China and Vietnam are looking to broaden bilateral trade as Chinese Premier Li Qiang and Vietnamese Prime Minister Le Minh Hung discussed expanding cooperation in energy, the digital economy, artificial intelligence, and finance during a phone call on Monday.
The two sides agreed to work towards expanding the scope and improving the quality of bilateral trade, according to Chinese state media. The call was placed at the request of the Vietnamese side.
China has been Vietnam's largest trading partner for many years, with bilateral trade surpassing US$200 billion annually. Vietnam, in turn, is China's largest trading partner within the Association of Southeast Asian Nations (ASEAN). The two countries share extensive supply chain linkages, particularly in electronics and manufacturing, where Chinese components are assembled in Vietnamese factories for global export. This economic interdependence has deepened steadily since the two countries normalised diplomatic relations in the early 1990s.
The conversation comes as Vietnam continues to navigate a complex balance between its economic reliance on China and its expanding security and investment ties with the United States. Washington has deepened its strategic partnership with Hanoi in recent years, with the United States viewing Vietnam as a key partner in its broader regional engagement. Vietnam has also pursued trade agreements with the European Union and other partners, diversifying its economic relationships while maintaining close cross-border ties with China.
Chinese state media did not disclose specific trade targets or timelines from the call. The mention of expanding cooperation in energy and mineral resources, however, signals potential new avenues for Chinese investment in Vietnam's power generation and mining sectors. Vietnam has been investing heavily in renewable energy, and Chinese firms are already active in the country's solar and wind power projects. Vietnamese officials have previously welcomed Chinese investment in energy infrastructure as the country faces rising electricity demand to support its manufacturing-driven economy.
The call between Li and Le Minh Hung, who took office as Vietnamese prime minister in 2025, reflects ongoing high-level engagement between Beijing and Hanoi. The two sides maintain regular exchanges through bilateral mechanisms and multilateral forums such as ASEAN-led platforms. Trade working groups and investment cooperation committees continue to meet periodically to address barriers and identify new areas for collaboration.
Vietnam's position as a manufacturing hub has strengthened in recent years as global companies have shifted some production capacity from China to diversify supply chains. Despite this trend, Chinese components and raw materials remain integral to Vietnamese manufacturing output, underscoring the deeply interwoven nature of the two economies.
Sources: gov.cn/SCIO
