Proposing Chongqing create favorable conditions for Vietnamese agri-product importations

On October 16, Vietrade, the Ministry of Industry and Trade, and the Chongqing Trade Promotion Committee, China, co-hosted the Conference on Vietnam - China (Chongqing) Trade Promotion, Investment, and Trade Connections. 

The purpose of the conference was to further strengthen trade and economic cooperation between Vietnam and Chongqing, China, and to implement the Memorandum of Understanding on Strengthening Trade and Economic Cooperation and Investment in the Commercial Promotion signed on September 16, 2022. 

Speaking at the Conference, Deputy Minister of Industry and Trade Phan Thi Thang praised the significance of the delegation's visit and activities, stating that these activities not only contribute to consolidating and strengthening the cooperative relationship between the Ministry of Industry and Trade of Vietnam and the Chongqing City Government but also open up more investment and business cooperation opportunities for both parties.

Deputy Minister Phan Thi Thang stated that China has maintained its position as Vietnam's largest trading partner for the past two decades. Vietnam is China's largest trading partner in ASEAN and China's sixth greatest trading partner in 2022.

Particularly, Chongqing is a significant hub for promoting economic cooperation, trade, and investment between the southwest region of China and Vietnam.

Expanding practical cooperation between businesses of the two parties in economics and trade is crucial, particularly given that Vietnam and Chongqing City account for only 3% of the total trade turnover between the two nations.

The Vietnamese side will continue to encourage domestic businesses with suitable conditions and requirements to establish ties with Chongqing businesses in particular and Chinese businesses in general. Additionally, Chongqing companies with sophisticated qualifications and technology in the field of new energy are encouraged to cooperate, invest, and develop in Vietnam.

To continue exploiting and fully promoting the potentials and needs of both sides, Deputy Minister Phan Thi Thang requested that the Chongqing city government pay attention and create favorable conditions for Vietnamese businesses to export to Chongqing products that are their forte (fruits, seafood, other agricultural products, textiles, etc.).

Support businesses on both sides to increase investment cooperation and share experiences in developing the agricultural and medicinal processing industries in which Chongqing has comparative advantages, thereby assisting Vietnam in enhancing its capacity for agricultural product processing. Continue fostering favorable circumstances for the Vietnam Trade Promotion Office in Chongqing, China; Create favorable conditions for the Chongqing Trade Committee and the Vietnam Trade Promotion Agency to effectively implement the Memorandum of Understanding on enhancing economic, trade, and investment cooperation between Vietnam and Chongqing in the industry and trade sectors.

On the other hand, Deputy Minister Phan Thi Thang requested that businesses from the two countries, particularly those from the city of Chongqing, communicate and connect information about market requirements and trade regulations and policies. every country; Participate actively in international exhibitions conducted in each country in order to establish direct connections and promote stable, long-term, and effective economic cooperation activities.

On the Chinese side, Deputy Mayor Zhang Guozhi stated that the Chongqing side hopes the Vietnamese side will encourage more Vietnamese businesses to participate in building the "New Land-Sea Route"; the two sides will expand substantive economic and trade cooperation between businesses, particularly in certain fields such as transportation, manufacturing, trading of new energy vehicles, silk, etc.

According to Chongqing Customs data, Chongqing's foreign trade turnover for the first five months of 2023 was 3,406.6 billion USD, a decrease of 20.8%.

Despite being severely impacted by the COVID-19 pandemic in recent years, economic and trade cooperation between Vietnam and Chongqing has continued to flourish, with trade volume between the two cities increasing annually.

According to statistics from China Customs, two-way trade turnover between Vietnam and Chongqing in 2018 only reached 2 billion USD, but by 2019 it had doubled to 4.5 billion USD in 2020, despite the significant impact of the Covid-19 epidemic, the trade turnover of the two sides continued to grow strongly, reaching over 7.3 billion yuan. In 2021, it still maintained a growth rate of 7.93 billion USD.

In 2022, the trade turnover between the two sides will reach 7.314 billion USD, down 7.79%, of which Vietnam's exports to Chongqing will reach 5.15 billion USD, down 12.2% (mainly machinery, electronic equipment with a turnover of 5 billion USD; the remaining agricultural products and some other items reached about 150 million USD, including banana fruits, durian, mango, mangosteen, ground pepper, broken rice reached about 60 million USD, seafood reached about 3.5 million USD, mainly fish fillet, other food products reached about 5.5 million USD. Vietnam's imports from Chongqing reached 2.16 billion USD, an increase of 4.79%.

Chongqing - Vietnam import-export turnover in the first 6 months of 2023 reached 3.01 billion USD, down 20.8% compared to the same period in 2022; of which Vietnam's exports to Chongqing reached 2.03 billion USD, down 18.5%. Vietnam's imports from Chongqing reached 973.36 million USD, down 23.7% over the same period. Chongqing's main agricultural products imported from Vietnam in the first 6 months of the year include durian reaching 52.76 million USD; dragon fruit reached 15.3 million USD; rice reached 3.6 million USD. Vietnam - Chongqing import-export turnover decreased in 2022 and the first 6 months of 2023, however, Chongqing remains Vietnam's trade surplus market.