Expectation To Reach A New Height For Trade – Investment Cooperation Between Ho Chi Minh City and Guangxi (China)

On the morning of August 27, a momentous event, the Investment and Trade Promotion Conference between Ho Chi Minh City and the Guangxi Zhuang Autonomous Region (Guangxi), was convened in Ho Chi Minh City. The conference, held under the theme ‘Fostering Collaboration and Synergy to Enhance Economic and Trade Cooperation within the China-Vietnam Community of Shared Future’, marked a significant milestone in the economic and trade relations between the two regions.

Current status of comprehensive trade – investment cooperation between Vietnam and Guangxi – Comprehensive cooperation in many fields

China is known as the 16th ultimate business associate and investor in Ho Chi Minh City. Bilateral trade volume in 2023 reached approximately 23.3 billion USD, and there are 732 ongoing investment projects. Since 2015, Ho Chi Minh City has established comprehensive, friendly, and cooperative relations with eight Chinese regions, especially the Guangxi Zhuang Autonomous Region (Guangxi).

Over the past 25 years, Vietnam has emerged as one of the largest business associates of Guangxi. This partnership has propelled Guangxi and Vietnam to the #2 spot in bilateral trade volume within China. The first 6 months of 2024 witnessed a remarkable 35.6% surge in bilateral trade volume, a substantial leap from the previous year, signaling a bright future for the partnership. The consistent growth in logistics at the land border crossing between China (Guangxi) and Vietnam and the rapid construction of intelligent border gates further cement this robust relationship.

Collaborating in investment between Viet Nam and Guangxi has many positive effects. As of October  2023, Guangxi had 184 companies (excluding the financial sector) registered investments in Vietnam, with actual invested capital totaling 140 million USD. The total value of the EPC contracts (design, technology supply, and construction projects) of Guangxi companies proceeding in Vietnam was 1,09 billion USD. On the contrary, Vietnam has 103 companies registering investments in Guangxi, with a total capital of 196 million USD and an in-progress capital of 17 92 million USD.

Future Cooperation Commitments Between the Two Regions – Towards Shared Prosperity

As Võ Văn Hoan, Vice Chairman of The People’s Committee of Ho Chi Minh City, points out, the relationship between Vietnam and China, and specifically Ho Chi Minh City and Guangxi, is one of mutual support. This is evident in the shared benefits of Business Structure, Geographical Location for transporting goods, and diversity in business exchange. Ho Chi Minh City is unwavering in its commitment to furthering this partnership, aiming to promote trade and investment with Guangxi across a broad spectrum, from traditional business to the high-technology sector, towards service economies such as energy, finance, and trade.

According to Mr. Liu Ning, Secretary of the Regional Party Committee and Chairman of the Standing Committee of the National People’s Congress of Guangxi Zhuang Autonomous Region, Guangxi is prepared to collaborate with Vietnam to implement the three-year economic and trade cooperation action plan. This includes enhancing cooperation in industrial parks, industrial chains, and supply chains and jointly exploring the development of a new mechanism for cross-border collaboration between industrial parks to support the growth of enterprises and industries on both sides.

Thanks to the advantage of convenient transportation and a dense population, business cooperation between Vietnam and Guangxi has abundant potential to enhance development for the benefit of the companies and citizens in the two nations.

Insights of C+ on bilateral cooperation between the two localities

At the Trade and Investment conference, C+ Consult. gave a speech on our perspective of FDI investment from China to Vietnam in general and Ho Chi Minh in particular as a consulting firm. We believe some previous competitive advantages have become outdated but can not diminish Ho Chi Minh City’s competitive position in attracting FDI.

We need to continue sharing the development policies of both the country and the city with foreign businesses while keeping investors informed of Ho Chi Minh City’s unique core strengths, which are difficult to find elsewhere. Additionally, we should set expectations for foreign partners, particularly those from China, regarding collaboration for joint development aligned with a shared vision of sustainable growth.

Source: Various sources