Import-export to China: The Door is Wide Open, But Not as Easy as Before

Hanoi – According to a representative from the Import-Export Department (Ministry of Industry and Trade), Vietnam has become the 8th largest trading partner of China globally. It is also China's 7th largest export market and 10th largest import market, ranking 2nd in ASEAN after Malaysia and ahead of Thailand.

Vietnam: A Major Trading Partner of China

Hanoi – According to a representative from the Import-Export Department (Ministry of Industry and Trade), Vietnam has become the 8th largest trading partner of China globally. It is also China's 7th largest export market and 10th largest import market, ranking 2nd in ASEAN after Malaysia and ahead of Thailand.

In 2018, total trade between Vietnam and China reached 106.7 billion USD, with exports accounting for 41.3 billion USD, a 16.6% increase compared to 2017.

Vietnam's key export products to China continued to maintain a strong growth rate. Notably:

Phones and components reached 9.38 billion USD, up 31.1%.
Computers, electronic products, and components reached 8.36 billion USD, up 21.9%.
Textile fibers reached 2.2 billion USD, up 8.5%.
Fruits and vegetables reached 2.78 billion USD, up 5.1%.
Cameras, camcorders, and components reached 2.8 billion USD, up 34.1%.
Footwear reached 1.49 billion USD, up 30.8%.
Exports of agricultural and aquatic products to the Chinese market have maintained a stable proportion in recent years. In 2018, rice exports to China reached 638.3 million USD, rubber: 1.37 billion USD, fruits and vegetables: 2.78 billion USD, and seafood: 995.9 million USD.

Removing Barriers to Boost Formal Exports

The Ministry of Industry and Trade acknowledges the favorable conditions for exporting agricultural and aquatic products to China. However, challenges remain as China has become a demanding market with high-quality standards.

Furthermore, China has invested in constructing and upgrading large-scale quality inspection and quarantine facilities in border areas. Equipped with state-of-the-art technology comparable to those in developed countries like the US, Japan, and the EU, these facilities are expected to require all imported food shipments to be accompanied by export certificates from October 1, 2019.

With China's current management trends, Vietnam's agricultural and aquatic exports to this market will face higher quality barriers and increased competition from other ASEAN countries.

This trend indicates that informal exports to China will encounter difficulties in the future. Vietnam needs to promote market opening for formal exports, conduct thorough market research, identify the specific needs and signals of the Chinese market for each commodity, and recognize Vietnam's competitive advantages. This will enable the organization of production and processing to meet market requirements for quality and food safety.