China-Vietnam connectivity boosts trade, economic cooperation

As part of efforts to enhance regional connectivity and economic cooperation, new trains began trial operations in August, zipping between Ho Chi Minh City and the coastal city of Nha Trang. This trial is part of a broader plan to upgrade Vietnam's transportation network, aiming to improve travel within the country while also strengthening cross-border links with China.

Operated by the Vietnam Railways Corporation's Saigon Railway Joint Stock Company in collaboration with China's Jinxin Group, the trains run every two days, providing a more efficient and comfortable travel option for passengers. Along the route, they make key stops at stations such as Di An in Binh Duong and Bien Hoa in Dong Nai, improving access for both local commuters and tourists.

These transportation upgrades are seen as crucial steps in bolstering the economic ties between China and Vietnam, especially through improved cross-border logistics. Since 2017, freight train services between the two countries have grown significantly, with 6,850 twenty-foot equivalent unit containers transported in the first seven months of 2024 alone, marking a 16-fold increase from the previous year, according to China Railway Nanning Group Co., Ltd.

Vietnam's exports to China, particularly agricultural products like durians, dragon fruits and bananas, have surged in recent years, with China becoming an increasingly important market for Vietnamese produce. At the same time, China's exports of raw materials and machinery have supported Vietnam's burgeoning manufacturing industry, helping the country boost its production capacity.

Last year, freight trains departing from Guangxi primarily carried building materials, chemicals and electronics, with notable growth in shipments of laminated paper, diesel engines and dry food. The cross-border freight network now extends to ASEAN countries, including Vietnam, Laos and Thailand, with the Nanning International Railway Port becoming a key logistics hub for China's exports to Vietnam.

Vietnam remains China's largest trading partner in ASEAN, accounting for 25 percent of China's total trade with the bloc in 2023. Bilateral trade between China and Vietnam saw steady growth throughout the year. According to the General Administration of Customs, goods trade between the two countries totaled 1.45 trillion yuan (approximately $203.73 billion) from January to November 2023, reflecting a 3.6-percent increase compared to the previous year.

This rapid growth in trade stems from ongoing efforts to strengthen logistical networks. In October 2022, China and Vietnam signed a memorandum of understanding to enhance railway cooperation, focusing on key projects like the standard-gauge railway connecting Lao Cai, Hanoi and Hai Phong. The introduction of the Fangdong Railway, a high-speed link between Guangxi's Fangchenggang and Dongxing that began operating in July 2023, further supports these efforts by reducing transport times, cutting costs and bolstering trade between the two countries.

Green freight networks drive trade growth

Prior to this, the Cat Linh-Ha Dong metro line in Hanoi, built by China Railway Sixth Group using PCC pile technology from Chongqing University, had transported nearly 20 million passengers since its opening in 2021. This has helped reduce traffic congestion, decrease reliance on private vehicles and improve air quality in the city.

In addition to urban infrastructure, cross-border smart freight channels between China and Vietnam are set to bring further environmental benefits. Construction of the first cross-border smart port at the Youyi Pass began in September 2023. Equipped with satellite navigation and unmanned transport systems, the port will enable 24-hour unmanned customs clearance, doubling capacity and improving logistics efficiency while reducing the carbon footprint.

Chinese Ambassador to Vietnam Xiong Bo has emphasized the importance of improving connectivity, particularly in the remote border regions where infrastructure has been limited by difficult terrain. "Improving the transportation network between the two countries is a top priority," he said.

"These border areas, although remote, have the potential to become key gateways for trade and cooperation. By opening up these regions, we can turn geographic challenges into economic opportunities."