Chinese and Vietnamese economies 'complementary': minister

By Wang Huazhong and Ma Wei (chinadaily.com.cn)
Updated: 2009-09-10 17:40

CHONGQING: The deputy minister of Foreign Affairs of Vietnam said here Tuesday the Chinese and Vietnamese economies are "complementary", during his trip to a string of Chinese cities accompanied by an investment promotion delegation amid the lasting economic downturn.

Minister Doan Xuan Hung told China Daily in an exclusive interview that competition between the world's two manufacturers "is not worth worries" from the two sides and Vietnam has been providing China and other international investors with favorable policies and resources for local production.

"China and Vietnam are complementary economies. Vietnam is willing to see China develop and grow stronger - which also means opportunities for our economic development," he said.

"China has advanced technologies and craftsmanship of world class levels. It could come and utilize Vietnamese resources, raw materials to customized products that suit foreign demands for export.

"While on the other side, Vietnam could offer China consumer goods, tropical products and tourism products on a long and regular basis," Hung added.

Vietnamese Ambassador to China Nguyen Van Tho and Hung attended Tuesday's Chongqing-Vietnam Trade and Tourism Forum, where Vietnam promised tax deductions for Chinese companies wishing to invest in its transportation and telecommunication infrastructure construction projects.

Following the event, the minister will visit Chengdu, capital city of Sichuan province, and the port city of Dalian, in Northeast China's Liaoning province, to enhance bilateral trade and ties.

Economic analysts said the delegation's trip to Chinese cities is to shore up bilateral trade dampened by the global financial crisis and attract inwards investment from China to offset decreased investment flow from the West into Vietnam.

Under the impact of the economic downturn, Vietnam-China trade deficit reached $4.89 billion in the first half of 2009, albeit total trade value between the two sides shrank 18 percent to $ 8.83 billion compared to the same period last year, according to figures released by the Ministry of Industry and Trade of Vietnam, Xinhua News Agency reported.

"The deficit is enormous. We hope China could provide convenience for our goods to export into China's gigantic market, and increase investment efforts to address imbalanced trade issues," said Hung.

Xinhua also reported statistics from the Ministry of Planning and Investment of Vietnam showing total value of foreign direct investment into Vietnam from January to August 2009 plummeted by 81.6 percent to $10.4 billion compared to the 2008 period, of which 4.8 billion is reinvestment into incumbent projects.

"The crisis had disturbed the world's financial market and subsequently dented investment into Vietnam. However, our open economy featuring a stable political environment and favorable policies will continue attracting investment," Hung stressed.

"There's great opportunity for China and Vietnam to explore cooperation potential. Next year will be the 60th anniversary of the duo's establishment of diplomatic ties, and I have full confidence in the development of Sino-Vietnam relations," he added.

Vietnam will assume the rotating presidency of the Association of Southeast Asian Nations (ASEAN) in 2010, and Hung said Vietnam would seek opportunities to develop and enrich Sino-Vietnam relations though the multilateral channel of ASEAN.

"Vietnam will consult with other ASEAN states to enhance Sino-ASEAN cooperation. The cooperation ideas will be positive and in good will," Hung said.