Delayed Visit Due to Discussions on Enhanced Bilateral Relations
The visit has experienced delays due to prolonged discussions on how to frame the countries’ enhanced bilateral relations. Beijing aims to describe it as a “common destiny,” a term that Hanoi initially resisted but is expected to eventually accept.
According to officials and diplomats, the upgraded status of relations goes beyond symbolism, potentially surpassing the U.S.-Vietnam relationship. This development is accompanied by the signing of “dozens of cooperation documents,” as stated by China’s ambassador to Vietnam, Xiong Bo. Vietnamese state newspaper, Tuoi Tre, reported on these documents prior to the visit.
Potential Agreements in Various Sectors
Several agreements are anticipated, including Chinese investments to enhance rail links between the two countries through grants. The volume of aid and the terms of possible loans are yet to be determined. Additionally, China aims to integrate northern Vietnam into its southern supply chain networks, while Vietnam is keen to increase its exports to China, especially farm products.
Chinese companies have expedited the relocation of their operations to Vietnam this year, outpacing pre-pandemic rates. This move positions them closer to Western clients, reduces risks arising from U.S.-China trade tensions, and minimizes exposure to China’s economic slowdown.
Infrastructure and Technological Collaboration
The strengthened rail connections would facilitate the import of components from China for assembly in Vietnam, effectively expanding China’s Belt and Road Initiative (BRI), often referred to as the new silk road. China also intends to incorporate Vietnam into its Digital Silk Road project, which may involve investments in undersea optical fiber cables, the 5G network, and other telecoms infrastructure.
Notably, the Hanoi metro is the sole project in Vietnam to have received BRI loans. However, Vietnam prefers not to openly label it as such, highlighting its sensitivity to being perceived as having close ties with Beijing.
Promoting Trade and Cooperation
Enhanced collaboration between China and Vietnam is expected to facilitate easier trade and cooperation in numerous sectors, including renewable energy, rare earths, and tourism. These agreements would potentially yield mutual benefits and contribute to the growth and development of both nations.