Date: 05/21/2000 Page: 2 Author: MENG YAN, Business Weekly staff

Sino-Viet Nam trade has potential that has hardly been tapped.

"It is possible to realize the US$2 billion bilateral trade goal the two countries' premiers have set for this year," said Xu Changwen, director of the Asia and Africa department of the Chinese Academy of International Trade and Economic Co-operation under the Ministry of Foreign Trade and Economic Co-operation (MOFTEC), in a fax to Business Weekly.

"But it cannot be done without good wishes and efforts from both sides," he said.

The achievement would mean an increase of US$680 million, or 51.5 per cent, from last year's trade volume.

The growth rate will more than double the 24.8 per cent average annual growth rate of bilateral trade between China and Viet Nam in 1995-99.

But Xu said trade between China and Viet Nam wavered back and forth during the period.

The 1998 trade volume between the two countries, for example, decreased 13.3 per cent from the previous year.

China's exports to Viet Nam slid under negative influences of the Southeast Asian financial crisis and slowed economic development in Viet Nam.

Devastated by natural disasters, Viet Nam's exports to China also dived.

Xu held that the two countries have not yet taken full advantage of their trade potential.

Judging from the trade structures of China and Viet Nam, the two economies are mutually supplementary, said Xu.

Industrial products, including chemical products, textiles, machinery and electronic products and audio and video products, made up the majority of China's exports to Viet Nam, according to official statistics.

China's imports from Viet Nam were mainly primary products such as minerals, rubber, plants and animals during the period.

Xu believes China should push its industrial product lines in Viet Nam.

He cited made-in-China motorcycles, which have won the hearts of Vietnamese consumers because of their competitive prices, fine looks and good quality.

He suggested that publicity on made-in-China products should be enhanced to get Vietnamese consumers' recognition.

Xu also urged China to increase its imports of oil, rubber and other materials from Viet Nam, things China needs in large quantities.

On top of these, the two countries should learn to diversify their trade and economic co-operation, he said.

Contract work and direct investment should be actively carried out across the countries' borders.

China is lagging behind Europe, the United States and other Southeast Asian countries and regions in terms of investments in Viet Nam, official statistics show.

Copyright by China Daily. All rights reserved.