China also has to depend on Vietnam's economy.

China is benefiting from its relationship with Vietnam, so it cannot easily sever it.

The interdependence between economies, particularly between Vietnam and its neighbor China, is increasingly being analyzed and dissected from multiple perspectives. It's clear that Vietnam is dependent on China, but conversely, China is also somewhat dependent on Vietnam.

Dr. Vo Tri Thanh, Deputy Director of the Central Institute for Economic Management Research (CIEM), stated that China is engaging in unethical trade practices, such as border closures and bidding bans, but they cannot withdraw en masse due to the nature of Vietnam-China economic relations involving major global corporations like Samsung and Nokia. Furthermore, China is currently benefiting from favorable conditions and therefore cannot sever these ties. If China fails to adhere to the established rules, its image will only worsen.

Take the initiative in building relationships...

Regarding the current state of the textile and garment industry, Ms. Dang Phuong Dung – Secretary General of the Vietnam Textile and Garment Association – stated that the industry is currently overly focused on exports (accounting for 86% of production capacity), while being overly dependent on imported fabrics (accounting for 86% of total demand), especially from China (46%). The "bottleneck" in the dyeing and finishing stage of Vietnam's textile and garment supply chain is also a significant challenge.

For long-term and sustainable development, according to Ms. Dang Phuong Dung, the textile and garment industry maintains a strategy of increasing the localization rate by attracting domestic and foreign investment into sectors where we are weak, namely weaving, dyeing, and finishing. Participating in trade agreements is also an opportunity to attract foreign investment and share benefits once the conditions are met.

“In 2013, we attracted many investment projects in the textile, dyeing, and finishing sectors. This will be one of the best solutions to increase the localization rate and enhance the competitiveness of the textile and garment industry. We also took advantage of the benefits offered by FTAs ​​and the TPP,” Ms. Dung said.

Vietnam's timber and forestry industry is not dependent on raw materials from China. However, according to Mr. Nguyen Ton Quyen of the Vietnam Timber and Forestry Association, although the export value of timber and wood products from Vietnam to China is high (reaching US$740 million in 2013), the added value is low, the profit margin is low, and sustainable forest management is hindered. This is because Chinese traders mainly purchase wood products in their raw form, using outdated and environmentally unfriendly technology and equipment.

Furthermore, taking advantage of the lack of information among forest planters, many Chinese traders have purchased young forests, causing losses to the state, businesses, and the people. The purchase price for 1 m³ of small-diameter timber from young planted forests is only 800,000 – 1,000,000 VND/m³, and the yield is only 60-70 m³/ha. If these young forests were nurtured for another 2-3 years, the trees would have a diameter of 18-25 cm, which could be sold for 2.5-3 million VND/m³, with a yield of 100-120 m³/ha.

Based on the current situation, Mr. Nguyen Ton Quyen suggested: "We need a strategy and self-reliance to address the situation of China's acquisition and exploitation of Vietnam's forest resources."

Chinese investment in Vietnam is also a reason for the increase in import turnover. By the end of 2011, China had more than 820 investment projects in Vietnam, with a total registered capital of US$4.2 billion, ranking 14th among countries and regions investing in Vietnam. Chinese contractors have won bids for many construction projects in Vietnam.

Vietnam is always at a disadvantage.

According to economic experts, in this era of integration, we cannot say that we must be 100% self-sufficient; we must participate in global supply chains. By actively participating, we have a better advantage.

To gain a clearer understanding of the current state of Vietnam-China economic relations, economist Nguyen Minh Phong argues that Vietnam is facing increasing pressure from a growing trade deficit with China, both in scale and proportion; in particular, the trade deficit with China consistently accounts for a high percentage of the country's total trade deficit.

According to Mr. Nguyen Minh Phong's analysis, the trade deficit with China is largely concentrated in raw materials, components for assembly and processing, and machinery and equipment for export production. Essentially, Vietnam is acting as a low-cost export bridge for China's strong industries. This development is pushing the Vietnamese economy deeper into dependence on China and into a low-cost processing role. While the trend of boycotting Chinese goods is spreading globally, Vietnam will certainly suffer the consequences if it continues to help Chinese goods "use its route" to penetrate the world market as it does now.

In trade and investment, China employs various promotional tactics to gain an export advantage, such as incentives, providing goods on consignment to importers, clearing and settlement, and currency swaps to encourage Vietnamese businesses to import. At several border trade cooperation forums, Chinese experts have encouraged the use of the yuan for transactions. The use of the yuan, along with informal currency exchange services at the border, has stimulated imports of Chinese goods.

In the current situation, to enhance the capacity of domestic businesses, along with promoting the "Vietnamese people prioritize using Vietnamese goods" campaign, Vietnamese businesses and agencies need to increase ordering and using each other's raw materials and products... as practical acts of patriotism and contributing to building a self-reliant and strong economy.

According to what I read in the newspaper.