Vietnamese goods exported through the Kim Thành border gate in the northern province of Lào Cai. — Photo vneconomy.vn

BEIJING — Economic ties between Việt Nam and China have expanded at an unprecedented pace in recent years, becoming a key driver of cooperation between China and the Association of Southeast Asian Nations (ASEAN), according to Professor Cui Hongjian from the Academy of Regional and Global Governance at Beijing Foreign Studies University.

Việt Nam is not only a major trading partner but also a vital link in the regional supply chain.

The professor noted that in the two decades since the signing of the China–ASEAN Free Trade Area (CAFTA) agreement, bilateral trade had grown rapidly. 

From over US$40 billion in 2000, China–ASEAN trade surged nearly 25-fold to $980 billion in 2024, and is expected to exceed $1 trillion in 2025.

Việt Nam stands out among ASEAN members thanks to its dynamic economy and rapid industrialisation, according to the professor.

Bilateral trade between Việt Nam and China reached $260 billion in 2023, accounting for roughly 25 per cent of total China–ASEAN trade.

Việt Nam has become an indispensable partner in China’s production and trade network across Southeast Asia.

Việt Nam possesses numerous advantages, including a population of nearly 100 million, a young and cost-effective workforce and a fast-growing export-oriented economic model. 

The country is deeply integrated into global supply chains in electronics, textiles and garments, component manufacturing, wood processing and, more recently, renewable energy.

The professor noted that Việt Nam’s per-capita GDP had grown to around $4,500 over the past decade, which he called “a remarkable achievement”. 

This progress was inseparable from regional cooperation frameworks such as CAFTA and the Regional Comprehensive Economic Partnership (RCEP), which strengthened infrastructure connectivity, trade policy coordination and business collaboration between Việt Nam and China, creating favourable conditions for bilateral trade to accelerate.

Cui also highlighted the structural complementarity between the two economies. Việt Nam typically undertakes labour-intensive assembly stages, while China supplies raw materials, high-tech components and supporting infrastructure. 

This is a mutually beneficial two-way relationship that will continue to deepen under the RCEP, the world’s largest unified market, according to Cui.

Việt Nam has also become a priority destination for international investors, particularly in electronics, high technology, logistics, energy and textiles. However, infrastructure remains a major bottleneck.

The professor also underscored the potential for further cooperation between the two nations in infrastructure development, especially after the recent state visit to Việt Nam by Party General Secretary and President of China Xi Jinping, during which both sides agreed to accelerate cross-border railway connectivity. 

Road transport, seaports, energy and logistics are also seen as promising drivers for future economic growth. VNS