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Border trade: Only import and export through China had positive growth 

 Friday, May 17,2024

AsemconnectVietnam - Out of total import and export value of goods through Vietnam's land border gates in 2023, only China record positive growth.

The information was given in the 'Vietnam Import-Export Report 2023', announced by Ministry of Industry and Trade this morning (May 16), in Hanoi.
Vietnam - China border trade in 2023 reaches 42.7 billion USD, an increase of 63.9% compared to 2022
In Vietnam - China land border trade route, Vietnam Import and Export Report 2023 clearly states that total import and export value of goods through Vietnam's land border gates to China reached 42.7 billion USD, an increase of 63.9% compared to 2022. Of which, export reached 17.2 billion USD, an increase of 342.4%; Imports reached 25.5 billion USD, down 7.3% compared to 2022.
According to statistics from General Department of Vietnam Customs, structure of goods exported, traded and exchanged across the Vietnam - China border in 2023 is still mainly rubber and rubber products, agricultural products, cassava chips and cassava starch, paddy, rice, sugar, all kinds of fresh fruits, seafood, peeled wood, etc. ; Main imported goods include: machinery and equipment, electricity, fertilizers of all kinds, coke, tobacco leaf materials, fresh fruit, etc.
To achieve those results, departments, branches, functional forces at border gates and related units have actively, proactively and flexibly coordinated in border management, ensuring stabilize security and order in border areas; Closely coordinate to monitor, capture and exchange information on situation, border management policies, border gates, import and export policies and regulations of Chinese side, thereby promptly handling, resolving arising cases well, limit damage to enterprises and avoid goods congestion at border gates.
Export traders have gradually met Chinese regulations such as regulations on traceability, growing area codes, packaging facilities, labeling,...
Besides advantages, Vietnam - China border trade activities still have some difficulties such as: Warehouse infrastructure, goods inspection and supervision at some border gates such as Hoanh Mo, Bac Phong Sinh, Bac Luan II and Tan Thanh do not meet requirements and do not have a specialized warehouse system to store goods or preserve them according to special regimes (such as chemicals and frozen goods). There was a time when flow of goods and vehicles increased dramatically, leading to an increase in number of vehicles at the border gate area.
Recognized in Lang Son province, the implementation of building a "Model Border Gate" model at Huu Nghi - Huu Nghi Quan border gate pair and operating the "Green Channel" for quick customs clearance of agricultural products at Tan Thanh - Po Chai has not been implemented in spirit of Memorandum of Understanding signed between the two parties. The opening and upgrading of Binh Nghi - Binh Nghi Quan border gate pair (marker 1036), including road clearance through mark 1035, has not yet been agreed upon for implementation. Operating time of Chi Ma - Ai Diem border gate pair has not yet been agreed upon by authorities of two provinces and regions to be added to Border Gate Agreement and the Vietnam - China land border gate management regulations.
Infrastructure at some border gates is in process of investment and construction, there is no integrated control house yet, so it is difficult to arrange functional forces to perform tasks as prescribed in Decree No.112/ 2014/ND-CP dated November 21, 2014 of the Government regulating management of land border gates and Decree No.34/2023/ND-CP dated June 16, 2023 of the Government amending and supplementing some articles of Decree No.112/2014/ND-CP.
Vietnam - Laos border trade in 2023 reached 1.57 billion USD, down 0.63% compared to 2022
Not as exciting as border import and export activities with China, Vietnam - Laos border line in 2023 have poorer results than in 2022.
Specifically, according to statistics from General Department of Vietnam Customs, in 2023, total import and export value between Vietnam and Laos through border gates reached 1.57 billion USD, down 0.63% compared to for 2022. Of which, export reached 487,073 million USD, down 13.46%; Import reached 1.08 billion USD, an increase of 5.88% compared to 2022.
According to Vietnam Import-Export Report 2023, structure of goods exported, traded, and exchanged across the Vietnam - Laos border in 2023 is still mainly machinery, equipment, tools, other spare parts, and fruit and vegetable goods, textile fibers and fibers of all kinds, animal feed and raw materials, other means of transport and spare parts, petroleum,...; Main imported goods include: Corn, ores and other minerals, wood and wood products, computers, electronic products and components, rubber, all kinds of fertilizers, all kinds of coal,...
Taking advantage of incentives from Bilateral Trade Agreement and Vietnam - Laos Border Trade Agreement has contributed to promoting trade in goods and services, as well as developing economic connections between the two countries. Two sides have strengthened active cooperation in border trade development, organized conferences to meet, discuss, exchange lessons learned and coordinate to exchange documents and information; At the same time, we support each other in monitoring and managing border trade, this is a favorable trade condition for the people and enterprises of the two countries.
Although border geography between Vietnam and Laos is high mountainous and complex terrain, due to cooperation policies and special traditions of friendship, it has become a driving force for connection between the two peoples. Connecting roads along the border corridor have been built, many border gates along border have been developed and upgraded to meet not only traffic and family visits but also a path for exchange relations, sales of goods. The provinces have proactively built a coordination mechanism between province and province, creating favorable conditions for information exchange and solving problems when they arise.
Although some provinces do not have border gate markets, in general border trade, especially exchange and buying and selling of goods by people along the border, is happening vibrantly and is growing more and more. Organization of goods fairs and exhibitions has created favorable conditions to introduce and encourage each country's goods to enter each other's markets. Coordination in inspection, testing and combating smuggling and trade fraud between the two countries in the border area has achieved many results; has detected and handled many cases of violation of laws on cross-border import and export, creating favorable conditions for development of border trade activities.
Besides achieved results, Vietnam - Laos border trade still has some difficulties such as: Policies to attract investment in production, processing, infrastructure, transportation, and logistics in the region. The border gate is not effective. Infrastructure development, especially construction of roads connecting to border gates and inter-district roads in some areas is still slow, not meeting potential and needs of trading and exchange activities, circulation of goods in border areas.
Goods produced are on a small scale, mostly unprocessed raw materials, seasonal, number of products is small, low value, no centralized production areas have been formed, no standards have been applied, traceability, branding, production-consumption chain has not yet been formed.
Notably, due to characteristics of cross-border trade and habit of using cash in payment, demand for payment and currency conversion in border areas is still low, causing difficulties for commercial banks when opening branches and transaction offices at border gates because revenue cannot cover costs.
In addition, collection of fees, parking fees, and vehicles transiting across the border between the two countries in some places is still unclear and inconsistent.
Vietnam - Cambodia border trade in 2023 reaches 6.14 billion USD, down 23.7% compared to 2022
In 2023, Vietnam Import-Export Report 2023 recorded total value of import and export of goods between Vietnam and Cambodia through land border gates reaching 6.14 billion USD, down 23.7% over the year of 2022, in which, exports reach 2.87 billion USD, down 16.3%; Imports reach 3.27 billion USD, down 29.2% compared to 2022.
In terms of product structure, Vietnam mainly exports to Cambodia following items: textiles and garments, iron and steel of all kinds, textile and garment raw materials, footwear, etc. Vietnam mainly imports the following items: rubber, cashew nuts,...
Legal system, mechanisms and policies on trade and bilateral border trade are increasingly being improved and are being reviewed and adjusted. Two sides successfully signed Vietnam - Cambodia Border Trade Agreement on November 8, 2022. Agreement is forecast to contribute to promoting growth of bilateral trade turnover, creating favorable conditions and further promoting trade relations between the two countries in border areas with goal of improving people's lives, especially residents living in border areas. At the same time, the agreement is expected to contribute to sustainable economic development of each country, on principle of equality and mutual benefit.
Infrastructure serving border trade activities is increasingly being invested and developed by the Governments of the two countries. Roads in border areas, transport yards and freight forwarding have gradually been upgraded. Trade promotion work with Cambodian market is implemented regularly and continuously both domestically and in Cambodia.
However, there are still some difficulties because Vietnam's exported goods to Cambodia have a similar structure to those of Thailand and China and are subject to fierce competition in quality, design and price.

L. Giang
Source: Vitic/ congthuong.vn
 

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