Vietnam is now China's top trading partner in ASEAN

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02:27

The economic ties between China and Vietnam, including trade, investment and tourism, are booming. Eclipsing Malaysia, Vietnam is now China’s biggest trading partner in ASEAN.

Song Wenjian works for the China-Vietnam Economic and Trade Cooperation Zone. This cooperation zone in Hai Phong was set up to help small and medium-sized enterprises from China establish themselves in the unfamiliar environment. "Companies feel more confident setting up in a zone established by a state-owned Chinese company like us," said Song.

Drawn by low costs, an abundant workforce and accommodating business environment, Chinese foreign direct investment in Vietnam hit record levels last year and the trade between the two nations is topping 10 billion US dollars a month.

"Vietnam knows that it must continue to be 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," commented Dr. Adam McCarty, Chief Economist of Mekong Securities.