Vietnamese Exports to China Surge Despite Challenges and Detention of Cargo Trucks
In 2023, the value of goods traded through the Lao Cai international border gate increased significantly compared to the previous year. Vietnamese agricultural products were imported by China at a higher rate, with exports doubling in the first three months of this year. Products like durian saw a particular increase in demand. The export turnover is expected to continue rising with the official export of frozen coconuts and durians, potentially reaching 4.5 billion USD.
Despite these positive developments, there have been challenges for Vietnamese cargo trucks in China due to contract disputes and substandard goods preservation. More than 100 Vietnamese cargo trucks have been stored in China since last year. The Lao Cai Economic Zone Management Board has warned provincial business associations about the rising number of detained Vietnamese vehicles in Hekou, China. The drivers were detained because they did not preserve the goods properly, leading to damage and disputes over compensation and contract implementation, which prevented the vehicles from leaving the country.
To resolve this issue, the Lao Cai Economic Zone Management Board suggests that Vietnamese and Chinese businesses establish clear terms and records in contracts to create a healthy business environment. Vietnamese businesses are also urged to improve product quality to maintain the reputation of exported goods. Efforts to resolve the situation have not been successful so far, but with clear agreements and improved product quality, trade relations between Vietnam and China can continue to grow.
In conclusion, while there have been challenges for Vietnamese cargo trucks in China due to contract disputes and substandard goods preservation, there are opportunities for growth through expanding export opportunities for agricultural products through the Lao Cai border gate. To achieve success, it is crucial for both countries to work together on clear contractual agreements and improved product quality while continuing efforts to enhance trade relations between Vietnam and China.