Vietnam and Chongqing Logistics Enterprises Reached A Long-term Cooperation丨Insights

Chongqing- China and Vietnam will strengthen and deepen their comprehensive strategic cooperative partnership to promote bilateral ties onto a healthy and stable development path, said a joint statement issued on November 1.

The statement announced during the official visit of General Secretary of the Communist Party of Vietnam Central Committee (CPVCC) Nguyen Phu Trong to China says Vietnam and China are good neighbors and friends, and the two countries are committed to people's well-being, national prosperity, and the noble cause of peace and development of humanity.

Remarkably, Chongqing, a municipality in Southwest China, appeared in the statement. According to the report, China supports the Vietnamese trade promotion offices set up in Chongqing and Hangzhou to play a positive role in economic and trade cooperation between the two countries and is willing to create convenient conditions for Vietnam to host additional trade promotion offices in China. 

Chongqing Economic and Trade Cooperation Matchmaking Conference. (Photo provided to iChongqing)

Vietnam is a vital exit port in southwest China, complementing each other's industrial advantages with Chongqing. As early as 1999, Chongqing motor products represented by Lifan and Zongshen flooded into Vietnam, occupying a particular market share. 

In 2015, Vietnam established the Trade Promotion Office in Chongqing, marking the first trade representative office of Vietnam in China. The report shows that this move was made because Chongqing boasts a unique location advantage and a solid foundation for economic and trade cooperation with Vietnam as the only municipality in western China.

Since its establishment, the office has facilitated business and investment cooperation opportunities for enterprises in Chongqing as well as neighboring provinces and cities, helping Vietnamese companies to export their goods to the Chinese market in a wide array of fields, such as electronic parts, coffee, agricultural products, milk, and seafood. 

The Chongqing cross-border highway shuttle bus linked to the Longbang Port in Guangxi opened a new channel from Chongqing to Vietnam. (iChongqing file photo)

Invest in Vietnam with critical projects like motor equipment 

"Currently, the logistics enterprises of Vietnam and Chongqing reached a close long-term cooperation," said Nguyen Tuan Ngoc, an official of the Trade Promotion Office in Chongqing. "We help Vietnamese enterprises to participate and make full use of the New International Land-Sea Trade Corridor (ILSTC) and China-Europe Railway Express."

Thanks to the open international corridor, Vietnam has become a crucial partner for Chongqing's cross-border logistics. In March 2022, the first ILSTC China-Vietnam (Guoyuan Port-Hanoi) international freight train departed from Chongqing Guoyuan Port to Haiphong Industrial Zone in Hanoi, the capital of Vietnam.

It used to take more than 20 days for cargo to be shipped from Chongqing and Sichuan in Southwest China to Vietnam via ports in East China. But now, Products made in Chongqing, like engines, tires, and printing paper, can arrive in Vietnam in about four to five days. 

Besides, the office recommended related companies invest in Vietnam with critical projects. Data shows that by 2020, nearly 30 Chongqing enterprises have invested in Vietnam to set up factories with more than 35 million U.S. dollars. The primary investment projects are motor equipment and agricultural machinery. 

In March 2022, the first China-Vietnam (Guoyuan Port-Hanoi) international freight train departed from Chongqing Guoyuan Port to Haiphong Industrial Zone in Hanoi, the capital of Vietnam. (Photo provided to iChongqing)

From January to June this year, the imports and exports between Chongqing and the ASEAN totaled 66.29 billion yuan, a year-on-year increase of 5.2%, statistics show.

The ASEAN has become Chongqing's largest trading partner for three consecutive years, while Vietnam accounts for more than 40% of the total trade volume between Chongqing and ASEAN countries. 

Despite the negative impact of the COVID-19 pandemic, Vietnam and China have maintained a high growth rate in economic and trade cooperation. "The cooperation in the prevention and control of the pandemic is a major highlight of the two countries cooperation, and China has provided large amounts of vaccines and medical supplies to Vietnam for assistance," said Nguyen Tuan Ngoc. 

He said in the future, the Vietnam Trade Promotion Office in Chongqing would further promote trade promotion activities between Vietnam and southwest China, especially Chongqing. It will also help companies of Vietnam and Sichuan-Chongqing to find partners to expand markets and participate in expositions and commodity fairs held by the two countries.