Kunming Department of Customs made three proposals to Vietnam

Deputy Minister of Agriculture and Rural Development Tran Thanh Nam held a meeting with Kunming Department of Customs on June 1, in Yunnan, China to discuss agricultural trade between Vietnam and Yunnan province.

Three proposals

“We propose that relevant agencies from both countries meet at least once a year. We believe that Vietnam and China should promote their geographical advantages and learn from one another. We must promote the spirit of cooperation for mutual benefits as well as expand the field of cooperation," said Mr. Can Dien Dung, Director of Kunming Department of Customs - General Administration of Customs of China.

Mr. Can affirmed that Vietnam's role as China's crucial trading partner. The General Administration of Customs of China and its agencies are actively seeking means to support business from both countries in import and export.

Mr. Can proposed Deputy Minister Tran Thanh Nam and related agencies of Vietnam to increase the number of Authorized Economic Operators (AEO).

He also suggested Vietnam to implement the one-stop import-export cooperation mechanism - an advanced model that has been widely recognized by many countries and financial institutions around the world.

Deputy Minister Tran Thanh Nam is in full agreement with Mr. Can's proposals: “Three years after the pandemic, it is necessary for Vietnam to visit and discuss cooperation activities in the provinces of Guangxi and Yunnan. We must address the issues that were raised by the General Secretary of Vietnam and the President of China durng their meeting last year."

According to Deputy Minister Tran Thanh Nam, Vietnam views Yunnan province as an important trading partner with multiple advantages in temperate agriculture, while Vietnam has advantages in tropical agriculture and marine products.

Deputy Minister Nam emphasized that Yunnan and the border provinces of Vietnam have had a long-standing tradition of friendly cooperation. As a result, it is essential that the two nations hold regular meetings to discuss solutions to boost trade value.

“Both countries have great untapped potentials for cooperation. However, import and export activities are still limited. According to our research, the flow Vietnamese goods through Yunnan border gates is relatively modest compared to other provinces," said Deputy Minister Nam.

According to Deputy Minister Nam, the bilateral trade turnover of agricultural products between Vietnam and China reached USD 340 million in the first 5 months of 2023. However, both countries have the potential to raise this figure higher.

A "boost" for trade activities

Deputy Minister Nam added that temperate vegetables and fruits from Yunnan are key products that Vietnam needs to import. He suggested that the establishment of an business association between the two countries can act as a "boost" in trade activities.

Most notably, 80 Yunnan businesses attended the Forum on the Vietnam - China Agriculture, Forestry and Fisheries Trade Connection recently held in Kunming city on May 31. 

Vietnam recently started construction of a highway connecting Ha Giang, a Vietnam's province neighbouring Yunnan, with other provinces. This road is expected to be the heart of goods transportation and tourism development. Vietnam also plans to construct a highway from Hoa Binh to Dien Bien, which shares a border with Yunnan.

“In our discussion with Yunnan province, I emphasized that businesses from both countries must participate in the construction and operation of the shared cold storage chains. Moreover, Prime Minister Pham Minh Chinh has assigned the Ministry of Agriculture and Rural Development of Vietnam to build and manage the logistical chain between Vietnam and China," said Deputy Minister Tran Thanh Nam.

Deputy Minister Nam suggested the Kunming Department of Customs to share the project on smart border gate, smart customs, smart connection, one-stop import and export, to Vietnamese management agencies for study and replication.

Strict handling of commercial fraud

According to Deputy Minister Nam, cases of commercial fraud are still occurring at the border gates, especially fraud in quantity and documents. Consequently, the Ministry of Agriculture and Rural Development proposed to send specialized agencies from Vietnam to coordinate with Yunnan Department of Customs to aid in the fight against commercial fraud.

"We should have a meeting between stakeholders from Vietnam and China every November to discuss trade issues."

Due to the need for import and export after the Covid-19 pandemic, Deputy Minister Nam suggested Yunnan Department of Customs to expand the list of seafood import-export. This expansion will allow businesses to increase quantity and output of agricultural products to Yunnan province. In addition, the Deputy Minister look forward to Yunnan's response regarding the export of live seafood to this province.

Yunnan Department of Customs reported that the province is constructing a bridge between Bach Sac and Ha Khau, two provinces that share border gates with Vietnam. This new infrastructure is expected to greatly reduce border congestion.

"We hope that Yunnan and other provinces in Vietnam will upgrade infrastructure and utilize modern equipment, to assist in customs clearance"

According to Mr. Hung Tien Quan, Deputy Director of Kunming Department of Customs, Kunming and Vietnam have started implementing a mechanism to exchange and acknowledge samples of quarantine certificates from June 1. This mechanism is currently limited to durian.

The Kunming Department of Customs aims to reduce customs clearance processing time with the help of health declaration, terminal goods, payment via QR Code, etc.