Appreciation Of RMB On The Impact Of Sino-Vietnam Trade

Vietnam and China, the two countries are friendly neighbors be linked mountains and rivers, traditional friendship goes back to ancient times. The frontier trade has a long history, especially in1991after the normalization of relations, bilateral economic and trade cooperation has been restored and the rapid development of bilateral trade, the strong momentum of development. The bilateral trade volume in1991was$32million, over41billion U.S. dollars in2012, an increase of1000times. But the trade imbalance, China is the largest trading partner of Vietnam, one of Vietnam’s largest trade deficit country. China export commodity in Vietnam85%manufacturing equipment for mechanical, while Vietnam exports to China is mainly agricultural products and resource products. With the future of the appreciation of the renminbi, will change the pattern?The paper uses the method of empirical analysis and normative analysis, focusing on the impact of RMB appreciation on the trade. To reveal the appreciation of the renminbi scale is in trade conditions, whether the structure changed significantly, and the foreign trade policy, according to these changes on both proposals.The results show that, the appreciation of the renminbi has not changed the basic pattern of trade. The trade between the two countries after decades of development, formed the primary agricultural products Vietnam exports to China, in exchange for the basic pattern of industrial manufactured goods, because Vietnam high dependency on China’s trade, trade of China product demand elasticity is small, therefore the Vietnam trade deficit, and inverse difference increasing. This pattern will not change because of the RMB appreciation.But the appreciation of the renminbi will strengthen the vertical division of labor system is in. Because of the devaluation of the currency, increase the Vietnam primary agricultural products, resource products competitiveness of Chinese exports, so for many years the growing scale, the industry continues to expand; when Vietnam from resource exports of primary agricultural products, for more and more foreign exchange, can further increase the Chinese manufactured goods import demand, so the vertical division system be strengthened.Finally, the thesis summarizes the background of RMB appreciation the trade problems, and solve the problem of the two countries and put forward the corresponding policy recommendations.