Vietnam and China may be next-door neighbors, but that closeness has historically been a source of friction between them as much as good neighborliness. Tensions due to the two countries' overlapping territorial claims in the South China Sea have sometimes boiled over into violent protests in Vietnam. Still, despite the geopolitical issues, economic ties, including trade, investment and tourism are booming, as Rian Maelzer reports.  

This Chinese company produces power supplies for major electronics' manufacturers in Vietnam. It's based in a new, China-backed special economic zone in Hai Phong, Vietnam's third-largest city.

SONG WEN JIAN CHINA-VIETNAM ECONOMIC & TRADE COOPERATION ZONE "We set up to help Chinese companies expand outside of China, especially SMEs seeking to come out to establish themselves in this unfamiliar environment for the first time. The companies feel more confident setting up in a zone established by a state-owned Chinese company like us."

Drawn by its low costs, abundant workforce and accommodating business environment, Chinese foreign direct investment in Vietnam hit record levels last year as did trade, which grew 29 percent, and is topping $10 billion dollars a month. Vietnam has now eclipsed Malaysia to become China's biggest trading partner in ASEAN.

ADAM MCCARTY, CHIEF ECONOMIST MEKONG SECURITIES "Vietnam knows that it must be and is must continue to be strongly economically connected to China. That's the way it is going to catch up and become developed. But it doesn't want to become dependent at the same time. So it's not embracing the Chinese lending and opportunities like many other countries are. It's more cautious."

Ongoing political tensions have on occasion triggered protests here. But that isn't deterring Chinese from visiting Vietnam either.

RIAN MAELZER HANOI "More than one in four tourists to Vietnam is now from China, by far the biggest group. And in 2017 that number grew by 35 percent year on year."

Vietnam's business community is keen to see economic ties strengthen further.

VU TIEN LOC, PRESIDENT VIETNAM CHAMBER OF COMMERCE & INDUSTRY "My wish that any political tensions between Vietnam and China could be resolved through peaceful means, dialogue, discussions, based upon consensus between two ruling parties, two governments in order to protect our respective national interests."

The leadership of the two countries also seem keen to defuse political tensions, and continue to expand economic ties to the benefit of the people of both Vietnam and China. Rian Maelzer, CGTN, HANOI.