Research On Trade Effect Of Sino-vietnamese Under The Framework Of CAFTA

The establishment of the China-ASEAN Free Trade Area(CAFTA)is a great attempt by China and ASEAN countries to seize historical opportunities and has a relatively important positive role in promoting cooperation in national economies,trade and investment in the region.China and Vietnam resumed normalization of diplomatic relations in 1991,and trade cooperation between the two countries started relatively late.The rapid growth of bilateral trade is inseparable from the relevant institutional arrangements of the China-ASEAN Free Trade Area.Under the framework of CAFTA cooperation,China and Vietnam have made great achievements in the trade of goods.Vietnam surpassed Malaysia in 2016 to become China's largest trading partner in ASEAN.Based on the summarization of existing theories and literatures,this paper examines the trade creation and trade diversion effects of the two countries by descriptive analysis and the method of developing "single country model" to expand the trade gravity model.By calculating the Display Comparative Advantage Index(RCA Index)of China and Vietnam in 2002-2016 and the Intra-Industry Trade Index(GL Index)of Sino-Vietnamese Bilateral Trade,the paper analyzes the construction of CAFTA and the competitiveness of the two industries.The impact of the Sino-Vietnamese industrial trade model.The study concluded that,firstly,the establishment of CAFTA has brought trade creation and trade diversion effects to both countries,and the trade creation effects of both countries are greater than their respective trade diversion effects.Both countries have gained positive net in trade cooperation.welfare.Second,the establishment of CAFTA has different effects on the development of various industries in China and Vietnam,and the comparative advantages of some industries have been strengthened.Third,Sino-Vietnamese trade is dominated by inter-industry trade under the framework of the free trade zone,and the trade intensity between industries has increased slightly.Only a small number of industries have switched from the original inter-industry trade to intra-industry trade.Finally,through summarizing the conclusions of the study,it points out the main problems existing in Sino-Vietnamese trade,and puts forward relevant suggestions for the further cooperation and development of China-Vietnam trade under the framework of the free trade zone.This paper suggests:First,China and Vietnam should maintain economic growth,increase people's income,and raise consumption levels.Second,strengthen government communication and non-governmental exchanges to create a harmonious external environment.Third,it is necessary to strengthen the allocation of domestic trade resources and establish a unified import distribution channel.Fourth,adopting the PPP model to promote the construction of infrastructure projects.Fifth,it is necessary to continue to reduce trade tariffs and vigorously reduce non-tariff barriers under the CAFTA framework;Sixth,Deepen the capacity cooperation between China and Vietnam under the "One Belt,One Road" initiative.