Vietnam Prime Minister Pham Minh Chinh holds talks with Chinese Premier Li Qiang.
Vietnam and China signed ten significant agreements on Sunday, covering various areas such as agriculture cooperation, cross-border payments, and infrastructure development. The signing took place during Chinese Premier Li Qiang’s three-day visit to Hanoi, as the two neighbors aim to deepen economic and political ties. This latest development marks a continuation of efforts to strengthen bilateral relations between the two nations, which have seen substantial growth in trade and cooperation.
The agreements were finalized during a formal signing ceremony that followed Premier Li Qiang’s meeting with Vietnamese Prime Minister Pham Minh Chinh. In addition to the official meetings, Li also held discussions with key Vietnamese leaders, including Communist Party chief and President To Lam, to bolster cooperation on a range of issues, particularly focusing on economic collaboration and agricultural trade.
The relationship between Vietnam and China has become increasingly intertwined in recent years, with China emerging as Vietnam’s largest trading partner. The significance of China’s role in Vietnam’s economy was underlined by recent trade figures. Bilateral trade between the two countries surged by 21% in the first three quarters of the year, amounting to a total of $148 billion.
China serves as a critical source of imports for Vietnam’s manufacturing sector, which relies heavily on Chinese raw materials, machinery, and components. At the same time, Vietnam’s exports to China, especially in agricultural produce, have increased as the Southeast Asian nation positions itself as a key supplier in China’s food security strategy.
The agreements signed over the weekend are expected to further accelerate this trend. According to a statement from the Vietnamese government, the accords cover a broad spectrum of areas, including agriculture, transportation, financial cooperation, and trade facilitation. These agreements come at a pivotal time for Vietnam, as the country seeks to modernize its infrastructure and deepen its economic integration with neighboring China.
One of the key areas of discussion during the visit was agriculture, a sector that has long played an essential role in the economic ties between Vietnam and China. Agriculture accounts for a large portion of Vietnam’s exports to China, with products like rice, fruits, coffee, and seafood being among the most prominent.
During the bilateral meetings, Prime Minister Pham Minh Chinh called for China to boost agricultural trade by opening its doors to more Vietnamese farm produce. The Prime Minister highlighted the importance of enhancing customs clearance procedures at the border to facilitate faster and more efficient trade.
According to Vietnam Television (VTV), Chinh urged China to implement policies that would provide greater market access for Vietnamese agricultural products. The goal is to reduce barriers that have often caused delays and disruptions at the border, particularly for perishable goods such as fruits and seafood. Improved customs procedures are expected to not only expedite trade but also strengthen Vietnam’s competitiveness in China’s growing agricultural market.
The agricultural sector in Vietnam has been thriving, with increasing exports to China, but there is significant room for growth, especially with further access to Chinese markets. By opening doors to more agricultural produce, Vietnam hopes to diversify its export portfolio and reduce its dependency on a few key markets.
Another critical aspect of the agreements was the focus on transportation and infrastructure, particularly cross-border railway links. Vietnam and China signed a document to update progress on ongoing railway connectivity projects, which include the critical task of site surveys.
The two nations have repeatedly expressed interest in upgrading their rail links, which are crucial for facilitating trade and transportation. The current rail system, connecting Kunming in China’s Yunnan province with Hanoi and the port city of Haiphong, dates back to the French colonial period. While this rail line remains operational, it is outdated, and discussions have been ongoing about modernizing and expanding the railway infrastructure.
However, despite years of talks, neither country has provided concrete details or cost estimates for upgrading the railway connections. Prime Minister Chinh emphasized the need for both sides to cooperate on implementing the signed agreements related to railway links. Modernizing this infrastructure would not only boost trade but also enhance the overall connectivity between the two nations, positioning the region as a critical logistics hub.
The lack of detailed plans and funding for these railway projects has been a point of contention, as both sides recognize the importance of modern, efficient transport links to support growing trade volumes. With the signing of these agreements, there is hope that progress will finally be made on the long-discussed upgrades, particularly as Vietnam seeks to strengthen its regional transport network.
One of the more innovative agreements signed during Li Qiang’s visit was focused on financial cooperation. On Saturday, the National Payment Corporation of Vietnam (NAPAS) and China’s UnionPay International signed a pivotal agreement to facilitate cross-border payments via QR codes.
The collaboration between NAPAS and UnionPay is aimed at simplifying transactions between the two countries by deploying cross-border QR code payments. This system would allow businesses and individuals in both Vietnam and China to make payments more easily, fostering greater economic interaction.
The introduction of cross-border QR code payments is part of a broader effort to modernize financial infrastructure and promote the use of digital payment systems in cross-border trade. As both countries increasingly embrace digital economies, the ability to conduct transactions swiftly and securely will be critical for the continued expansion of trade and commerce.
For Vietnam, this initiative is also seen as a way to attract more Chinese tourists, who are one of the largest groups of foreign visitors to the country. With simplified payment systems, Chinese tourists could have a more seamless experience in Vietnam, boosting the local tourism industry.
While the agreements signed over the weekend are largely focused on economic cooperation, the visit by Premier Li Qiang also holds significant diplomatic and strategic importance. Vietnam and China share a complex relationship that is shaped by both collaboration and competition. Although they are important economic partners, the two countries have had disputes, particularly in the South China Sea, where competing territorial claims have caused tensions in recent years.
However, both sides have shown a willingness to manage these tensions and focus on their mutual economic interests. During the meetings in Hanoi, there were no public discussions of the territorial disputes, signaling that both governments are keen to emphasize the positive aspects of their relationship and work toward deeper cooperation.
The emphasis on economic collaboration during Li Qiang’s visit is part of a broader Chinese strategy to strengthen ties with Southeast Asian nations. China has been actively engaging with its neighbors as part of its Belt and Road Initiative (BRI), an ambitious infrastructure project aimed at enhancing regional connectivity. Vietnam, with its strategic location and growing economy, is a key partner in this initiative.
At the same time, Vietnam has been carefully balancing its relationship with China while also fostering ties with other major powers, including the United States, Japan, and the European Union. By maintaining strong economic relations with China, Vietnam ensures that it remains a vital player in the region’s economic landscape while avoiding over-dependence on any one partner.
As Premier Li Qiang’s visit comes to a close, the agreements signed between Vietnam and China signal a new phase in their relationship. The focus on trade, agriculture, infrastructure, and financial cooperation reflects both nations’ commitment to building stronger economic ties and addressing the practical challenges that have hindered previous efforts.
The continued collaboration on agricultural trade and the modernization of railway links are expected to have a lasting impact on the bilateral relationship. Additionally, the introduction of cross-border QR code payments could revolutionize the way transactions are conducted between the two countries, further facilitating trade and tourism.
For Vietnam, deepening its relationship with China remains a strategic priority, particularly as the country seeks to enhance its role in regional supply chains and increase its agricultural exports. At the same time, Vietnam will continue to navigate its complex relationship with China, balancing economic cooperation with its own national interests and regional diplomacy.
As the world watches these two growing economies strengthen their partnership, the agreements signed during Premier Li’s visit represent an important step forward in fostering greater economic integration and cooperation between Vietnam and China.
