Amid rising tensions over substandard goods preservation and contract disputes, more than 100 Vietnamese cargo trucks have been stored in China since last year. The Lao Cai Economic Zone Management Board has issued a warning to provincial business associations, urging them to take immediate action to prevent further detention of Vietnamese vehicles in Hekou, China.
The vehicles were held because the drivers failed to preserve the goods properly, resulting in damage and disputes over compensation and contract implementation. Despite efforts to resolve the situation, no progress has been made so far. To avoid future disputes, the management board recommends that Vietnamese and Chinese businesses establish clear terms and records in contracts to create a healthy business environment. Additionally, Vietnamese businesses are encouraged to improve product quality to maintain the reputation of their exported goods.
Despite ongoing issues with detained cargo trucks, trade relations between Vietnam and China remain strong. In fact, there has been a significant increase in the value of goods traded through the Lao Cai international border gate in 2023 compared to the previous year. This is largely due to an increase in imports of Vietnamese agricultural products by China, which have doubled in the first three months of this year. Exports of durian are expected to continue growing with official exports of frozen coconuts and durians potentially reaching 4.5 billion USD by the end of the year.
In conclusion, while there may be ongoing challenges related to contract disputes and substandard goods preservation, Vietnam remains committed to resolving these issues while also focusing on expanding export opportunities for agricultural products through its border gate with China. Clear contractual agreements, improved product quality, and continued efforts towards enhancing trade relations will be key factors for success moving forward.