The event was jointly held by the HCM City branch of the Vietnam Chamber of Commerce and Industry (VCCI-HCM) and the Chinese People’s Political Consultative Conference (CPPCC) committee of Shandong province.
According to VCCI-HCM Deputy Director Nguyen The Hung, Vietnam-China economic and trade relations have been developing strongly over the past few years, with China currently being Vietnam’s largest trade partner. Two-way trade reached US$71.6 billion in 2016, with Vietnam exporting approximately US$22 billion worth of commodities to China and importing roughly US$50 billion of goods from the country.
Vietnam’s key export items include crude oil, coal, computers and accessories, rubber, rice, vegetables, fruits and seafood, while its main imports are machinery, equipment, tools, garment materials, leather and footwear, iron and steel, and fertilizer, Hung noted.
From the local perspective, he said that HCM City is a strategic economic centre in Vietnam and is an attractive investment destination for foreign companies, including those from China. In addition, with its population advantage and dynamism, HCM City is also a consumer market with huge potential for development. The VCCI-HCM and the Qingdao authorities (Shandong) have signed a memorandum of understanding on economic cooperation, which is a premise for the two cities to accelerate trade and investment exchange in the years to come.
Commenting on the business and investment climate in Vietnam, Wong Chen Wei, a representative from the Deloitte Vietnam Company, stated that Vietnam has issued many incentive policies in order to attract foreign investors, such as the reduction of the corporate income tax rate. Current tax rates in Vietnam are 5-30% lower than the tax system in China. Apart from the groups of industries prioritised for development, including supporting industries, modern technology, the manufacturing of components, automobile assembly, electronics, and garments and footwear, foreign investors have also been provided with favourable conditions in terms of investment procedures and the land fund for factory construction..
According to the vice-chairperson of the Shandong CPPCC committee, Vietnam is an important economic and trade partner of China as a whole and Shandong province in particular. Two-way trade between Vietnam and Shandong reached US$28.5 billion last year.
She added that Shandong is one of the most developed provinces in China, with its strength lying in machinery manufacturing, iron and steel, equipment and agricultural production, and with a demand for electronic components, fresh fruits, dried fruits, rubber and oil from Vietnam. With their complimentary advantages, there remains room for Shandong and Vietnam as a whole, and HCM City in particular, to boost cooperation and increase the trade exchange value in the time ahead.
