Vietnam-China trade accelerates to record pace

The economic relationship between Vietnam and China is entering a new development phase as bilateral trade reaches record highs, investment flows rise sharply, and supply chains become increasingly integrated.

Vietnam’s largest trading partner

According to data from the General Department of Customs, bilateral trade between Vietnam and China has surged in recent years. In 2023, bilateral trade reached about 171.9 billion USD. In 2024, trade exceeded 200 billion USD for the first time, reaching about 205 billion USD. By 2025, the figure jumped to around 256.4 billion USD, up nearly 25%, keeping China as Vietnam’s largest trading partner and making Vietnam China’s largest trading partner in ASEAN.

In the trade structure, Vietnam’s exports to China last year were about 70 billion USD, while imports approached 186 billion USD. The commodity mix has also shifted positively. Vietnam remains strong in agricultural, forestry and fishery products—such as durian, dragon fruit, bananas, rubber, cassava and cassava products—and is increasingly penetrating China’s retail and supermarket networks with higher standards.

At the same time, the share of processed industrial goods in exports—such as electronics, machinery and components—is rising, indicating an upgrade in Vietnam’s value chain for the Chinese market.

Imports supporting Vietnam’s industrial production

On the import side, China’s exports to Vietnam mainly include machinery, equipment, components and input materials that feed Vietnam’s industrial production. This supports major Vietnamese export industries, including electronics, textiles and garments, and mechanical engineering, helping them maintain global competitiveness.

Durian has also become a billion-dollar export item for Vietnam since the country signed the protocol with China.

Chinese investment accelerates

Beyond trade, China’s capital investment into Vietnam is emerging as a key driver of the relationship. Data from the Ministry of Finance shows Chinese investment in Vietnam rising steadily to nearly 6 billion USD in 2025, up more than 33%, ranking second among foreign investors in Vietnam.

While earlier investment focused more on labor-intensive sectors, there is now a clear shift toward high-tech and foundational industries. Chinese firms with large-scale projects include Foxconn, Luxshare-ICT, Pegatron, Goertek and Compal, which have invested billions in electronics. Luxshare-ICT alone has invested more than 1.8 billion USD and views Vietnam as a key production base within its global network.

Electric vehicle maker BYD has also launched a battery production project in Hue with a scale of about 130 million USD, opening new avenues for cooperation in electric vehicles and clean energy.

In addition, projects to manufacture components, materials, fibers and tires—ranging from hundreds of millions to billions of USD—continue to expand, reflecting Vietnam’s growing role in China firms’ supply-chain restructuring amid broader global manufacturing shifts.

Cooperation expands into high-tech and logistics

This year, investment in the first three months reached about 828 million USD, and signs of a slowdown appeared. Even so, the outlook for cooperation remains positive, with new areas such as semiconductors, artificial intelligence, electric vehicles and green energy emerging as potential pillars for near-term growth.

Infrastructure and logistics connectivity is also improving cooperation. Vietnam and China are promoting cross-border rail connectivity projects, including lines from Lao Cai–Hanoi–Hai Phong and Dong Dang–Hanoi–Hai Phong, aimed at deepening integration with China’s rail network. The development of smart border gates, digitization of customs procedures, and construction of cross-border economic corridors are helping shorten clearance times, reduce logistics costs and improve supply-chain efficiency.

Policy focus: higher standards and higher value

Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said economic and trade cooperation between Vietnam and China continues to grow rapidly, with expanding scale and a highly complementary goods structure that supports production and exports.

Leaders at the Ministry of Industry and Trade noted that Vietnam’s approach to the Chinese market needs to be adjusted more aggressively. The market is no longer as permissive as before, with tighter requirements on quality, origin tracing and food safety. Vietnamese enterprises are therefore expected to update to evolving consumer trends and restructure production toward higher quality, greater value and stricter standards.

In attracting Chinese capital, Vietnam encourages investors to shift away from traditional sectors such as textiles, footwear and assembly toward high-tech and innovative fields, including artificial intelligence, semiconductors, renewable energy, the green economy and the digital economy.