Expanding export markets to China is no longer as straightforward as before. This market has become more demanding, imposing stringent requirements on exported goods. While China remains Vietnam’s largest trading partner, our export market stands second only to the United States. However, with a large population and extensive land and sea borders, China poses significant challenges for Vietnamese businesses.

Minister Nguyen Hong Dien remarks, “China is no longer an easy-going market; not all goods are accepted. Although China is Vietnam’s largest trading partner, its economy primarily focuses on exports, making it the world’s factory. China’s exported goods are similar to Vietnam’s, creating both advantages and challenges for Vietnamese products.”

The Sole Export Market Showing Positive Growth

Despite global economic difficulties, trade between Vietnam and China maintains positive growth. By the end of the first 11 months of 2023, the trade turnover between the two countries reached $155.58 billion. Vietnam’s exports to China amounted to $55.98 billion, a 6.2% increase, while imports from China were $99.6 billion, a 9% decrease compared to the same period last year.

The latest report from the Ministry of Industry and Trade emphasizes that China is Vietnam’s second-largest export market, accounting for 17.3% of the country’s total export turnover. Notably, China is the only market among Vietnam’s major partners to achieve positive growth. While exports from Vietnam to China reversed from a 2.2% decrease at the beginning of the year to a 6.2% increase after 11 months, other major markets recorded declines.

The government, Ministry of Industry and Trade, and related departments have shown significant efforts in negotiating to open the Chinese market for Vietnamese goods. These negotiations are evident through the two visits of the Prime Minister to China in 2023, where he proposed that the Chinese government further open its market for Vietnamese agricultural products, especially frozen durians, chili, watermelons, and medicinal herbs.

Market Opening Efforts and Facing Challenges

The government and Ministry of Industry and Trade have tirelessly worked to open the Chinese market. The Prime Minister has proposed opening doors for various types of goods, especially agricultural products like durians, chili, watermelons, and medicinal herbs. However, to overcome challenges, a change in approach is necessary. Producers and businesses need to understand that China is not only a large market but also demands preparation and innovation to seize opportunities.

China – No longer an “easy-going” market

Mr. To Ngoc Son, Deputy Head of the Asia-Africa Market Department (Ministry of Industry and Trade), notes that China currently accounts for nearly 54% of Vietnam’s total export value of fruits and vegetables. Specifically, 90% of the output of lychees, 80% of dragon fruits, and over 90% of cassava and cassava-based products are exported to the Chinese market.

In 2023, the export turnover of durians from Vietnam to China is expected to reach $2.5 billion. China also accounts for over 70% of the export volume of rubber and is the third-largest seafood export market for Vietnam.

With a population of over 1.4 billion and an increasing middle class, China has become the world’s leading consumer market, enhancing import demand. Conversely, Vietnam has become China’s fourth-largest trading partner, supplying items such as lychees, dragon fruits, cashews, and various other products.

However, according to Mr. To Ngoc Son, Vietnamese export businesses have not fully exploited the potential of the Chinese market due to habits of exporting small quantities across the border and limitations in accessing deep market regions on the mainland.

In addition to strengthening law enforcement from China, Vietnam’s agricultural sector also faces increasing competitive pressure from other countries in the region. To efficiently exploit this market, there is a need for a change in approach and a reevaluation of the market from the perspective of producers and exporters.

“Firstly, producers need to eliminate the mindset that China is an easy market and recognize it as a market with high standards and strict controls, requiring quality from the production stage. Export businesses also need to quickly shift from small-scale to large-scale exports. Additionally, they should stay updated on market trends and preferences.

Businesses also need to enhance regional access, as China is an extremely vast market with different needs and habits in each region. Many businesses currently focus only on areas near the Vietnam-China border, failing to tap into the potential in provinces and cities deep within mainland China,” suggests Mr. To Ngoc Son.

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3A Logistics

3A Logistics, a professional export transportation service provider, takes pride in being a leading partner in this field. We offer reliable post-logistics, customs, and domestic transportation services at the most reasonable cost to meet the diverse needs of our customers.

3A Logistics is committed to providing free consultation and addressing any customer concerns during the transportation and customs clearance process. We support customers in using services with confidence while accumulating experience in the export field to maximize cost savings.

To ensure professionalism and safety in export transportation, 3A Logistics has invested in and upgraded a specialized fleet, including various types of wagons such as P for transporting oil, Mc for container transport, Mcc for transporting refrigerated containers, H for transporting high-profile cargo with open roofs, NR for transporting automobiles, and many others. The fleet is equipped with modern technical equipment, assessed according to the latest standards to ensure safety and large transportation capacity.

For more detailed information or to request our services, please contact 3A Logistics. We will be your reliable partner in every export journey.

Comprehensive Import-Export Services Provided:

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• Cargo packing services (wooden crates, open crates, wooden pallets, plastic pallets, PE wrapping, etc.).
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Contact Information – 3A Logistics

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