Vietnam on target to become China’s largest ASEAN trade partner
Vietnam is on track to become China’s largest trade partner in 2016 ahead of the initial 2017 forecast. Currently, Vietnam is the second largest trade partner after Malaysia but there has been substantial growth between the two nations due to the continued global economic slowdown and the ongoing talks to upgrade the ASEAN-CHINA Free Trade Area (ACFTA) that initially came into effect on January, 1st 2010. The ACFTA is the largest free trade area in the world in terms of population.
Talking to reporters in Hanoi, the economic and commercial counsellor of the Chinese Embassy in Vietnam Hu SuoJin, stated trade relations between the two countries have grown at a rapid rate and Vietnam will surpass Malaysia as the largest ASEAN trade partner to China, forecasting a trade value of $100 billion in 2016.
Bilateral trade revenue between China and Vietnam in 2015 stood at $95.8 billion, a year-on-year increase of 14.6 %. That included $66.1 billion in China’s exports to and $29.7 billion in its imports from Vietnam, up 3.8% and 49.1% from 2014 respectively. The imbalance in trade deficit is something that is being addressed with a long term view of reduction by re-balancing trade as Vietnam ships high value goods, electronics and machinery to China. The deficit in Vietnam’s trade with China reducing by over $7 billion in 2015 from the 2014 figures cited by Chinese officials.
Officials have stated that the countries are continuing to negotiate a bilateral cross-border trade agreement that will be signed this year and will help to improve the lives of locals within the border areas as well as efficiency.
At present the United States is still the number 1 importer of Vietnamese goods, while the top exporting products from Vietnam globally in order are: telephones and their parts, textiles & sewing products, computers & electronic products and in fourth place footwear.
China is currently ninth among countries directly investing into Vietnam although the increase in investment from China has not always been welcomed with anti-Chinese riots taking place over the years. South Korea is the country’s largest source of FDI with $2.68 billion, accounting for 17.2 per cent of the total new FDI (total FDI in 2015 22.76 billion USD), followed by Malaysia with $2.45 billion or 15.7 per cent and Japan with $1.28 billion with the manufacturing and processing sector attracting the lion’s share of FDI at $15.23 billion, accounting for about 67 per cent of the nation’s FDI.
Vietnam is on track to become China's largest trade partner in 2016 ahead of the initial 2017 forecast. Currently, Vietnam is the second largest trade partner after Malaysia but there has been substantial growth between the two nations due to the continued global economic slowdown and the ongoing talks to upgrade the ASEAN-CHINA Free Trade Area (ACFTA) that initially came into effect on January, 1st 2010. The ACFTA is the largest free trade area in the world in terms of population. Talking to reporters in Hanoi, the economic and commercial counsellor of the Chinese Embassy in Vietnam Hu SuoJin, stated...
Vietnam is on track to become China’s largest trade partner in 2016 ahead of the initial 2017 forecast. Currently, Vietnam is the second largest trade partner after Malaysia but there has been substantial growth between the two nations due to the continued global economic slowdown and the ongoing talks to upgrade the ASEAN-CHINA Free Trade Area (ACFTA) that initially came into effect on January, 1st 2010. The ACFTA is the largest free trade area in the world in terms of population.
Talking to reporters in Hanoi, the economic and commercial counsellor of the Chinese Embassy in Vietnam Hu SuoJin, stated trade relations between the two countries have grown at a rapid rate and Vietnam will surpass Malaysia as the largest ASEAN trade partner to China, forecasting a trade value of $100 billion in 2016.
Bilateral trade revenue between China and Vietnam in 2015 stood at $95.8 billion, a year-on-year increase of 14.6 %. That included $66.1 billion in China’s exports to and $29.7 billion in its imports from Vietnam, up 3.8% and 49.1% from 2014 respectively. The imbalance in trade deficit is something that is being addressed with a long term view of reduction by re-balancing trade as Vietnam ships high value goods, electronics and machinery to China. The deficit in Vietnam’s trade with China reducing by over $7 billion in 2015 from the 2014 figures cited by Chinese officials.
Officials have stated that the countries are continuing to negotiate a bilateral cross-border trade agreement that will be signed this year and will help to improve the lives of locals within the border areas as well as efficiency.
At present the United States is still the number 1 importer of Vietnamese goods, while the top exporting products from Vietnam globally in order are: telephones and their parts, textiles & sewing products, computers & electronic products and in fourth place footwear.
China is currently ninth among countries directly investing into Vietnam although the increase in investment from China has not always been welcomed with anti-Chinese riots taking place over the years. South Korea is the country’s largest source of FDI with $2.68 billion, accounting for 17.2 per cent of the total new FDI (total FDI in 2015 22.76 billion USD), followed by Malaysia with $2.45 billion or 15.7 per cent and Japan with $1.28 billion with the manufacturing and processing sector attracting the lion’s share of FDI at $15.23 billion, accounting for about 67 per cent of the nation’s FDI.
