Building a sustainable agricultural product supply chain between Vietnam and China

Deputy Minister Tran Thanh Nam and the Ministry of Agriculture and Rural Development of Vietnam held a meeting with Mr. Hua Hien Huy, Vice Chairman of Zhuang Autonomous Region on May 30, in Nanning City, Guangxi Province, China. The meeting was also attended by leaders of provincial departments and branches on agricultural development cooperation, and agricultural trade promotion between Vietnam and Guangxi.

Improving the process of customs clearance

At the beginning of his speech, Mr. Hua Hien Huy mentioned Party General Secretary Nguyen Phu Trong's official visit to China last year.

“General Secretary Nguyen Phu Trong paid an official visit to China at the invitation of General Secretary Xi Jinping in late October and early November last year. The two leaders discussed the development direction for the relationship between the two countries in the new era, affirming the comprehensive strategic relationship between Vietnam and China", said Mr. Hua Hien Huy.

According to Mr. Hua Hien Huy, Guangxi  is the only province in China that contain both land and waterway connections with Vietnam. Namely, the province houses 8 districts and 3 cities that share a 696-kilometer border with Vietnam. Additionally, the province is equipped with seaports, river ports, roads and airports.

Guangxi is also a province with a large natural area and developed agriculture. Guangxi's agricultural products such as sugar cane, fruit, mulberry, cow's milk, tea, seafood, and pork are among the most popular goods in China. High-quality agricultural products such as Guilin snail noodle soup, Wuzhou Luc Bao tea are famous around the world.

Guangxi's total agricultural production value reached 427 billion yuan in 2022, ranking 9th in China. The province became a famous vegetable, fruit, and sugar producing region, with multiple export markets around the world.

The Secretary of the Guangxi Party Committee led a delegation to visit Vietnam in March this year. The delegation highlighted the importance of effective customs clearance, and the cross-border agricultural product supply chain between Vietnam and China. These aspects will contribute to expanding the bilateral trade economy to greater results.

Guangxi province has effectively utilized its geographical advantages to promote trade with Vietnam, and achieved outstanding results.

As of 2022, Vietnam has been Guangxi's largest trading partner for 24 consecutive years. The total value of Vietnamese agricultural product exports to Guangxi reached over 14 billion yuan in 2022. Between January and April 2023, bilateral agricultural trade reached over 4 billion yuan, which is an increase of 40% over the same period.

Mr. Hua emphasized that Guangxi province supports business in constructing high-quality agricultural seed testing stations. These testing stations imported over 27 varieties of high quality seeds for sample study in 2022.

Furthermore, Guangxi province has collaborated with Vietnam's border provinces such as Lang Son, Cao Bang, and Quang Ninh to promote disease control on animals and plants.

Guangxi highly regards the 14 local businesses investing in Vietnam. On the other hand, commercial and agricultural zones are under construction in the two border cities of Dongxing and Pingxiang.

China and Vietnam have cooperated in stocking aquatic products in the Gulf of Tonkin since 2017. Accordingly, China has released more than 230 million seeds to regenerate aquatic resources. On May 6, Mr. Hua Hien Huy and Mr. Nguyen Quang Hung, Deputy Director of the Directorate of Fisheries of Vietnam, have both participated in this activity to ensure the development of fisheries in the Gulf of Tonkin.

Mr. Hua also addressed the issue of stable agricultural trade development, with a focus on exporting high-quality Guangxi-made agricultural products to Vietnam.

Mr. Hua expressed his wish to further develop fisheries while simultaneously emphasizing resource regeneration in the Gulf of Tonkin with relevant Vietnamese agencies. Additionally, Guangxi expects the Vietnamese government to jointly support local businesses in developing agricultural product processing, with an emphasis on deep processing. Guangxi is committed to supporting Vietnamese businesses looking to invest in agricultural products in this province.

Proposal to establish a Vietnam - Guangxi Agricultural Products Association

Deputy Minister Tran Thanh Nam emphasized the importance of resuming the agricultural product supply chain after the Covid-19 pandemic, which can elevate bilateral trade between the two countries.

“Guangxi province is the main gateway from Vietnam to China. We need to further develop our traditional relationship. We hold Guangxi's agricultural and forestry achievements to high regards. The northern border provinces of Vietnam have strengths in wood and non-timber products, so cooperation between the two parties is crucial", remarked Deputy Minister Tran Thanh Nam.

According to him, in addition to official visits between the leaders of the two countries, leaders of border provinces and other localities also regularly visit China.

In response to Guangxi's comment, Deputy Minister Tran Thanh Nam proposed to promote cooperation in science and technology exchange between the two countries.

“The Ministry of Agriculture and Rural Development of Vietnam has 4 universities and 28 colleges, all of which have established cooperation programs with institutions in Guangxi. Multiple programs on breeding and mechanization have been deployed. On this occasion, I would like to propose the two countries to actively exchange science and technology."

According to Deputy Minister Tran Thanh Nam, two of Guangxi's key areas of science and technology are breeding and mechanization, and the processing of wood products.

“In addition to programs for students to study abroad, we also hope that Guangxi will facilitate the provision of scholarships for officials under the Ministry to study languages ​​and agricultural research.”

The Deputy Minister proposed to build a Center for Innovation & Creativity, Sustainable Agricultural Development based on the connected system of universities between Vietnam and China. This site will encourage creativity in students and agricultural officials from both countries.

In addition, Deputy Minister Tran Thanh Nam wishes to establish a sustainable supply chain under the supervision of local governments, to minimize the price increase caused by intermediaries. 

The cold storage chain requires close coordination between the governments and enterprises to ensure quality. Regarding livestock production, Deputy Minister Tran Thanh Nam suggested Guangxi businesses to invest in constructing high-tech breeding and processing zones for select breeds of pigs, chickens and cows. “Vietnam's livestock products have been exported to various countries around the world such as Korea, Japan and Russia. We hope to coordinate closely with the Department of Animal under the Ministry of Agriculture of China to promote the livestock export to this market in the near future.”

The Deputy Minister suggested Guangxi province to support businesses in the construction of a high-tech cattle processing zone at the border.

“Both countries have extensive markets, and we can complement each other. Moreover, I hope that Guangxi will open new fruit and vegetable import-export areas at the border gates", said Deputy Minister Tran Thanh Nam.

Deputy Minister Tran Thanh Nam proposed to organize exclusive fairs for Vietnam's provinces bordering Guangxi. "The Ministry of Agriculture coordinate with Guangxi province to alternately organize annual events. These events will help businesses build supply chains in service of import and export."

Lastly, the Deputy Minister proposed the establishment of a Vietnam - Guangxi Agricultural Products Association as an official channel for mutual businesses development.