A Study On Sub-Regional Cooperation Of Southchina And Vietnam

South China means Economic Circle of South China, which composes of Hong Kong, Macao, Taiwan, Guangdong province, Fujian province, Hainan province and Guangxi province. Its area amounts to over six hundred square kilometer. Its GNP in 2000 is four hundred billon dollars. And it has a 175-million population. Its economy grows fastest in the world. Since the cost of manufacture and the price of earth become higher, Economic Circle of South China is now losing the comparative advantages in labor-intensive industry and facing industrial upgrade and adjustment. Industrial upgrade and adjustment mean that some industries will be moved out. Vietnam is the best country to hold these industries. Here are the reasons: first, since reform and open measures were put into practice in 1986, Vietnamese economy has developed a lot. Its society keeps stable, too. From 1991 to 2000, Vietnamese economy grew fast. Its average GDP reached 7.56 percent annually. Second, the price of Vietnamese labor and earth are cheap. And it is one of ASEAN members. By cooperating, Vietnam will be a bridge that helps facilitate entering ASEAN. So, cooperation between South China and Vietnam will make an important sense to Economic Circle of South China and Chinese economy.This paper firstly discusses the concept of sub regional cooperation and the relative international trade theories. Then it analyses the possibility of sub regional cooperation between South China and Vietnam. Third, traffic as a pioneer, tourism and trade as guides, improving industry distribution and creating growth triangle in Northern Harbor are suggested. This paper aims at promoting sub regional cooperation between South China and Vietnam and accelerating the course of setting up the free-trade area between China and ASEAN.