China, Vietnam anticipate two-way trade at $60bn by 2015

15 Oct '13

2 min read

Chinese Premier Li Keqiang and Vietnamese Prime Minister Tan Dung agreed to lift up the two-way trade value between the two countries to US$ 60 billion by 2015, while implementing practical solutions to keep trade balanced, during their talks in Ha Noi.

China is a major supplier of yarn and fabric for Vietnam’s flourishing apparel industry, while only a fraction of Vietnamese apparel exports make their way to the Chinese market.

With US$ 2.1 billion worth of exports, China continued to be the leading supplier of fabric to Vietnam during January-July 2013 period. China’s fabric exports to Vietnam increased by 26.45 percent compared to the corresponding period of last year, according to Vietnam Customs statistics.

Additionally, Vietnam has abundant and low-cost labour, which makes it attractive for Chinese investors. By August 2013, China had invested US$ 4.8 billion in 915 projects in various provinces and cities of Vietnam.

During the visit of the Chinese Premier, the two countries signed an agreement on opening trade promotion agencies in respective countries, and a memorandum of understanding on construction of a cross-border economic cooperation zone, among others.

The bilateral trade between China and Vietnam was US$ 41 billion in 2012, and the two-way trade is estimated to have grown at around 20 percent year-on-year during the first eight months of the current year.

The decision to boost bilateral trade between China and Vietnam assumes importance in view of Vietnam being one of the 12 countries currently negotiating the Trans-Pacific Partnership (TPP) agreement. The agreement would provide tax benefits to Vietnamese goods in the other TPP-member countries, including the US.

Fibre2fashion News Desk - India

More Textiles News - Vietnam...