This statement was made by Mr. Tran Ngoc Liem, Director of the Vietnam Chamber of Commerce and Industry, Ho Chi Minh City branch (VCCI HCM), during the opening ceremony of the 18th Vietnam-Shanghai Trade Fair. The exhibition will take place from September 20 to 21, 2024, at the SKY EXPO International Exhibition and Convention Center (Quang Trung Software Park, District 12, Ho Chi Minh City).

During the exhibition, a cooperation agreement was signed between VCCI HCM and the Shanghai Federation of Economic and Industrial Associations (SFIE) and the Shanghai Federation of Services.

Speaking at the opening ceremony of the exhibition, Mr. Tran Ngoc Liem, Director of VCCI HCM, stated that after more than 15 years since the two countries established a comprehensive strategic partnership in 2008, the Vietnam-China relationship has developed strongly and achieved significant results. High-level leaders from both sides have agreed to establish a new positioning for bilateral relations and issued a joint declaration to deepen and elevate the comprehensive strategic partnership, building a community for a shared future that holds strategic significance.

According to Mr. Tran Ngoc Liem, the recent state visit of General Secretary and President To Lam to China from August 18 to 20, 2024, during which 14 cooperation agreements were signed between ministries, sectors, and localities of the two countries, is a particularly important diplomatic activity for Vietnam and China this year. This has a substantial impact on the development trend of bilateral relations, moving towards a more substantive, solid, and comprehensive partnership in all areas, including trade and investment.

Regarding trade relations, Mr. Liem noted that China continues to be Vietnam's largest trading partner and the second-largest export market for Vietnam. Meanwhile, Vietnam is China's largest trading partner within the Association of Southeast Asian Nations (ASEAN) and the fifth-largest trading partner for China globally (after the United States, Japan, South Korea, and Russia).

In 2023, bilateral trade between the two countries reached over 171.9 billion USD. Of this, Vietnam's exports to China amounted to over 61.3 billion USD, a 5.6% increase, accounting for 17.3% of Vietnam's total export turnover; imports from China reached over 110.6 billion USD, a decrease of 6.6%, and accounted for 33.9% of Vietnam's total import turnover.

Specifically, in the first eight months of 2024, the trade turnover between Vietnam and China reached approximately 131 billion USD, a 23.7% increase. Vietnamese enterprises imported goods worth over 92.5 billion USD from China, a 34.2% increase compared to the same period in 2023, while exports to China reached nearly 38.3 billion USD, up 3.9%.

Notably, Vietnam's trade deficit with China exceeded 54.2 billion USD, a 69% increase compared to the same period in 2023, surpassing the total trade deficit of over 4.8 billion USD for the entire year of 2023 (in 2023, Vietnam's trade deficit from the Chinese market was over 49.3 billion USD).

Most of the goods imported from China include machinery, equipment, tools, spare parts, and materials for production. Conversely, Vietnam mainly exports to China items such as computers, electronic products and components, mobile phones and components, machinery and equipment, tools and spare parts, as well as agricultural products.

“It is evident that the Vietnam-China trade relationship has significant room for growth, based on numerous bilateral cooperation agreements and multilateral trade agreements such as ACFTA and RCEP. Both sides are striving to achieve a bilateral trade turnover of 200 billion USD in the near future,” said Mr. Tran Ngoc Liem, Director of VCCI HCM.

Regarding investment relations, Mr. Tran Ngoc Liem noted that as of August 31, 2024, China ranks sixth among 149 countries and territories investing in Vietnam, with 4,865 projects and a total registered capital of over 29.1 billion USD. The structure of Chinese FDI is undergoing significant changes. Previously, Chinese FDI in Vietnam focused mainly on manufacturing industries, such as wood processing, footwear, and textiles. However, recently, Chinese FDI has shifted towards high-tech industries, components, and spare parts for industrial production, electronics, automobiles, and green energy.

Mr. Liem also emphasized that as a national trade and investment promotion agency, VCCI always collaborates closely with government agencies and organizations in China to implement specific and practical activities that support the business communities of both sides.

“In recent years, we have organized numerous business delegations to participate in exhibitions in China and have also assisted our Chinese partners in organizing annual international fairs in Vietnam,” highlighted Mr. Tran Ngoc Liem, Director of VCCI HCM.

He further mentioned that to further strengthen trade and investment relations between Vietnam and China, VCCI HCM supports the Shanghai Fair Committee in organizing the 18th Vietnam-Shanghai Trade Fair. This prestigious exhibition showcases quality products from China, especially those branded from Shanghai, in areas such as chemicals, new energy, high-end equipment, medical and biomedical devices, household goods, and services. This year's exhibition is expected to feature over 200 Chinese enterprises and more than 20 associations, with nearly 1,000 visitors anticipated.