The economic growth slowdown and the Government’s announced demand stimulus package have both raised concerns that China-made cheap commodities will avail the opportunity to flock into Viet Nam.

However, according to Vi Cong Tuong, Deputy Head of the Lang Son province Customs Agency, who has spent many years keeping close watch over Vietnam-China cross-border trade, this is not a concern at all.

He said:

It is true that China’s exports have been sliding due to the difficulties of the global economy, which means that a big volume of commodities has been left unsold. However, in fact, China’s products are cheap not only now, but they have been always cheap.

In Viet Nam, the economic growth slowdown has forced people to tighten their purse strings. Therefore, they have to be more fastidious when making purchases, which makes me think that that cheap commodities that do not have a high-quality will not be the choice of many consumers.

In cross-border markets, travelers nowadays do not make massive purchases as they did in previous years. Moreover, local mass media have been paying appropriate attention to persuade local consumers to use locally-made products. Therefore, I think there is nothing to worry about.

As such, the smuggling this year will not be as serious as it was in previous years?

In general, the smuggling has decreased in comparison with the previous year. However, our strength these days has still been gathered on the fight against smuggling. Right in November 2008, the provincial customs agency began building up concrete anti-smuggling programs which mobilizes force from many relevant agencies and branches.

Which products are most favored among smugglers?

During Tet, consumer products, like clothes and fabric, which have high tax rates and firecrackers are the commodities that smugglers are most interested in. As for poultry, the smuggling not only occurs during pre-Tet days, but has been taking place regularly.

Lang Son has two border gates with China, which proves to be favorable for trade and tourism. Have you see any unusual things in the border-gate trade activities in this year in comparison with previous years?

It is true that the difficulties of the national economy have made the trade activities at border gates quieter this year.

Due to the local production stagnation, the volume of imported material and machines in the last six months of 2008 saw a sharp decrease.

Meanwhile, Vietnam’s exports to China, which are mostly traditional farm produce, have not seen any considerable changes.

It is expected that the national economy will be able to recover in the third quarter of the year. Therefore, I think that the trade activities in the border gate areas will only become more bustling in the second half of 2009

I personally think that the two way trade between Vietnam and China in 2009 would be just the same as the highest point of 2008. In 2008, the two way trade reached $1.3 billion in only the first half, but it then reached $300 million in the second half.

* In 2007, the two way trade between Vietnam and China reached $1.1 billion. In 2008, the figure was $1.6 billion, of which Vietnam exported $230 million worth of products, mainly farm produce. Vietnam’s main imports from China were equipments, materials and automobile parts. (TBKTVN)