China and Vietnam signed dozens of cooperation agreements during a state visit by Chinese President Xi Jinping, as he aimed to strengthen ties in Southeast Asia on his first overseas trip of the year, according to Bloomberg.
The two countries signed a total of 45 deals as the Chinese leader met Vietnamese Communist Party chief To Lam on Monday, Vietnamese state media VTV reported, without offering details of the agreements. The leaders agreed to establish a committee for railway development between the two nations in a bid to boost cooperation in that area, the report added.
Vietnam is seeking to further strengthen cooperation with China in security, transport and securing preferential loans as well as technology transfers from China, VTV said. Hanoi also expects more balanced trade with its neighbour, it said.
Xi landed in Vietnam days after Donald Trump raised tariffs on China but gave everyone else — including Vietnam, which is negotiating over its 46 per cent rate — a 90-day pause. His regional tour, which will also see him visit Malaysia and Cambodia, highlights the tricky position Southeast Asian nations face. They’ve become key routes for Chinese exports to reach the US since Trump’s tariff hikes on Beijing in his first term.
Ahead of his trip, Xi warned that there are “no winners in trade wars or tariff wars, and protectionism leads nowhere,” in an article in Nhan Dan newspaper, a publication of the Vietnamese Communist Party.
Since the first US-China trade war, Vietnam has emerged as a major beneficiary, with manufacturers relocating operations across the southern border to avoid tariffs imposed by the US. Investment from China has poured into Vietnam’s northern industrial parks, where companies including Foxconn and Luxshare Precision Industry Co have large factories making components for brands such as Apple.
Vietnam’s economy is heavily reliant on Chinese parts and raw materials, and the two sides are working to develop infrastructure to connect them more closely. China is Vietnam’s largest bilateral trade partner, with commerce totaling over $205 billion last year, and is a major market for Vietnam’s agricultural products from fruit to seafood, cashew nuts and coffee.
Vietnam’s government has vowed to speed up the progress of three railway projects connecting the two countries. This includes the $8.4 billion cross-border railway that will link the northern border city of Lao Cai to Hanoi and Haiphong port city.
On Sunday, the Vietnamese government moved to allow the import of more types of aircraft, which could pave the way for a deal with Commercial Aircraft Corp of China Ltd., better known as Comac.
Vietnamese Prime Minister Pham Minh Chinh said that aviation cooperation between Comac and Vietnamese partners has produced “increasingly positive outcomes,” after meeting the company’s chairman on Monday, according to a post on the government website.
In addition to aircraft leasing, Comac should “work with Vietnamese partners to invest in aircraft maintenance and repair centres in Vietnam,” Chinh said. Xi said at the meeting that China welcomes more trade with Vietnam and seeks increased cooperation in manufacturing and supply chains, as well technology including AI and semiconductor sectors, VTV said.
