In H1 2024, Vietnam-China trade neared $100 billion, with Vietnam’s exports at $27.8 billion. A $39.2 billion trade deficit emerged, fueled by a surge in imports.
Trade Overview in H1 2024
In the first half of 2024, Vietnam-China trade approached $100 billion, with Vietnam’s exports totaling $27.8 billion, marking a 5.3% increase, and imports from China reaching $67 billion. The resulting trade deficit for Vietnam stood at $39.2 billion, a 67.9% increase. Despite the deficit, the robust trade relationship between the two countries continues to thrive.
Export Highlights and FDI Trends
Vietnam’s key exports to China included electronics and durians, the latter increasing by 46% to $1.2 billion. China leads in foreign direct investments in Vietnam, particularly in high-tech sectors like electronics and renewable energy, underscoring the growing economic ties and investment trends between the two nations.
Reports in the first quarter of 2024 have revealed that bilateral trade between Vietnam and China has exceeded the $100 billion mark, marking a significant milestone in the economic relationship between the two neighboring nations. This achievement underscores the strengthening of commercial ties and the vital role both countries play in each other’s economic strategies.
Manufactured goods, agricultural products, and electronics have been at the forefront of this burgeoning trade partnership. Vietnamese exports to China have shown remarkable growth, particularly in the sectors of textiles, footwear, and agricultural products like fruits and seafood. Simultaneously, China’s exports to Vietnam have continued to rise, driven by high value-added products such as machinery, electronic equipment, and parts.
This surge in trade volume can be attributed to a combination of factors, including better market access, streamlined customs procedures, and enhanced infrastructure at border points. Initiatives under the Belt and Road Initiative (BRI) and the Regional Comprehensive Economic Partnership (RCEP) have further solidified trade logistics and reduced barriers. Both governments have also actively promoted bilateral investment and cooperation through trade fairs, business forums, and economic delegations to foster mutual growth and partnership.
Moreover, the two nations have focused on improving the quality and diversity of traded goods, with increased emphasis on meeting international standards and sustainability. The establishment of joint ventures and collaborative projects in high-tech industries and renewable energy has created new avenues for economic interaction, reflecting a strategic shift towards deeper integration beyond traditional trade areas.
However, despite these positive developments, challenges remain. Trade imbalances, regulatory differences, and geopolitical tensions arise as potential risks to this expanding trade relationship. Both countries will need to engage in continuous dialogue and negotiation to resolve disputes and ensure long-term stability in their economic ties.
This remarkable growth in trade sets a precedent for the coming quarters, signaling a promising trajectory for Vietnam-China economic relations and underscoring their shared commitment to mutual prosperity and cooperation.
Source : Vietnam-China Bilateral Trade Surpasses $100 Billion in Q1 2024
