VOV 13/8/2009 - Export-import activities between Vietnam and China have recently showed signs of recovery despite the impact of the global economic downturn.

A Beijing-based Voice of Vietnam (VOV) correspondent talked to the trade counselor from the Vietnamese Embassy in China, Nguyen Duy Phu, about the issue.

Reporter: Could you brief us on Vietnam-China trade ties in recent times?

Mr Phu: According to statistics provided by Chinese customs, in the first half of this year, two-way trade turnover between Vietnam and China reached more than US$8.5 billion, down 18.4 percent. Vietnam’s exports to China hit over US$ 2.1 billion, up 3 percent while its imports reached more than US$6.4 billion, down 23.7 percent. Vietnam’s import surplus was US$4.3 billion, down 32.8 percent compared to the same period last year.

In spite of the global economic meltdown, Vietnam’s exports to China have shown promising signs in the first half of this year with a growth rate of 3 percent.

In addition, Vietnam’s exports of plant products to China have also seen a sharp increase. In the last six months, Vietnam earned US$416.8 million from exporting such plant products as fruit and cassava to China, an increase of 52.6 percent and accounting for up to 19.8 percent of the country’s total export earnings compared to the corresponding period last year.

Reporter: What is the Ministry of Industry and Trade (MoIT)’s assessment of the Chinese market? How have relevant agencies from both countries cooperated to ensure safety and quality of products as well as consumers’ interests?

Mr Phu: The Chinese market is seen as a potential and lucrative market for Vietnam. Therefore, a score of practical measures have been taken to promote bilateral trade links.

Most recently on July 24, MoIT Minister Vu Huy Hoang chaired a conference with representatives from 7 northern border provinces to discuss measures aimed at expanding trade ties with China.

The same day, another conference with more than 150 entrepreneurs and representatives from relevant agencies was also held by the MoIT to find solutions to push up exports to China.

We are also fully aware of the importance of the safety and quality of products in import-export activities between Vietnam and China. So far, both countries’ governments have signed a bilateral agreement on inspection and quarantine of animals and plants imported or exported. The relevant agencies from Vietnam and China have signed bilateral agreements and memoranda-of-understanding on quality standards, cross-border medical checks, and testing the health safety of imports and exports.

In recent times, both Vietnam and China have joined hands to remove many thorny problems in a timely manner to facilitate bilateral trade and protect the interests of businesses.

However, both countries still need to manage product quality starting right with the production stage, using modern processes, and build recognizable quality standard systems for related imports and exports. They should also work out a warning information system and take preventive measures regarding the safety and quality of imported and exported goods.

Reporter: What should Vietnam do to improve its competitiveness capacity and better penetrate the Chinese market?

Mr Phu:  Vietnam’s trade deficit remains a big issue in two-way trade between Vietnam and China, according to the Ministry of Industry and Trade. Vietnam has to fulfil several tasks to change the situation. First and foremost, Vietnam needs to change the structure of exports to China, which now mainly comprises farm produce, raw materials, and minerals.

Second, it’s essential to raise the quality of exports by advanced quality standard systems that importing countries require and to pay due attention to designs, and packaging. Third, there’s a need to promote Vietnamese products, especially staples.