Xi's Hanoi trip to spur finance ties, expert says

China and Vietnam could see greater financial connectivity as part of the expected economic dividends following Chinese President Xi Jinping's trip to Hanoi this week, a Vietnamese expert says.

"I think there is more and more collaboration (prospects)", given the many agreements signed during Xi's visit, said Tran Tuan Vinh, chief representative of the CICC Vietnam Representative Office.

Noting that the Sino-Vietnamese cooperation documents signed during Xi's visit include one on promoting connectivity between the Belt and Road Initiative and Vietnam's Two Corridors and One Economic Circle program, Vinh said this indicates that many cooperation projects will be carried out, which will require a lot of collaboration in funding and knowledge-sharing.

China International Capital Corporation is a Chinese investment bank. In September, CICC gained approval from the State Securities Commission of Vietnam to set up the Vietnam representative office, a sign of closer financial cooperation between China and Vietnam.

Vinh said the main goal of the office is to encourage knowledge-sharing between China and Vietnam and support the reform of Vietnamese state-owned enterprises because the two countries have many similarities to share in terms of economic reform, green development and technological innovation. "We look forward to working with partners from China and Vietnam to contribute wisdom and strength to the economic development of both countries," said Vinh.

The two countries' cooperation in areas such as digital economy and green development will also present opportunities for the business sector, said Vinh.

As this year marks the 15th anniversary of the comprehensive strategic cooperative partnership between China and Vietnam, Vinh said the two countries have made a lot of achievements during the period.

For example, China has been Vietnam's largest trading partner since 2004, and Vietnam is the largest trading partner of China within the Association of Southeast Asian Nations since 2016, said Vinh.

Investment flow

"We also see … a huge flow of foreign direct investment from China coming to Vietnam," said Vinh.

The Asian Development Bank said in a report on Dec 13 that Vietnam's economy is expected to grow 5.2 percent this year, while its inflation will reach 3.8 percent. It is projected to grow at 6 percent in 2024.

Chinese investment in Vietnam has been on the rise, ranking second in the first nine months of this year.

Vinh said his office hopes to help Vietnamese investors tap into the Chinese market by exploring opportunities for establishing partnerships or making joint investments.