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Vietnam aims for more exports to China to cut trade deficit

access_time Jun 13,2016 chat_bubble_outline 136 views
Vietnam has asked China to create favorable conditions for more Vietnamese goods to enter the world’s second largest economy in an effort to help balance the bilateral trade.

In a meeting on the sideline of the ongoing 4th China-South Asia Expo in China's Yunnan Province, Vietnamese Deputy Prime Minister Trinh Dinh Dung told Chinese Vice Premier Wang Yang the country would like to export more agriculture, forestry and fishery products, particularly rice, to China, according to a statement posted on the Vietnamese government portal on Sunday.

Regarding economic cooperation, Dung wanted the two sides to boost the operations of their joint working groups, especially on infrastructure and finance sectors. He also asked China to encourage its big enterprises to invest in major projects in Vietnam, including those which connect the two countries in infrastructure sector. In addition, Dung wanted China’s preferential loans and aids to Vietnam to be disbursed effectively.

Vietnam aims for more exports to China to cut trade deficit

The meeting between Vietnamese (L) and Chinese (R) delegations. Photo by VGP/Xuan Tuyen

Vietnam has signed 13 free trade agreements and is in talks to conclude 3 more including the Regional Comprehensive Economic Partnership (RCEP) which Vietnam and China are members. The Southeast Asian nation will also hold the Asia-Pacific Economic Cooperation (APEC) Summit next year. “In that context, Vietnam is ready to cooperate with Yunnan Province to enhance cooperation in the Greater Mekong Sub-region on education and training, science and technology, tourism and cross-border trade,” Dung said in the opening ceremony of the 4th China-South Asia Expo.

China’s Yang agreed in the meeting that the two sides should increase economic ties and carry out as soon as possible some critical cooperation projects.

About 5,000 enterprises from 89 countries and regions are taking part in the event in Kunming, capital of Yunnan, from June 12-17, Xinhua cited the organizers as saying.

This year, 140 enterprises mainly involved in handicrafts, agriculture, fishery, food processing and home appliances from Vietnam are participating at the expo with 280 booths.

Vietnam saw a reduction of 15.6 percent in its trade deficit with China in the first quarter of 2016, raising expectations about an ongoing decline for the whole year.

During the first quarter, Vietnam's export value to China was up 8.2 percent year-on-year to $3.9 billion. This was attributed to an increase in key export products; including fruit and vegetables, up 72.8 percent; and telephones and their components, up 77.1 percent.

The country spent $10.4 billion on imports from China, eight percent lower than the same period last year. Export value of some key products fell with equipment down 13.1 percent and telephones and their components down 18.4 percent.

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> Vietnam’s trade deficit with China drops

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