile,
some kind of farming and fresh fruit products of Vietnam have been exported to
China, but they were not exported under contracts.

Pham
Van Truong, a MoIT expert, said Vietnam should restructure the production of
farming products and goods to ensure the quality of those products and promote
exports with large volume. This would help avoid “saving” farm
produce from plummeting prices that happened over the past time, partly due to
small-scale and lack of legal contracts.

The
State should have specific solutions to provide market and capital support to
enterprises, said Truong, adding that the State should continue negotiations
with China to expand the market for Vietnamese goods by facilitating contracts
for large exports.

Thanh said
Vietnam should establish a border business association to protect the interests
of local enterprises engaged in trading activities with China, as well as other
countries.

The
Government needs to upgrade infrastructure for trading activities at border
gates, creating favourable conditions for border trade development, he added.

On the
other hand, he said Vietnam must diversify its forms and methods of trade
promotion with neighbouring countries and perfect a database of information on
border trade activities for managing those activities.-VNA

QBCA

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