Vietnam–China sign two MOUs to advance cross-border supply chains and border economy, aiming to lift bilateral trade to $500 billion

During the state visit of General Secretary and President To Lam to China, Vietnam’s Minister of Industry and Trade Le Manh Hung and China’s Minister of Commerce Wang Wentao signed two memoranda of understanding and set a goal to raise bilateral trade to USD 500 billion in the near term, nearly doubling the USD 256.5 billion figure recorded in 2025.

Trade goal and current scale

Vietnam-China trade relations are at a historic high. According to Vietnam’s customs data, bilateral trade in 2025 reached USD 256.5 billion, up 24.8% year-on-year from 2024. China remains Vietnam’s largest trading partner for several consecutive years, and Vietnam is China’s second-largest export market. In the opposite direction, Vietnam remains China’s largest trading partner within the ASEAN bloc.

Despite the large trade scale, Vietnam faces a structural challenge: imports from China remain high, indicating continued dependence on imported raw materials, components, and intermediary goods.

Restructuring production and supply chains

Minister Le Manh Hung said both sides need to restructure production, trade, and supply chains, prioritizing production-chain restructuring to move bilateral trade toward a more balanced and sustainable path.

Vietnam proposed that China increase imports of Vietnamese goods, broaden the list of items eligible for tariff preferences, and open the market. Vietnam also requested mutual recognition of phytosanitary results for agricultural, forestry, and aquatic products, described as one of the largest non-tariff barriers affecting Vietnamese agricultural exports to China.

Vietnam further proposed facilitating participation in the “Share a Large Market – Exports to China” program and expanding trade promotion offices across China.

China’s commitments on market access and promotion

Minister Wang Wentao agreed with Vietnam’s proposals. China confirmed continued support for Vietnam in establishing additional trade-promotion offices beyond the three already in Chongqing, Hangzhou, and Haikou.

On the “Share a Large Market” program, China invited Vietnam to participate in five activities in 2026 and welcomed Vietnam to host as the theme country in 2027.

Memoranda and working groups

Two memoranda were signed in the presence of the General Secretary and President of both countries. The first covers the establishment of a Working Group to Promote the Vietnam–China Cross-Border Economic Cooperation Zone. The second covers the establishment of a Working Group on Vietnam–China Production Chain and Supply Chain Cooperation.

In the context of global supply chain shifts and the “China + 1” trend shaping Asia’s manufacturing geography, the cross-border supply chain working group is described as having strategic significance beyond bilateral ties, offering Vietnam a mechanism to position itself in regional labor division rather than passively absorbing relocation waves.

Cross-border e-commerce and implementation

On cross-border e-commerce, Wang Wentao proposed increasing the presence of Vietnam’s national pavilion on Chinese e-commerce platforms to promote Vietnamese goods directly to Chinese consumers. The distribution channel was noted as growing rapidly, with potential especially for Vietnamese agricultural products, foods, and consumer goods.

The two ministers also agreed to establish a joint technical task force to review and accelerate the leaders’ shared understandings and commitments from the talks.

Long-term trade target and next steps

Both ministers reaffirmed the objective of raising bilateral trade to USD 500 billion as a long-term strategic goal, corresponding to nearly doubling the 2025 figure of USD 256.5 billion.

Wang Wentao also invited Le Manh Hung to lead Vietnam’s delegation to the APEC Ministers’ Meeting in Suzhou from May 22–23, 2026. Le Manh Hung invited Wang Wentao to visit Vietnam at a suitable time to continue deeper discussions.