China companies keen on high-speed railway, energy projects in Vietnam

Chinese companies expressed their interest in infrastructure, energy and banking projects in Vietnam at a Sunday business forum in Hanoi, with the participation of Chinese Premier Li Qiang.

The event, themed 'Strengthening Mutually Beneficial Cooperation, Shaping the Future Together,' saw businesses from the two countries discuss cooperation prospects in areas such as infrastructure, energy, digital transformation, the digital economy, and banking.

Chinese businesses said they were eyeing infrastructure projects in Vietnam, such as railway systems connecting with China, urban railways and the high-speed North-South railway.

They also look for opportunities in smart city construction, smart manufacturing, data center development and e-commerce that aim to promote green and sustainable development.

Vietnam is planning to invest in a transnational high-speed railway project. The North-South high-speed railway is slated to have a length of 1,541 kilometers and a maximum speed of 350 kilometers per hour.

It will run through 20 provinces and cities, with the two ends being Hanoi and Ho Chi Minh City, the country’s two largest cities. The initial cost is $67.34 billion, higher than $58.7 billion of a similar project proposed in 2019.

"China has strengths in wind power, solar power, and electric vehicles, which are leading the development in the world and suitable for Vietnam's energy transition needs. Mutually beneficial cooperation will appear in these fields," said Premier Li Qiang.

Vietnamese businesses, in turn, urged the two governments to continue providing support in terms of finance, science and technology and management practices for infrastructure development, including railway connections with China.

They also called for financial support and payment connectivity, the development of 5G networks, digital infrastructure, artificial intelligence and the integration of the two countries’ trade systems. Cooperation in wind energy, solar energy, biomass energy and hydrogen development were also proposed.

During the forum, Vietnamese Prime Minister Pham Minh Chinh noted that Chinese investments in Vietnam were still not commensurate with the strong bilateral relationship.

The governments of both countries needed to promote further institutional connectivity, strategic infrastructure links, governance and technology transfer, human resource training, especially high-quality personnel and capital investment, focusing on emerging industries, he said

Payment connectivity, particularly through the use of local currencies and supply chain integration should be enhanced, the PM added.

Chinh reaffirmed that to attract foreign investment, the Vietnamese government was committed to three guarantees. These include ensuring that the foreign-invested economic sector remains an important part of Vietnam’s economy, with full support and encouragement for its long-term, stable development; ensuring the legitimate and legal rights of investors, with no criminalization of civil or economic relations; and ensuring political stability, public order and safety, along with consistent policy and ongoing improvements in the business and investment environment.

Chinh asked China to support and facilitate the integration of Vietnamese enterprises into the value and supply chains of Chinese corporations. He also called for further facilitation of bilateral trade, particularly by expanding the import of Vietnamese goods, including agricultural and aquatic products.

Premier Li Qiang arrived in Hanoi on Saturday evening, starting a three-day official visit to Vietnam at the invitation of Prime Minister Pham Minh Chinh. This is the first visit to Vietnam by a Chinese premier in 11 years and also Li’s first Vietnam trip since he took office in March 2023.

China is Vietnam’s largest trade partner and import market, providing Vietnam with input materials and intermediate goods for manufacturing. Vietnam is China’s biggest trade partner in ASEAN and fifth-largest worldwide.

Bilateral trade grew by 21.9% in the first nine months of 2024. Tourism cooperation has rebounded strongly, with 2.7 million Chinese tourists visiting Vietnam in the same period, surpassing the total number for the entire year of 2023.

Vietnam and China will focus on diplomacy, defence and security, while promoting practical cooperation in key areas such as trade and investment to further develop their bilateral relationship.

This message was delivered on Sunday during talks between Prime Minister Pham Minh Chinh and Chinese Premier Li Qiang, who is on a three-day official visit to Vietnam, Vietnam News Agency reported.

PM Chinh proposed that both sides expedite procedures to soon open a Vietnamese Consulate General in Chongqing and further boost trade cooperations. He also requested that China continue to open its market to high-quality Vietnamese agricultural products, such as citrus fruits, pomelo, avocado, custard apple, rose apple, herbal medicines, buffalo meat, beef, pork, livestock products and farmed lobster.

Additionally, the PM called for support in establishing a Vietnam trade promotion office in Haikou in 2024 and setting up trade promotion offices in Chengdu city in Sichuan province and Nanjing city in Jiangsu province in the near future.

He urged for improved customs clearance efficiency at border gates and the advancement of soft connectivity with smart customs.

On transportation connectivity, PM Chinh suggested that the two countries work together to effectively implement signed railway cooperation agreements, jointly develop a modern railway industry, provide preferential loans, transfer technology and support Vietnam in training human resources.

This would facilitate the construction of three standard gauge railway lines connecting northern Vietnamese provinces with China, including Lao Cai-Hanoi-Hai Phong, Lang Son-Hanoi, and Mong Cai-Ha Long-Hai Phong.

Regarding investment cooperation, PM Chinh proposed that both sides work on large-scale, high-tech symbolic projects for bilateral relations, particularly in fields where China has strengths and Vietnam has needs, such as renewable energy, supporting industries, electric vehicles, international financial centres, free trade zones, smart cities, the digital economy, the green economy and the circular economy.

He also suggested enhancing cooperation in finance and banking, science and technology, education, culture, tourism and the environment.

Premier Li Qiang affirmed that China would further open its market to Vietnamese goods, particularly high-quality agricultural products, seafood and fruits.

The Chinese leader also proposed that both sides enhance strategic connectivity, especially in transportation infrastructure, and strengthen cooperation in economics, trade and investment, particularly in manufacturing, agriculture and the maintenance of supply and production chains.

He emphasized the importance of vocational training, expanding cooperation in finance and currency, strengthening the social foundation and supporting increased tourism cooperation, local exchanges and the addition of more bilateral flights.

At the conclusion of the talks, the two leaders witnessed the signing of 10 cooperation agreements in areas including transportation connectivity, customs, social welfare, education, agricultural trade, media and banking.