During a landmark visit to Hanoi, Chinese President Xi Jinping and Vietnam’s Communist Party chief, To Lam, signed 45 agreements aimed at strengthening cooperation across trade, infrastructure, technology, and aviation. The deals signal an ambitious pivot toward deeper regional integration as China courts neighbours affected by global trade tensions, particularly the US-China tariff battles.
Among the standout initiatives is the creation of a joint railway development committee, which will spearhead projects to improve cross-border transport and logistics. Vietnam, keen to reduce its trade imbalance with China, is also seeking access to preferential loans and the transfer of critical technologies to bolster domestic industries.
The timing of Xi’s visit is noteworthy. It came just days after former US President Donald Trump announced a 90-day pause on new tariffs, providing temporary relief to Vietnam. This has underscored Vietnam’s strategic position as a manufacturing hub and a key alternative route for Chinese goods destined for the United States. The country has emerged as one of the biggest beneficiaries of the trade war, attracting companies keen to sidestep rising US tariffs on Chinese products.
China remains Vietnam’s largest trading partner, with bilateral commerce topping $205 billion last year. Vietnamese industries are deeply reliant on Chinese inputs, including raw materials and machinery. Infrastructure cooperation is expanding too, with a major highlight being an $8.4 billion cross-border railway that promises to enhance regional trade flow and reduce logistics costs.
The two nations are also turning their attention to the skies. Vietnam has signalled intent to deepen aviation links, particularly through the import of Chinese aircraft. With the easing of import restrictions, opportunities are opening up for Chinese aerospace firm Comac, whose ARJ21 and C919 jets are gaining traction in the region. Vietnamese Prime Minister Pham Minh Chinh praised Comac’s growing role and encouraged investment in aircraft maintenance and service facilities.
The flurry of agreements underlines China’s drive to position itself as a more dependable economic partner, especially for countries feeling the pressure of shifting US policies. For Vietnam, the deals reflect a careful balancing act—welcoming Chinese capital and technology while preserving strategic independence and seeking more equitable trade dynamics.