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Free AccessChina & Vietnam Sign 37 Agreements Amid Competition w/US For Influence
(MNI) London - Wires reporting that during the course of Chinese President Xi Jinping's state visit to the Vietnamese capital Hanoi, the two sides signed 37 separate agreements in various spheres. These include a memoranda of understanding on cross-border rail development, joint naval patrols in the Gulf of Tonkin, and 2023-26 economic and trade action plans. The two have also agreed to jointly promote the "Two Corridors, One Belt" initiative (the Vietnamese leg of China's vast Belt and Road Initiative), and ease customs procedures at the Lao Cai border gate (a 16k hectare economic zone aimed at becoming a major logistics hub for the region).
- Xi's visit has gained notable attention, coming just months after US President Joe Biden made the same trip. As the NYT highlights: "Few nations now feature more centrally in the great-power competition between the United States and China, placing Vietnam, which has a long history of fierce independence, in a high-risk, high-reward position. Keeping both giants happy could mean a transformative economic boost; angering one or the other could bring heavy costs."
- Vietnam is becoming an increasingly important producer of low-cost consumer goods amid China's efforts to transition towards higher-tech, higher-value production. While many southeast Asian nations have more overtly become allied with either China or the US, Vietnam has continued to foster links with both sides. Given Vietnam's strategic position and increasing prominence in global supply chains the strength of its relations with Beijing and Washington will continue to garner international attention.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.