Research On The Construction Of China-Vietnam Economic Corridor Under The Background Of "The Belt And Road" Initiative

Recent trends show a significant increase in orders moving from China to Vietnam.China's Pearl River Delta,for example,has long been considered one of the main factory hubs for global manufacturers,particularly from Hong Kong,but it is now too expensive for many to stay in the region.Over the past few years,a growing number of companies have moved operations from China to Vietnam to escape rising costs and an increasingly complex regulatory environment.Vietnam is strategically positioned for foreign companies doing business across Southeast Asia as an ideal export hub for other Asean markets.Vietnam is emerging as a clear leader in low-cost manufacturing and procurement compared with other developing markets in the region,with manufacturing accounting for 15.28 per cent of gross domestic product in 2017.Labour costs in Vietnam are now 50 per cent of those in China and about 40 per cent in Thailand and the Philippines.As Vietnam's Labour force grows year by year,Vietnamese workers have become cheaper,younger and more skilled.Another driver of Vietnam's growing popularity is its free trade agreement(FTA)—most notably the trans-pacific partnership comprehensive progress agreement(CPTPP)and the EU-Vietnam free trade agreement.The regional comprehensive economic partnership(RCEP)is also under negotiation.When these trade agreements come into force,Vietnam's exports will have free access to many of the world's largest markets,with few tariffs or restrictions.Vietnam has become more investor-friendly in recent years when it comes to regulation and financial incentives.The government has taken a number of steps,including reforming the financial sector,simplifying business regulations and improving the quality of the workforce.Since the mid-2000s,the government has offered highly competitive financial incentives to companies seeking to do business in the country,in addition to a zero withholding tax on dividends sent abroad and a corporate income tax rate of just 20 per cent.These advantages make Vietnam the primary"purchasing economy"in the eyes of many companies.Since the "the Belt and Road " Initiative was put forward in May 2004,China and Vietnam have continuously strengthened strategic alignment and achieved clear policy communication intention,increasing investment cooperation and rapid development of trade cooperation.Looking ahead to the future of"the Belt and Road " Initiative in Vietnam,the two countries' development strategies will be more precisely aligned,infrastructure connectivity will be more specific and trade cooperation will be more balanced.In addition,the all-round cooperation between China and Vietnam will move towards greater scale,wider fields and deeper development.By analyzing the China-Vietnam economic corridor,this paper provides theoretical support and suggestions for the construction of the corridor.