Chongqing - For three consecutive years, Vietnam has solidified its position as Chongqing's largest trading partner within the ASEAN region, bolstered by the China-Vietnam cross-border train that created a fast lane linking Chongqing with ASEAN. 

This growing partnership between Vietnam and Chongqing has opened up new avenues for trade and cooperation, benefiting both economies. As trade between the two regions booms, more efficient and convenient cross-border freight routes will be created.

China-Vietnam freight train brings business opportunities

In March 2022, the first China-Vietnam international freight train of the New International Land-sea Trade Corridor (ILSTC), a trade and logistics passage developed by the western Chinese provinces and Singapore, departed from Chongqing Guoyuan Port to Haiphong Industrial Zone in Hanoi, the capital of Vietnam. 

With Chongqing as the transport hub, the ILSTC integrates rail, maritime, and road transportation, which connects southwestern China with the rest of the world via the Qinzhou Port in Guangxi. There, goods are shipped to ports around the globe.

Previously, goods from Chongqing to Vietnam took an average of 20 days to travel using water transport to Shanghai. The China-Vietnam international freight train has revolutionized cargo transportation, reducing shipping time to five days for products made in Chongqing, such as engines, tires, and printing paper, to reach Vietnam.

This corridor has also resulted in lowered transportation costs, offering businesses in Chongqing and ASEAN easier access to each other's markets, and has played a pivotal role in strengthening economic ties and promoting bilateral investments. 

More and more Chinese companies, including Chongqing, flock to Vietnam thanks to its robust economic development, competitive manufacturing sector, and favorable labor costs.  

In March 2022, the first China-Vietnam international freight train departed from Chongqing Guoyuan Port. (Photo/ILSTC)

Vietnamese companies are keen on the Chongqing logistics market

Nguyen Xuan Hung, vice president of the Hanoi Logistics Association (HNLA), shared valuable insights on the logistics trade and channel cooperation between China and Vietnam in an exclusive interview with Bridging News on July 21. 

He said that Vietnam's proximity to China has resulted in shorter transportation distances and more competitive prices. Notably, the association has placed great importance on cooperating with logistics companies in Guangxi and Chongqing, giving their essential contributions to the ILSTC.

He emphasized Chongqing's pivotal role as the center of southwest China and a critical starting point for the China Railway Express and the ILSTC. 

Group photo of Nguyen Xuan Hung, vice president of Hanoi Logistics Association (HNLA) (fourth from left), with interview group. (Photo/HNLA)

With the implementation of the RCEP agreement, trade between Chongqing and ASEAN countries has surged, leading to increased traffic on the ILSTC trains departing from Chongqing to Vietnam, Laos, Thailand, Myanmar, and other neighboring countries. 

Notably, Vietnamese logistics companies are keen on the Chongqing logistics market and are exploring opportunities to utilize Chongqing as a hub transfer station. Expanding international markets, they aim to efficiently supply goods to third-party countries, such as Pakistan, Uzbekistan, and Turkey.

Nguyen expressed hope that by leveraging Chongqing's gateway, they can better understand the demand for import and export commodities from western China to Vietnam. Such insights will foster the circulation of more diverse products in the international market, boosting economic growth and cooperation between the two countries.