Establishing a Mechanism for Trade and Logistics Cooperation in the Red River Basin
Trade 20:20 | 30/03/2026 Follow Congthuong.vn on

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Lao Cai Department of Industry and Trade signs a memorandum of understanding on strengthening trade and logistics cooperation between Vietnam and China in the Red River basin with localities in Yunnan Province (China).

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On the afternoon of March 30, at the Vietnam-China Import-Export Business Connection Conference held in Kunming City (Yunnan Province, China), within the framework of the Vietnamese trade delegation's working trip, the Department of Industry and Trade of Lao Cai Province (Vietnam) signed a Memorandum of Understanding on strengthening Vietnam-China trade and logistics cooperation in the Red River Basin with the Trade Bureaus of localities including Honghe, Kunming, Dali, Chuxiong, Yuxi, Pu'er, and Wenshan (Yunnan Province, China).

The Memorandum of Understanding was signed to implement important common understandings and the Joint Statement of the high-level leaders of the two Parties and two countries; Simultaneously, the Memorandum of Understanding on strengthening trade and logistics cooperation between Vietnam and China in the Red River Basin was signed to concretize the results of the annual conference between the Party Secretaries of Lao Cai, Lai Chau, Tuyen Quang, and Dien Bien provinces (Vietnam) and the Party Secretary of Yunnan province (China), thereby promoting the economic and trade development of the Red River Basin region, and resolving bottlenecks in cross-border logistics, trade, customs clearance, and industry.

[Image caption: Signing ceremony of the Memorandum of Understanding on strengthening trade and logistics cooperation between Vietnam and China in the Red River Basin. Photo: Minh Trang]

The parties agreed to establish a cooperation mechanism on trade and logistics between Vietnam and China in the Red River Basin. The Memorandum of Understanding clearly demonstrates a new approach, shifting from individual cooperation to building a cross-border trade and logistics ecosystem, with the active participation of the government and the business community.

[Image caption: Signing ceremony of the Memorandum of Understanding on strengthening trade and logistics cooperation between Vietnam and China in the Red River Basin. Photo: Minh Trang]

The parties agreed to establish a Memorandum of Understanding on trade and logistics cooperation between Vietnam and China in the Red River Basin. The Memorandum of Understanding clearly reflects a new approach, shifting from individual cooperation to building a cross-border trade and logistics ecosystem, with the active participation of the government and the business community.

[Image caption: Signing ceremony of the Memorandum of Understanding on strengthening trade and logistics cooperation between Vietnam and China in the Red River Basin.] Accordingly, this cooperation mechanism is based on important multilateral frameworks such as the Regional Comprehensive Economic Partnership (RCEP) and the ASEAN-China Free Trade Agreement (ACFTA), aiming to build a "seamless, stable, and resilient" production and supply chain.

In an interview with the Industry and Trade Newspaper, Mr. Nguyen Huy Tuong, Deputy Director of the Department of Industry and Trade of Lao Cai province, emphasized that the core of this cooperation mechanism is to address long-standing bottlenecks in border trade, especially logistics and customs clearance. When these stages are synchronized, costs will decrease, time will be shortened, and the competitiveness of businesses on both sides will be significantly improved.

One of the important pillars of cooperation is promoting "three-layer connectivity": infrastructure connectivity (hard connectivity), institutional and standard connectivity (soft connectivity), and human and business connectivity (heart-to-heart connectivity). This approach demonstrates a comprehensive approach, not only focusing on infrastructure investment but also emphasizing regulatory harmonization, strengthening trust, and fostering interaction among market participants.

In particular, the focus on enhancing the capacity of the Lao Cai - Ha Khau border gate is considered a "breakthrough." Both sides agreed to promote the construction of smart border gates, applying digital technology in management, supervision, and customs clearance of goods. This is an inevitable trend in the context of the strong development of cross-border e-commerce, requiring fast and transparent processing speeds.

The signing ceremony took place within the framework of the Vietnam-China Import-Export Business Networking Conference held in Kunming City (Yunnan Province, China). Photo: Do ​​Nga

The cooperation mechanism also aims to develop border industrial zones as "policy laboratories," where incentive models, supply chain connections, and mutual support between businesses of the two countries can be tested.

Expanding the Scope of Substantive Cooperation
One of the top priorities is to enhance trade facilitation at border crossings. The parties commit to close coordination between management agencies, establishing regular communication mechanisms, and improving measures to facilitate trade in key commodities, especially fresh agricultural products – a group sensitive to time and storage conditions.

Mr. Nguyen Huy Tuong stated: “Lao Cai has a significant advantage in exporting agricultural products such as pineapples, tea, cinnamon, and medicinal herbs. However, the biggest bottleneck remains logistics and preservation. When China supports the construction of specialized warehouses, especially for cinnamon essential oil products, the opportunity to expand the market will be very clear.”

Besides traditional agricultural products, the Memorandum of Understanding also expands the scope of cooperation to include high value-added items such as medicinal herbs and processed foods, while promoting the import of suitable products from China, aiming for trade balance.

In particular, in the field of cross-border e-commerce, both sides agreed to study models suitable to the region's specific characteristics, while promoting the establishment of bilingual Vietnamese-Chinese livestreaming training centers. This includes leveraging...

Using digital platforms like Douyin or TikTok to promote products is expected to open up new consumption channels, especially for small and medium-sized enterprises (SMEs).

Simultaneously, both sides will implement solutions to reduce logistics costs, optimize transportation routes, and promote multimodal transport combining road, rail, and water transport. Building a smart logistics platform, integrating data and services, is also set as a long-term goal.

Within the framework of the Conference, businesses from both sides had the opportunity to interact and exchange ideas to expand cooperation. Photo: Do ​​Nga

Another important initiative is the establishment of the “Red River Basin Trade and Logistics Business Community.” This will be a non-profit platform connecting import-export businesses, logistics companies, e-commerce businesses, and industry associations from both countries. This community will serve as a policy feedback channel, helping management agencies promptly understand and resolve practical issues.

“We expect the business community to become the leading force, promoting substantive cooperation. The State provides the framework, but businesses are the main actors in operating and effectively exploiting opportunities,” Mr. Nguyen Huy Tuong expressed.

Regarding the implementation mechanism, both sides agreed to maintain regular meetings every six months to assess progress, exchange issues, and adjust policies as needed. This demonstrates the flexibility and adaptability of the cooperation mechanism in the context of a rapidly changing international economic environment.

The establishment of a trade and logistics cooperation mechanism in the Red River basin could become a reference model for other border regions. Once the “bottlenecks” in infrastructure, institutions, and costs are removed, the Red River basin can fully develop into a dynamic economic corridor, deeply connected to regional and global value chains.

Minh Trang - Do Nga