Vietnam-China agricultural trade poised for growth despite structural challenges

China is a key market for Vietnamese agricultural exports

Speaking at the first Vietnam–China Agricultural Trade Connectivity Forum, Vietnam’s Permanent Deputy Minister of Foreign Affairs Nguyen Minh Vu described agricultural trade as one of the most dynamic areas of economic cooperation between Vietnam and China.

He noted that growing consumer demand for safe, green and high-quality products in both countries presents opportunities to deepen cooperation. Rather than focusing solely on commodity trading, the two sides should work toward building sustainable production, processing, distribution and consumption value chains.

Chinese Ambassador to Vietnam He Wei shared a similar view, saying bilateral agricultural cooperation is evolving from traditional trade exchanges toward integrated supply chain development.

China is Vietnam’s largest export market for agricultural, forestry and fishery products and continues to maintain strong demand for tropical fruits and other agricultural commodities.

According to the Ambassador, an increasing number of Vietnamese agricultural products are now entering the Chinese market through official trade channels, creating more stable market access for farmers and businesses while opening opportunities in a market of more than 1.4 billion consumers.

Technical standards are the main challenge

Despite strong growth prospects, forum participants agreed that current obstacles are less related to market demand and more associated with increasingly stringent technical requirements.

A representative of the China Certification & Inspection Group (CCIC), said differences in testing standards, quality assessment methods, traceability systems and regulatory requirements continue to create challenges for exporters.

He noted that inconsistencies in laboratory testing results and the lack of mutual recognition mechanisms can lead to trade disruptions. Harmonising technical standards and improving data connectivity between regulatory agencies will therefore play a critical role in facilitating agricultural trade between the two countries.

Nguyen Quoc Manh, deputy director of Vietnam’s Department of Crop Production and Plant Protection, pointed out the fruit and vegetable sector is entering a new development phase.

While export growth in the past was largely driven by production volume, international markets now place greater emphasis on product quality, food safety, cultivation area codes, packing facilities, environmental compliance and traceability.

“The sector needs to shift from a production-oriented mindset to an agricultural economy approach, producing what the market demands rather than exporting only what is available,” he stressed.

Technology, logistics and finance identified as key drivers

Participants highlighted digital technology as one of the most effective solutions for improving supply chain efficiency.

According to the CCIC, the organisation is implementing an AI-powered traceability system for durian exports to China. The platform digitalises the entire supply chain, from cultivation and packaging to transportation and customs clearance, while connecting directly with customs management systems.

Initial results indicate that customs clearance times for some shipments have been reduced from several days to around 24 hours, and in certain cases to only a few hours.

Businesses also emphasised the importance of upgrading logistics infrastructure and cross-border payment systems.

Representatives of Agricultural Bank of China Limited - Hanoi Branch informed that the institution is developing direct settlement solutions using the Chinese yuan and Vietnamese dong, while expanding trade finance programmes to help agricultural exporters access capital more efficiently, reduce transaction costs and mitigate foreign exchange risks.

Experts noted that stronger integration between finance, logistics and e-commerce platforms will be essential for improving the competitiveness of Vietnamese agricultural products in the Chinese market.

Building a sustainable export ecosystem

Vu Ba Phu, director of the Vietnam Trade Promotion Agency under the Ministry of Industry and Trade, shared that the success of Vietnam’s durian exports demonstrates the vast potential of Vietnamese agricultural products in China.

However, he cautioned that such advantages may not be sustainable if businesses continue to rely primarily on price competition and raw commodity exports.

Looking ahead, he suggested that the priority should be building a sustainable export ecosystem through standardised production areas, greater investment in processing industries, stronger logistics and cold-chain infrastructure, expanded cross-border e-commerce and closer coordination between businesses and regulatory agencies.

Forum participants agreed that digital transformation, modern logistics infrastructure and harmonised technical standards will be the three key drivers for elevating Vietnam-China agricultural cooperation in the years ahead.

As bilateral economic relations continue to deepen, developing transparent, sustainable and fully traceable agricultural value chains is increasingly seen as the most effective pathway for Vietnamese products to expand market share, increase value-added production and strengthen their position in the Chinese market.

Market connectivity boosts Vietnamese fruit exports to China

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