Chinese President Xi Jinping is visiting Vietnam from April 14 to 15 at the invitation of Vietnamese officials, including General Secretary Tô Lâm and State President Lương Cường.

The visit aims to enhance bilateral relations, particularly in agricultural trade.

China is Vietnam’s largest export market for agricultural, forestry, and fishery products.

In 2024, trade in these sectors reached US$17.8 billion, reflecting a 14.6% increase from the previous year.

Vietnam exported US$13.5 billion worth of goods to China, which included fruits and seafood. Meanwhile, imports totaled US$4.3 billion.

Both countries have signed 24 agreements aimed at facilitating trade.

🔗 Source: Ministry of Agriculture and Rural Development

🧠 Food for thought

1️⃣ Agricultural specialization accelerates as Vietnam adapts to Chinese demand

Vietnam’s agricultural sector is rapidly specializing in response to Chinese market preferences, with clear evidence in crop selection and cultivation practices.

The banana industry exemplifies this transformation, expanding to approximately 130,000 hectares yielding 2.1 million tonnes annually, with farmer profits increasing from VND15-20 million to VND30-40 million per hectare as China’s demand grew 1.

This market-driven agricultural shift extends to other products, with China now accounting for approximately 90% of Vietnam’s lychee exports, 80% of dragon fruit exports, and over 90% of cassava and cassava-based products 1.

Vietnamese farmers and exporters are strategically focusing on these high-demand products, as evidenced by the Ministry of Agriculture’s targeted approach of granting growing area codes specifically to ensure compliance with Chinese import standards.

The coconut industry demonstrates how quickly this specialization occurs, with exports projected to exceed US$1 billion by 2024 after new protocols allowed fresh coconut exports to China, creating a rapid growth opportunity that didn’t previously exist 1.

2️⃣ Regulatory compliance emerges as both challenge and competitive advantage

Vietnam’s agricultural exporters face increasingly stringent Chinese import regulations, creating significant short-term disruptions but potential long-term advantages for compliant producers.