Dong Dang border gate in Lang Son province (Source: vneconomy.vn)

Vietnam, China see surge in border trade, with more to come

Trade activities between Vietnam and China have been busy since the beginning of 2024, with a series of border gates reopened and upgraded.

According to the management board of the Dong Dang-Lang Son economic zone, the first week of the year saw the number of trucks transporting goods through six land border gates in the northern mountainous province of Lang Son increased by nearly 300 compared to the previous month. On a daily average, there were about 400 trucks carrying exports and about 800 trucks carrying imports.

Lang Son shares a 231.7km borderline with China’s Guangxi Zhuang Autonomous Region, cited VNA.

A representative of the board stated that the demand of the Chinese market for Vietnamese agricultural products and fresh fruits during the Lunar New Year period is usually very high. Meanwhile, Vietnamese enterprises also need to import more consumer goods and machinery components for the domestic market, hence the significant increase in cross-border trade between the countries.

Trade activities, especially on farm produce, are also in full swing at the Lao Cai border gate in the northern province of the same name, which borders China’s Yunnan province. In the first three days of 2024, the total import-export turnover through this crossing neared US$5.4 million, with export value exceeding US$2.8 million. Vietnam's main exports include durian, bananas, sweet potatoes, dragon fruit, dried cassava and charcoal.

Vuong Trinh Quoc, the head of the management board of Lao Cai economic zone, forecast that trade with China will flourish even more this year. After the state-level visit to Vietnam by Party General Secretary and President of China Xi Jinping, the country has announced that it will open its market to many potential Vietnamese agricultural products, including fresh coconuts, frozen fruit, citrus fruit, avocados, bananas, custard apples, and water apples.

Vietnam attends ASEAN-EU Ministerial Meeting in Brussels

Vietnamese Foreign Minister Bui Thanh Son attended the 24th ASEAN-EU Ministerial Meeting (AEMM-24) in Brussels, Belgium, on February 2, alongside foreign ministers of other ASEAN countries and all 27 member states of the EU.

At the meeting, both sides affirmed their importance to the ASEAN-EU strategic partnership established during Vietnam’s ASEAN Chairmanship Year 2020, and at the same time acknowledged the positive developments in their relationship in recent times.

ASEAN Foreign Ministers affirmed that the EU is one of ASEAN’s most important partners, making a positive contribution to the process of building the ASEAN Community. The EU’s desire to strengthen cooperation with the Indo-Pacific region, including ASEAN, through strategies and initiatives such as the EU-Indo Pacific Strategy, the Global Gateway Initiative, the Sustainable Connectivity Team Europe Initiative, and the Green Deal.

Meanwhile, EU Foreign Ministers affirmed their support for ASEAN’s central role, and emphasized that in the current complex world context, stronger cooperation between ASEAN and the EU is inevitable. They proposed strengthening comprehensive cooperation, regular dialogue and consultation, continuing to negotiate free trade agreements (FTAs) with other ASEAN member states, after having reached the FTAs with Vietnam and Singapore.

The two sides agreed to effectively implement the joint leaders’ statement of the ASEAN-EU Commemorative Summit 2022 and the Action Plan for the 2023-2027 period, with priority given to enhancing economic-trade-investment cooperation, maintaining the supply chain, promoting climate change response, ensuring food security and energy security, while expanding cooperation into new potential fields such as digital economy, innovation, green economy, and green services towards establishing an ASEAN-EU FTA in the future.

Exchanging regional and international issues of mutual concern, the two sides agreed that in the context of global complications and uncertainties, ASEAN and the EU need to strengthen cooperation to maintain a peaceful and stable environment for development, uphold multilateralism, comply with international law, promote dialogue and cooperation, and peacefully resolve disputes and conflicts, especially in hot spots such as Ukraine, the Middle East, and the Korean Peninsula.

Josep Borrell, High Representative of the European Union for Foreign Affairs and Security Policy, speaks at the 24th ASEAN-EU Ministerial Meeting in Brussels, Belgium, on February 2. (Photo: baoquocte)

The Foreign Ministers also reaffirmed the importance of ensuring peace, stability, security, and maritime and aviation safety in maritime zones, including the East Sea, in line with international law, especially the 1982 United Nations Convention on the Law of the Sea (UNCLOS).

Addressing the meeting, Vietnamese Foreign Minister Bui Thanh Son shared the ministers’ assessments about the positive progress in the ASEAN-EU strategic partnership and put forward a number of measures to strengthen ASEAN-EU cooperation in the coming time.

He underscored the need to effectively implement agreements reached at the ASEAN-EU Commemorative Summit 2022, especially those on economics, trade, investment, sustainable development and cooperation, while promoting new growth drivers such as digital transformation, energy transformation, green economy and circular economy, according to VOV.

He called on the remaining EU member states to soon ratify the EU-Vietnam Investment Protection Agreement (EVIPA), and more effectively deploy existing cooperation frameworks, including the EU-Vietnam Free Trade Agreement (EVFTA). He requested the EU to support Vietnam in mobilizing resources to deploy the Just Energy Transition Partnership (JETP).

The Minister reaffirmed the stance of Vietnam and ASEAN on the East Sea, calling on EU member states to support ASEAN and China’s efforts in fully and effectively implementing the Declaration on the Conduct of Parties in the East Sea (DOC), and building a practical, effective Code of Conduct in the waters (COC) in accordance with international law, including UNCLOS 1982.

The Foreign Ministers of ASEAN and the EU adopted a joint statement at the end of the meeting.

Merchants anticipate strong sales for Tet

As the Lunar New Year (Tet) approaches, decoration shops along the streets of Ho Chi Minh City such as Hai Thuong Lan Ong, Tran Hung Dao, Nguyen Trai, Phung Hung are showcasing a plethora of Tet-themed products, boasting diverse designs.

This year, traditional Vietnamese Tet decorations dominate the majority of displayed items. Customers are taking notice of many new products, including the Tet couplets written on red paper affixed to bamboo sticks, and red-painted bamboo trays adorned with the calligraphy of Tet wishes, VNA reported.

At a shop on Hai Thuong Lan Ong street, District 5 (Photo: VNA)

Particularly, owing to the Year of the Dragon, the zodiac symbol for this Tet, most decorative items feature images of dragons, both traditional and stylized.

Compared to the previous year, the prices of Tet decoration products remain relatively stable.

Nguyen Mai Nhi, a small merchant on District 5’s Hai Thuong Lan Ong street, said the number of customers during Tet doubles compared to normal days. However, this year, customer numbers are down by about 50% compared to the same period last year. She is considering offering further discounts on products closer to Tet and extending sales beyond the holiday to generate additional income.

In contrast, stores and supermarkets in Ho Chi Minh City are busier as customers actively go shopping there.

Besides traditional markets, some consumers prioritise online shopping channels. Major e-commerce platforms such as Shopee, Lazada, and the Tik Tok Shop are rolling out various promotions along with policies and services to facilitate smoother shopping experiences.

Lanterns, red winter cherry blossoms, decorative decals, and auspicious hanging scrolls are among the popular search keywords on these platforms.

In addition to discounts, industry-specific promotions and live stream events, these platforms also offer specific features. These include free shipping, 5-7 day returns, easy order cancellation, QR code scanning for rewards, pre-delivery product inspection, customer consultation, and meticulous packaging.

Remittances to Vietnam hit record high of US$16 billion in 2023

Remittances sent by Vietnamese nationals abroad hit approximately US$16 billion last year, representing a year-on-year rise of 32%, according to the State Bank of Vietnam.

Many countries have begun to remove immigration restrictions, creating conditions for Vietnamese residents to work abroad who then send more money back, analyzed experts, explaining one of the reasons that remittances increased sharply last year compared to the previous years.

This is a good piece of news because the high sum has been received in the context of the global economic fallouts, said Assoc. Prof. Dr. Dinh Trong Thinh, a senior lecturer at the Vietnam National Academy of Finance.

This is a large source of additional capital for investment in the domestic private economic sector, greatly contributing to ensuring the lives of many families and supporting social security in the country, added the economist, cited VOV.

Remittances to Vietnam in 2023 rise 32% to approximately US$16 billion. (Illustrative image)

Sharing the same view, Dr. Nguyen Tri Hieu, a finance and banking expert, said that the sum is remitted by Vietnamese expatriates and Vietnamese guest workers abroad that supports national socio-economic development, as well as the central bank’s monetary policy management.

Currently, there are nearly 6 million Vietnamese people living, studying and working in 130 countries and territories worldwide. Ho Chi Minh City alone has about 2.9 million residents living and working abroad.

Notably, the largest source of remittances flowing into Vietnam comes from Asian countries. Among them, the three largest labor markets of Vietnam are Japan, the Republic of Korea and Taiwan.

Nguyen Duc Lenh, deputy director of the Ho Chi Minh City branch of the State Bank of Vietnam, said Asia is a region that maintains economic and political stability along with increasingly expanding economic relations and labor cooperation with Vietnam. This market will therefore have an impact on remittance growth in the coming time.

Meanwhile, for the US and European markets, it is forecast that the amount of remittances to Vietnam will be lower than in the Asian region due to political instability, including the prolonged Russia - Ukraine and Israel - Hamas conflicts that will impact the growth of remittances sent to Vietnam from overseas Vietnamese.

Despite a challenging global economic landscape, Vietnam continues to stand resilient as one of the top 10 recipients of overseas remittances worldwide, behind India, Mexico, China, the Philippines, France, Germany and Ukraine, according to the World Bank’s Migration and Development Brief and the Global Knowledge Partnership on Migration and Development (KNOMAD).

This year, the amount of remittances to Vietnam is expected to increase by about 20% thanks to the global economic recovery.

Vietnam aims to welcome 18 million international guests in 2024

The Vietnam National Administration of Tourism (Ministry of Culture, Sports and Tourism) reports that in January 2024, the number of international visitors to Vietnam exceeded 1.5 million, a 10.3 percent increase compared to the previous month and a remarkable 73.6 percent increase compared to the same period in 2023.

This surge is the highest since Vietnam reopened for tourism in March 2022, equivalent to the figure of January 2019, before the COVID-19 pandemic. It is indeed an encouraging signal for Vietnam's tourism industry, providing motivation and confidence to achieve the goal of welcoming 17-18 million international visitors in 2024, serving 110 million domestic visitors (including approximately 72.5 million overnight stays). The total revenue from tourism is estimated to reach around VND840 trillion (US$34.4 billion), VNS reported.

Tourists on cyclos visiting Hoan Kiem Lake in Hanoi. The total revenue from tourism in 2024 is estimated to reach around VND840 trillion (US$34.4 billion).

According to the Vietnam National Administration of Tourism, South Korea continues to be the largest source market in January 2024, accounting for 27.6 percent of the total. China ranks second, followed by Taiwan (China). Meanwhile, the United Kingdom, France, Germany and Russia are the largest European markets for Vietnam.

In terms of continents, Asian visitors increased slightly compared to the previous month, while other regions experienced strong growth: the Americas increased by 27.3 per cent, Europe by 26.6 per cent, Australia by 68.5 per cent and Africa by 35.2 per cent.

The Vietnam National Administration of Tourism evaluates that January 2024 witnessed excellent growth from European markets benefiting from the unilateral visa waiver policy. This growth demonstrates the clear effectiveness of extending the stay duration from 15 days to 45 days for 13 countries enjoying unilateral visa exemptions, as per Resolution 128/NQ-CP issued by the Government, effective from August 15, 2023.

The United Nations World Tourism Organization (UNWTO) notes that in 2023, international tourism is on track to return to pre-pandemic levels by 2024. Preliminary estimates indicate that total international tourism revenue will reach $1.4 trillion in 2023, equivalent to 93 per cent of the 2019 figure (US$1.5 trillion). The direct contribution of tourism to the global economy, measured by tourism's share of total GDP, is estimated to reach $3.3 trillion in 2023, equivalent to 3 percent of global GDP.

International tourism is expected to fully recover to pre-pandemic levels by the end of 2024, with an estimated 2 per cent increase compared to 2019. However, this recovery depends on the pace of recovery in Asia and is subject to risks from the economy, politics and other factors. Factors such as conflicts, high inflation, oil price fluctuations and trade disruptions may impact travel and accommodation costs in 2024. Labour shortages will remain a challenge for tourism, especially during peak travel seasons. In this context, tourists may prioritize choosing local and sustainable destinations that are adaptable.

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