The Lao Cai Economic Zone Management Board has issued a warning to provincial business associations, urging them to improve product quality and establish clear contractual agreements with Chinese businesses. This is in response to the increase in the number of detained Vietnamese cargo trucks in Hekou, China, which has been caused by substandard goods preservation and disputes over compensation and contract implementation. Despite efforts to resolve the issue, no progress has been made so far.
On the positive side, there has been a significant increase in the value of goods traded through the Lao Cai international border gate in 2023 compared to the previous year. Vietnamese agricultural products have seen a particularly high demand from China, with exports doubling in the first three months of this year. The official export of frozen coconuts and durians is expected to further boost export turnover, potentially reaching 4.5 billion USD.
The Vietnamese authorities are actively working to resolve the issue of detained cargo trucks in China while also focusing on expanding export opportunities for agricultural products through the Lao Cai border gate. To achieve success, it is crucial that businesses establish clear terms and records in contracts and improve product quality. Continued efforts to enhance trade relations between Vietnam and China will also be essential.