Vietnam-China economic relations

[Viet]

I want to start this threat about Vietnam-China economic relations, including cultural exchange, all non-military aspects. Pls post only comments and articles from business side. Pls NO politics nor military. There are plenty of threats of such topics.

VN tourism: most of international visitors came from China!

Top 10 International Visitors in Vietnam 2011
source: vietnamtourism.gov.vn

Rank country
1 China 1,416,804
2 South Korea 536,408
3 Japan 481,519
4 United States 439,872
5 Cambodia 423,440
6 Taiwan 361,051
7 Australia 289,762
8 Malaysia 233,132
9 France 211,444
10 Thailand 181,820

 

[susan12]

Vietnam does not belong to the ranking country list. Vietnam seems not to be the significant competitor of China...

 

[Viet]

Trade fair to further expand China-Vietnam trade links

Xinhua, July 28, 2012

The 2012 China's Guangxi-Vietnam Trade Fair, that kicked off on Thursday last week, has ushered a more vibrant trade relations between Vietnam and China's Guangxi Zhuang Autonomous Region.

With 140 pavilions covering an area of 4,500 square meters, the four-day fair showcased over 1,000 different products, including electrical machinery, sugar production technology, construction materials, food, medicines and other high-tech products.

On display at the trade fair's outdoor pavilion were China-made heavy equipment such as trucks, excavators and cars.

"In recent years, the sector of new energy vehicles in China has developed strongly," Yang Bin, general manager of the China Sumpo Electricmotor Fabricate company, said.

Interviewed by Xinhua, Yang said that apart from being environment-friendly, using electric vehicle is also very economical. "The cost of using electric vehicle is only one-tenth of the cost of maintaining a motorcycle," Yang said.

Vietnam is known as the world's motorcycle capital with some 5 million motorcycles plying the roads of Hanoi alone.

"We hope that we can soon work with the Vietnamese government to bring our products to Vietnam. We plan to set up an assembly plant here not only to save on costs and also to promote local employment," Yang said.

Ma Jixian, deputy director-general of the Department of Commerce of Guangxi Zhuang Autonomous Region, said that the holding of the trade fair is an important step in promoting economic cooperation between Guangxi and Vietnam.

"Since 2006, Guangxi has held six Guangxi-Vietnam trades fair which have received very good response from local enterprises," Ma said.

"Thanks to the holding of these trade fair, the trade volume between Guangxi and Vietnam has kept increasing around 40 percent annually in the past few years and the value of contracts signed during trade fairs has also increased about 50 percent year-on- year," Ma added.

According to the Guangxi Department of Commerce, the commercial ties between Guangxi and Vietnam have been strengthened in recent years, with bilateral trade increasing by 47.7 percent over the 2010 figure to nearly 7.6 billion U.S. dollars in 2011.

Government statistics showed that trade turnover between Vietnam and Guangxi topped among ASEAN countries, accounting for 79.3 percent of the total trade between Guangxi and ASEAN.

As of 2011, Guangxi has invested in 133 projects in Vietnam with total capital of 278.7 million U.S. dollars. Vietnam, on the other hand, has 23 investment projects in the province, worth 90.4 million U.S. dollars. According to Ma, Vietnam is a very important trading partner of Guangxi and Guangxi always attach great importance to the development of economic and trade cooperation with Vietnam.

Xu Qisong, commercial counsellor of the Chinese Embassy in Vietnam said that Vietnam and China have many things in common in geographic location and even in some cultural aspects.

At present, China is Vietnam's major export market of rice, coal, and natural rubber. Vietnam, on the other hand, imports machinery and equipment, textile raw materials, construction materials, home appliances and agricultural products from China.

In recent years, China's import from Vietnam has increased rapidly. In the first half of this year, China's import from Vietnam increased 58.6 percent year-on-year.

Xu said that the two countries are working closely to realize the trade target of 60 billion U.S. dollars by 2015.

 

[Rechoice]

economic relations is one component of politic relation. Chine is untrust partner, we don't let China use economical advantage to destroy our economy. Briefly, don't let to depend on any one in this world. So, politically talking in Hanoi that multi-partial is main line of Vietnam.

 

[chauism]

Trade fair to further expand China-Vietnam trade links

Xinhua, July 28, 2012

The 2012 China's Guangxi-Vietnam Trade Fair, that kicked off on Thursday last week, has ushered a more vibrant trade relations between Vietnam and China's Guangxi Zhuang Autonomous Region.

With 140 pavilions covering an area of 4,500 square meters, the four-day fair showcased over 1,000 different products, including electrical machinery, sugar production technology, construction materials, food, medicines and other high-tech products.

On display at the trade fair's outdoor pavilion were China-made heavy equipment such as trucks, excavators and cars.

"In recent years, the sector of new energy vehicles in China has developed strongly," Yang Bin, general manager of the China Sumpo Electricmotor Fabricate company, said.

Interviewed by Xinhua, Yang said that apart from being environment-friendly, using electric vehicle is also very economical. "The cost of using electric vehicle is only one-tenth of the cost of maintaining a motorcycle," Yang said.

Vietnam is known as the world's motorcycle capital with some 5 million motorcycles plying the roads of Hanoi alone.

"We hope that we can soon work with the Vietnamese government to bring our products to Vietnam. We plan to set up an assembly plant here not only to save on costs and also to promote local employment," Yang said.

Ma Jixian, deputy director-general of the Department of Commerce of Guangxi Zhuang Autonomous Region, said that the holding of the trade fair is an important step in promoting economic cooperation between Guangxi and Vietnam.

"Since 2006, Guangxi has held six Guangxi-Vietnam trades fair which have received very good response from local enterprises," Ma said.

"Thanks to the holding of these trade fair, the trade volume between Guangxi and Vietnam has kept increasing around 40 percent annually in the past few years and the value of contracts signed during trade fairs has also increased about 50 percent year-on- year," Ma added.

According to the Guangxi Department of Commerce, the commercial ties between Guangxi and Vietnam have been strengthened in recent years, with bilateral trade increasing by 47.7 percent over the 2010 figure to nearly 7.6 billion U.S. dollars in 2011.

Government statistics showed that trade turnover between Vietnam and Guangxi topped among ASEAN countries, accounting for 79.3 percent of the total trade between Guangxi and ASEAN.

As of 2011, Guangxi has invested in 133 projects in Vietnam with total capital of 278.7 million U.S. dollars. Vietnam, on the other hand, has 23 investment projects in the province, worth 90.4 million U.S. dollars. According to Ma, Vietnam is a very important trading partner of Guangxi and Guangxi always attach great importance to the development of economic and trade cooperation with Vietnam.

Xu Qisong, commercial counsellor of the Chinese Embassy in Vietnam said that Vietnam and China have many things in common in geographic location and even in some cultural aspects.

At present, China is Vietnam's major export market of rice, coal, and natural rubber. Vietnam, on the other hand, imports machinery and equipment, textile raw materials, construction materials, home appliances and agricultural products from China.

In recent years, China's import from Vietnam has increased rapidly. In the first half of this year, China's import from Vietnam increased 58.6 percent year-on-year.

Xu said that the two countries are working closely to realize the trade target of 60 billion U.S. dollars by 2015.

Can you post the biliteral trade growth over the years? I am just curious.

 

[Viet]

Hello, here are some numbers from the first half 2012:



http://www.vietnamimportexportnews....-vietnam-has-big-trade-deficit-with-asia.html
Vietnam has big trade deficit with Asia
Thứ sáu, 06 Tháng 7 2012 02:32

Vietnam's first-half trade with Asia, especially Southeast Asian countries and China, expanded a staggering 33 percent year-on-year to $61.7 billion but had a whopping trade deficit with Asia.

Vietnam Customs figures released on Wednesday show Vietnam's shipments to Asian countries amounted to $29.1 billion, up 40 percent from a year ago while its imports from those markets grew 30 percent to $39.8 billion. This left a trade deficit of $10.7 billion.

Two-way trade between Vietnam and its biggest trading partner China in the first half amounted to $15.7 billion, up 30 percent from a year earlier. The country's exports to China rose 60 percent to $4.6 billion but China remained the biggest exporter to Vietnam with total revenue of $11.1 billion, up 22.4 percent, resulting in a trade deficit of $6.5 billion.

Asean imports from Vietnam accounted for 30 percent of the country's total exports to Asia, at $6.55 billion, up 22 percent.

The first six months saw Vietnam shipping nearly two million tonnes of rice to Asean countries, down 14.7 percent, including Indonesia with 702,000 tonnes, the Philippines with 637,000 tonnes, and Malaysia with over 300,000 tonnes.

Vietnam imported $7.39 billion worth of gasoline, machines and equipments, plastic materials, computers, electronic equipments and others from Asean countries in January-June, according to Vietnam Customs.

 

[Viet]

Statistics of International Students in China in 2011

top ten countries:
Korea, 62,442, United States, 23,292, Japan, 17,961, Thailand, 14,145, Vietnam, 13,549, Russia, 13,340, Indonesia, 10,957, India, 9,370, Pakistan, 8,516 and Kazakhstan, 8,287.


Study In China

 

[Viet]

Less capital means more Chinese-sourced power
| TuoiTre news | Aug 10, 2012 15:59 pm

Capital shortages for electricity infrastructure could also be one of the reasons why the Electricity of Vietnam Group (EVN) has had to increase power purchase from other sources, including China, in the first seven months of this year.

The Ministry of Construction has said that work on many electricity projects of EVN and the Vietnam National Oil and Gas Group (PetroVietnam) cannot continue due to a capital shortage from investors, newswire Vnexpress reported.

In the first seven months of this year, EVN bought 36.78 billion kWh of electricity from outside providers, accounting for 56.1 percent of the total output, said EVN.
It bought 1.571 billion kWh from neighboring China, EVN said in its report on business and production performance in January-July.

In July alone, EVN’s electricity supply for households and production was sufficiently maintained at a total 10.38 billion kWh, of which, power production was 5.551 billion kWh, accounting for 53.5 percent.
Cumulatively, in the first seven months of this year, EVN’s electricity production and purchases were 69.097 billion kWh, rising 11.2 percent over the same period last year.
Specifically, electricity production was 30.315 billion kWh, making up 43.9 percent of its total output.

According to EVN, as expected, this month the load of the power system is able to reach up to 348 million kWh per day, and the largest capacity would range around 19,000-19,300 MW.
Also this month, the group’s electrical system operation target is to exploit hydropower plants such as Son La and Hoa Binh to ensure safe operation of the grid.

Well-paid for pricier power

Vietnam is currently buying electricity from China at the price of 1,300 dong/kWh (6.08 US cents), while the electricity price from local small hydropower plants is about VND800-900 dong/kWh; coal-fired thermo power plants at VND1,280-1,300 /kWh; and oil-fuelled power plants at VND5,500-6,000/kWh, said the Ministry of Industry and Trade in early June.
In 2011, Vietnam bought electricity from China at the price of 5.8 US cents/kWh.
With the new pricing mechanism, electricity prices from China are higher than the electricity prices from local small hydropower plants by VND400-500 /kWh.
Vietnam started buying electricity from China in 2004, and the annual electricity import volume from China has reached about five billion kWh.

In the first five months of this year, Vietnam’s electricity purchase from China was over 1.16 billion kWh, according to the ministry’s data.
An electricity purchase contract with China is signed once per five years, and the electricity price is calculated by Chinese partners.

Earlier, many local small and medium hydropower companies said that EVN is buying electricity from local plants at extremely low prices, causing losses and even bankruptcy for local businesses.
Therefore, in the ministry’s press conference in May, the ministry’s leader allowed EVN to increase the electricity buying price by an additional 5 per cent from 2011 for 10 small hydropower plants with capacity of less than 30 MW.
“Ongoing power projects account for 40 per cent in planning and 75 per cent of the capacity of the whole sector”, said the ministry.

A long way for a comprehensive competition

Vietnam aims to follow a competitive power market model by the end of 2022, said Minister of Industry and Trade Vu Huy Hoang.
EVN currently holds a monopoly in electricity transmission and distribution. Other groups such as PetroVietnam, Vinacomin and Song Da Corporation have joined EVN to generate electricity.
This monopoly affects the competitiveness of power plants and the motivation for development of the power sector and the interests of consumers, Hoang said, adding that the government has introduced a roadmap to abolish the monopoly in the electricity industry.
Vietnam is scheduled to begin operating a competitive model in electricity generation from July 1 of next year, after pilot programs are carried out.
Then, the nation seeks to carry out competitive wholesale and retail electric energy markets by 2014 and 2022, respectively.

Previously, EVN said that in 2010-2011, it had to buy electricity at high prices and use oil for electricity production due to increasing demand and unfavorable weather conditions. This brought a total loss VND11 trillion ($529 million) to EVN.
As of December 31, 2011, EVN’s total audited loss due to forex rate fluctuations was VND26 trillion ($1.25 billion).

 

[gpit]

Less capital means more Chinese-sourced power
| TuoiTre news | Aug 10, 2012 15:59 pm

Capital shortages for electricity infrastructure could also be one of the reasons why the Electricity of Vietnam Group (EVN) has had to increase power purchase from other sources, including China, in the first seven months of this year.

The Ministry of Construction has said that work on many electricity projects of EVN and the Vietnam National Oil and Gas Group (PetroVietnam) cannot continue due to a capital shortage from investors, newswire Vnexpress reported.
In the first seven months of this year, EVN bought 36.78 billion kWh of electricity from outside providers, accounting for 56.1 percent of the total output, said EVN.
It bought 1.571 billion kWh from neighboring China, EVN said in its report on business and production performance in January-July.
In July alone, EVN’s electricity supply for households and production was sufficiently maintained at a total 10.38 billion kWh, of which, power production was 5.551 billion kWh, accounting for 53.5 percent.
Cumulatively, in the first seven months of this year, EVN’s electricity production and purchases were 69.097 billion kWh, rising 11.2 percent over the same period last year.
Specifically, electricity production was 30.315 billion kWh, making up 43.9 percent of its total output.
According to EVN, as expected, this month the load of the power system is able to reach up to 348 million kWh per day, and the largest capacity would range around 19,000-19,300 MW.
Also this month, the group’s electrical system operation target is to exploit hydropower plants such as Son La and Hoa Binh to ensure safe operation of the grid.
Well-paid for pricier power
Vietnam is currently buying electricity from China at the price of 1,300 dong/kWh (6.08 US cents), while the electricity price from local small hydropower plants is about VND800-900 dong/kWh; coal-fired thermo power plants at VND1,280-1,300 /kWh; and oil-fuelled power plants at VND5,500-6,000/kWh, said the Ministry of Industry and Trade in early June.
In 2011, Vietnam bought electricity from China at the price of 5.8 US cents/kWh.
With the new pricing mechanism, electricity prices from China are higher than the electricity prices from local small hydropower plants by VND400-500 /kWh.
Vietnam started buying electricity from China in 2004, and the annual electricity import volume from China has reached about five billion kWh.
In the first five months of this year, Vietnam’s electricity purchase from China was over 1.16 billion kWh, according to the ministry’s data.
An electricity purchase contract with China is signed once per five years, and the electricity price is calculated by Chinese partners.
Earlier, many local small and medium hydropower companies said that EVN is buying electricity from local plants at extremely low prices, causing losses and even bankruptcy for local businesses.
Therefore, in the ministry’s press conference in May, the ministry’s leader allowed EVN to increase the electricity buying price by an additional 5 per cent from 2011 for 10 small hydropower plants with capacity of less than 30 MW.
“Ongoing power projects account for 40 per cent in planning and 75 per cent of the capacity of the whole sector”, said the ministry.
A long way for a comprehensive competition
Vietnam aims to follow a competitive power market model by the end of 2022, said Minister of Industry and Trade Vu Huy Hoang.
EVN currently holds a monopoly in electricity transmission and distribution. Other groups such as PetroVietnam, Vinacomin and Song Da Corporation have joined EVN to generate electricity.
This monopoly affects the competitiveness of power plants and the motivation for development of the power sector and the interests of consumers, Hoang said, adding that the government has introduced a roadmap to abolish the monopoly in the electricity industry.
Vietnam is scheduled to begin operating a competitive model in electricity generation from July 1 of next year, after pilot programs are carried out.
Then, the nation seeks to carry out competitive wholesale and retail electric energy markets by 2014 and 2022, respectively.
Previously, EVN said that in 2010-2011, it had to buy electricity at high prices and use oil for electricity production due to increasing demand and unfavorable weather conditions. This brought a total loss VND11 trillion ($529 million) to EVN.
As of December 31, 2011, EVN’s total audited loss due to forex rate fluctuations was VND26 trillion ($1.25 billion).

"Vietnam is currently buying electricity from China at the price of 1,300 dong/kWh (6.08 US cents)..."

This is very good price, definitely a friendly price by considering that ordinary people in Guangxi autonomous region have to purchase starting at 0.538 Yuan/kWh. 6.08 US cent is about 0.39Yuan.

Really don't know who negotiated the price on Chinese side - the Chinese are losing money (to buy "friendship"?)

 

[ahfatzia]

Trade deficit is not necessary a bad thing, especially for a smaller newly developing nation. It invests heavily to buy high tech and industrial equipments and builds factories and infrastructures in the beginning. Jobs are created for the meantime and in a few years these factories are producing more products and building more factories, hence create more jobs. And so on....

There is no need to afraid of trade deficits as long as you have the right people to oversee the big picture.


@ Rechoice

economic relations is one component of politic relation. Chine is untrust partner, we don't let China use economical advantage to destroy our economy. Briefly, don't let to depend on any one in this world. So, politically talking in Hanoi that multi-partial is main line of Vietnam.

That's a very conservative and nationalistic view of national economy and politic. As long as you have the right leadership in the country and everything is on paper in the open with competitive bidding from other nations their no need of the word 'trust' literally.

China is your closest neighbor with the biggest market in the area and one of the biggest in the world. You'll regretted it if you don't try to catch that momentum. Even big economies in Europe come begging for business deals. You can't be too proud these days when it comes to the livelihood of the average people.

 

[Rechoice]

Trade deficit is not necessary a bad thing, especially for a smaller newly developing nation. It invests heavily to buy high tech and industrial equipments and builds factories and infrastructures in the beginning. Jobs are created for the meantime and in a few years these factories are producing more products and building more factories, hence create more jobs. And so on....

There is no need to afraid of trade deficits as long as you have the right people to oversee the big picture.


@ Rechoice

economic relations is one component of politic relation. Chine is untrust partner, we don't let China use economical advantage to destroy our economy. Briefly, don't let to depend on any one in this world. So, politically talking in Hanoi that multi-partial is main line of Vietnam.

That's a very conservative and nationalistic view of national economy and politic. As long as you have the right leadership in the country and everything is on paper in the open with competitive bidding from other nations their no need of the word 'trust' literally.

China is your closest neighbor with the biggest market in the area and one of the biggest in the world. You'll regretted it if you don't try to catch that momentum. Even big economies in Europe come begging for business deals. You can't be too proud these days when it comes to the livelihood of the average people.

It reported in VN that Chinese suddenly stop importing from VN some materials and goods following recent tensions. It was big problem for little companies.

 

[Battle of Bach Dang River]

It reported in VN that Chinese suddenly stop importing from VN some materials and goods following recent tensions. It was big problem for little companies.

Indeed, exports to China are always at risk because of regulations dont like others. For example, watermelon from Vietnam which exported normally to China, suddenly they stop it in the border for tens of days, then the watermelon damaged but chinese authorities did not explain why they had asked to stop....

 

[ahfatzia]

It reported in VN that Chinese suddenly stop importing from VN some materials and goods following recent tensions. It was big problem for little companies.

That's why you should also have deals with other countries to spread out the risks of geopolitical retaliations which happen all the times. That's not fair but that's the way the world is. You just have to bite the bullet and work hard to build your country strong and by then you can name you own price, so to speak.

 

[Viet]

"Vietnam is currently buying electricity from China at the price of 1,300 dong/kWh (6.08 US cents)..."

This is very good price, definitely a friendly price by considering that ordinary people in Guangxi autonomous region have to purchase starting at 0.538 Yuan/kWh. 6.08 US cent is about 0.39Yuan.
Really don't know who negotiated the price on Chinese side - the Chinese are losing money (to buy "friendship"?)

You say, Vietnam pays the same like the ordinary people in Guangxi. Do not understand your point why China makes loss here?
Vietnam is currently contructing many Nuclear Power Plants. Maybe we will sell some surplus to China with a friendly price when completed

Anyway I am happy to see that both countries have their power grids interconnected, so one can sell/buy their surplus or deficit.

 

[Viet]

One of the reasons why I started this thread is to assess the economic costs if it comes to an armed confrontation between Vietnam and China. If a war breaks out, everything will come to a halt.