Household appliances, bicycles, paper, etc. These items were imported in large quantities, with diverse types, low quality but cheap prices, suitable for low income levels, so after a short time they flooded the Vietnamese market. In particular, during this period, smuggled goods across the border in large quantities had a serious impact on a number of Vietnamese manufacturing industries such as: knitting, garment, ceramics, glass, bicycle manufacturing, etc.
b) Period 1996 – 2000
Goods exported from China to Vietnam during this period increased relatively steadily, abundantly and diversely in terms of types and quantities. Every year, Vietnam imports nearly 200 items from China (double the number of items Vietnam exports to this market).
Table 2.7: Some main imported goods of Vietnam from China in the period 1996 - 2000
Content | 1996 | 1997 | 1998 | 1999 | 2000 |
I. Import turnover | 329.00 | 404.40 | 510.50 | 683.40 | 1,423.2 |
II. Main products, including: | |||||
1. Gasoline | 2.90 | 2.96 | 12.80 | 46.00 | 131.60 |
2. Machinery, equipment and spare parts | 51.60 | 104.60 | 115.70 | 103.70 | 166.50 |
3. Fertilizer | 4.48 | 2.61 | 15.00 | 24.01 | 104.62 |
4. Raw materials for textile, leather and footwear | - | 11.30 | 3.10 | 39.13 | 41.84 |
5. Iron and steel | 51.01 | 90.65 | 49.48 | 42.79 | 75.06 |
6. Electronic and computer components | - | - | - | 9.02 | 20.27 |
7. CKD, IKD motorcycles | 0.23 | 0.10 | 0.81 | 46.77 | 419.01 |
8. CKD, SKD cars | 0.21 | 0.14 | 0.12 | - | - |
9. All kinds of complete cars | 2.58 | 2.57 | 3.43 | 4.38 | 2.74 |
10. Chemicals | 7.40 | - | 22.10 | 52.30 | 48.50 |
11. Pesticides | 12.90 | 10.40 | 18.30 | 20.30 | 22.50 |
12. Construction glass | 6.70 | 6.70 | 3.70 | 6.90 | 3.30 |
13. Apparel fabrics | 2.00 | 11.00 | 18.20 | 24.40 | 35.10 |
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Unit: Million USD
Source: General Department of Vietnam Customs, Import-Export Data Report Through the above data table, we can see that the major imported items during this period
are: Machinery, equipment and spare parts, in 1996 only reached 51.6 million USD, in 2000 this figure increased to 166.5 million USD, increased 3.2 times compared to 1996 and increased 60% compared to 1999, accounting for 12% of total import turnover in 2000; Petroleum products, in 1996 was 2.9 million USD, by 2000 was 131.6 million USD, increased 45 times compared to 1996. In addition, iron and steel, chemicals, fabrics of all kinds were also imported a lot during this period. The main imported machinery and equipment during this period were agricultural machinery and agricultural and forestry processing.
production, vertical kiln cement production equipment, textile machinery, fertilizer production equipment and small generators.
c) Period 2001 – 2009
Table 2.8: Some main imported goods of Vietnam from China in the period 2001 - 2009
Unit: Million USD
Product name
2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2009 | |
I.KNNK | 1,630 | 2,158 | 3.120 | 4,456 | 5,770 | 7,390 | 12,502 | 16,425 |
II. Items | ||||||||
1. Gasoline | 231.66 | 473.40 | 721.10 | 739.80 | 884.33 | 555.33 | 464.62 | 1,290.2 |
2. Machinery, equipment, spare parts | 219.36 | 347.90 | 446.80 | 607.10 | 817.55 | 1,200 | 2,394 | 4,155.3 |
3. Fertilizer | 62.31 | 57.69 | 244.20 | 391.90 | 294.00 | 298.73 | 588.44 | 596.03 |
4. Textile, garment, and footwear NPL | 74.12 | 127.90 | 200.50 | 290.20 | 323.60 | 304.76 | 339.32 | 407.44 |
5. Iron and steel | 54.74 | 69.05 | 108.20 | 409.50 | 718.05 | 1,296 | 2,335 | 815.66 |
6. Electronic and motorcycle links. | 21.96 | 42.26 | 63.86 | 103.80 | 155.38 | 243.18 | 517.72 | - |
7. CKD, IKD motorbikes | 433.22 | 121.80 | 47.71 | - | 15.97 | 20.51 | 53.91 | 20.32 |
8. Cars of all kinds | - | 3.50 | 3.81 | 5.20 | - | 22.84 | 164.51 | 152.58 |
9. Motorcycle parts and accessories | 0.92 | 118.92 | 101.31 | 103.68 | 133.67 | |||
10. Pesticides. | 11.30 | 26.80 | 26.00 | 62.44 | 264.25 | 118.99 | 169.49 | 202.13 |
11. Chemicals | 51.50 | 95.50 | 108.10 | 123.80 | 169.88 | 203.83 | 303.47 | 399.11 |
12. Garment fabrics. | 48.90 | 183.30 | 324.00 | 447.30 | 661.20 | 895.60 | 1,300 | 1,566.0 |
13. Plastic | 6.80 | 10.50 | 14.80 | 22.40 | 35.20 | 59.70 | 97.10 | 135.13 |
Source: General Department of Vietnam Customs, Import-Export Data Report
Through the above table, we can see that during this period, Vietnam's imported goods from China increased sharply, the growth rate of import turnover was much higher than Vietnam's export turnover to China in the same period from 2001 to 2009, specifically, the import turnover in 2001 was 1,629.9 million USD, in 2009 it was 16,425 million USD, more than 10 times higher than in 2001, while the export turnover in 2009 was only about 3.47 times higher than in 2001, however, the structure of imported goods from China has changed little in recent years. Most imported goods increased over the years, except for petroleum products which decreased in 2006 and 2007. The major imported goods and groups during this period were: Machinery, equipment and spare parts accounting for 16%, petroleum products 11%, iron and steel 14%, textiles and garments 8%... The remaining items such as textile and garment materials, leather, shoes, fertilizers, pesticides, chemicals, consumer goods... increased steadily.
In summary, through the data on Vietnam's import and export turnover to China, it shows that in the short term since 2010, Vietnam will still have a trade deficit, export turnover will still increase but at a slower rate than import turnover, and total import and export turnover in the long term will always increase with a higher rate each year than the previous year.
2.1.2.3. Current situation of smuggling and the fight against smuggling of goods across the Vietnam-China border
Along with the expansion of trade and exchange of goods across the Vietnam border
– In China, the situation of smuggling and trade fraud is also complicated. This is where smugglers bring goods into Vietnam, accounting for a large proportion of cases and discovered goods. According to statistics on the smuggling situation on the land border from 1993 to 1999, the Vietnam-China border had 1,863/4,865 total cases discovered, accounting for 38.36% compared to the whole country; 2,413/7,589 total detected subjects, accounting for 31.81%; seized goods were 46.2/139.4 billion
copper. On the land border, smuggled goods and illegal transportation into Vietnam are of all kinds, including addictive substances, explosives, and books and newspapers with bad content. Goods are often transported across the border by porters along trails on both sides of the border gate, then using shipment invoices and purchase invoices to circulate the goods in order to evade import tax.
Due to the terrain conditions, smuggling activities take place along the entire route and are very complicated, concentrated at the borders of Quang Ninh, Lang Son, and Lao Cai. These are provinces with international border gates, a fairly convenient traffic system behind and near the capital Hanoi. These are locations for official and unofficial trade transactions, exchanges, and trade of goods by the State, businesses, and residents on both sides of the border.
- Method: The smuggling method is to organize a network, from the source of goods to the place of consumption, from domestic to foreign countries and vice versa. The smuggling subjects have organized their activities very sophisticatedly and cunningly to resist the inspection, control and fight of the functional forces fighting against smuggling. If they are foreigners or overseas Vietnamese, they connect with some elements and relatives in the country. If they are domestic subjects, they form an organization. There are people holding different positions or organizations with ringleaders who contribute capital, organize the delivery of goods and share according to contributed shares. Or hire porters to carry goods across the border along the trails on both sides of the border gate by splitting and collecting many times. Those who carry goods for hire are able to deposit goods or buy goods from them to transport to the gathering place, so when encountering inspection and control forces, they fight to the end for the goods. Smugglers often gather goods from across the border and then transport them inland by many different means. When transporting smuggled goods to the inland, many subjects disperse the goods to gather them in another place far from the border. In particular, smugglers use many different types of vehicles, from modern means such as: trains, cars, mobile phones, walkie-talkies to primitive means such as bicycles, shoulder poles. Based on the characteristics of each locality,
At specific times, smugglers use different methods of operation, but mainly include the following methods: secret, furtive; both secret and public and blatantly public.
Taking advantage of loopholes and shortcomings in the economic management mechanism and import-export policies of the State to conduct smuggling activities such as:
- Using small vehicles to transport and conceal smuggled goods;
- Using commercial fraud by transporting goods in excess of the prescribed tonnage, declaring less than the actual quantity transported, declaring the wrong type or disassembling the whole goods into spare parts to pay lower tax rates, taking advantage of positions, powers and working conditions to assist and conceal smuggling activities;
- Taking advantage of difficulties and complexities in terrain, loopholes and shortcomings in border management, protection and control of border gates by authorities to secretly and furtively conduct smuggling activities;
- Smuggling subjects often have relationships with degenerate elements in anti-smuggling agencies to abuse their positions and powers to compromise with smugglers or assist smugglers.
Based on the above characteristics and situations, especially since the Government issued Resolution 85/CP dated July 11, 1997 and Directive 853 dated October 11, 1997 on combating smuggling in the new situation, synchronous and urgent solutions have been proposed to combat smuggling and trade fraud in the new situation. The anti-smuggling work has been promptly and resolutely directed by Party committees and authorities of border provinces in organizing and implementing anti-smuggling tasks in the area in accordance with the direction of the Party and the State, clearly assigning responsibilities, areas and methods of operation to relevant sectors, specifically as follows:
At the border:
The Customs and Border Guard sectors are fully responsible to the local authorities for the task of combating smuggling in border areas, on the basis of focusing on direction and arranging strong enough forces, minimizing the amount of smuggled goods entering the rear lines. If there are large shipments of smuggled goods entering the rear lines, the heads of these two units are responsible to the Provincial Party Committee and the Provincial People's Committee.
In the domestic market:
- Organize the dissemination of Central directive documents, resolutions, directives, and plans of the province to Party committees, leaders at all levels, sectors, and organizations to change awareness and have specific coordination and action plans.
- Focus on directing the launching of many mass propaganda campaigns, especially in border communes and key areas with complex problems in transporting, trading, and harboring smuggled goods.
- Strengthen direction from the province to the grassroots level, consolidate the Steering Committees on smuggling at all levels and sectors, clearly define the responsibilities, areas, and methods of coordination of activities of relevant sectors and levels.
- Focus on strengthening and perfecting the anti-smuggling force, teams, inter-sectoral stations... in border and inland areas in terms of quantity and quality, promptly supplementing facilities, means, and supporting tools to serve the anti-smuggling work.
- Along with the propaganda and mobilization of people to participate in denouncing smugglers, the provinces have regularly directed sectors, levels and forces to urgently investigate and verify smuggling lines, locations and subjects, promptly combat and destroy them and strictly handle them by law, economy and administration.
- Regularly provide political and ideological education, improve professional qualifications, and review the team of officers and soldiers working against smuggling.
- Sectors and levels should strengthen the fight against the transportation and trade of prohibited goods, counterfeit goods, and goods subject to regulations requiring stamps; At the same time, strengthen business management in the area, grasp the operations of units and business households, especially import-export business units, and put business activities in order.
- Regularly organize meetings, summaries, and draw lessons from the implementation of anti-smuggling work at all levels and sectors; Timely reward organizations and individuals with achievements in the work, thereby improving the effectiveness of the fight against, prevention, and control of smuggling.
2.1.2.4. Subjects participating in import and export of goods
The subjects participating in the trade of goods between the two countries are relatively diverse, including many different components such as: state-owned enterprises, collectives and individuals from many sectors and localities across the country. From 1991 to 1995, the components participating in the exchange and purchase of goods between the two countries were mainly border residents and enterprises residing in the border areas, this is the force participating in import and export activities right from the time the two countries normalized relations. In recent years, the number of enterprises participating in import and export activities at the Vietnam - China border has increased sharply, many enterprises and individuals in provinces and cities across the country participate in import and export activities between the two countries. In addition, a number of foreign enterprises also participate in import and export activities with the two countries through companies located in border economic zones or through intermediaries such as enterprises operating in border trade. A large number of Hong Kong and Taiwanese businesses participate in the transit of goods between Vietnam and the southern provinces of China.