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Vietnam-China border: a strategic trade hub

19 Jul 2024

By Sherine Chen    Photo:CANVA

 

Amid rising tensions between the U.S. and China, Vietnam has emerged as a key player, rapidly becoming a primary destination for outsourcing and manufacturing. The strategic location is attracting international businesses seeking alternatives to China. In the previous article, we've explored the cross-border procedures from Thailand to Laos . Today, we turn our attention to the Vietnam border. With Vietnam emerging as a key destination for outsourcing due to rising tensions between the U.S. and China, understanding the border has become very important. 

Huu Nghi border, also known as Friendship Pass, is the largest international land border gate between Vietnam and China. At Huu Nghi border gate, 250-300 vehicles carrying exported goods pass through daily. Of these, 200 vehicles transport agricultural products, while 50 vehicles carry electronic goods. The fruits exported through this border gate at this time are mainly durian, dragon fruit, jackfruit, and grapefruit. Some typical goods passing through that border gate are super-long and super-heavy items.

Recognizing the potential in warehousing infrastructure at Huu Nghi Border Gate, Xuan Cuong Co.,Ltd initiated a project to construct a parking lot and an international passenger station to facilitate the export and import of goods. This parking lot has since become a key transfer point for goods between Vietnamese and Chinese vehicles. The project currently covers 25.5 hectares, with 17.2 hectares already operational. However, this area is not enough to meet the demand for importing and exporting goods. Future plans aim to address these constraints by expanding the facility, particularly focusing on enhancing capacity to facilitate smoother and more efficient trade operations between Vietnam and China.

The equipment and infrastructure at the parking lot are modern and fully equipped. Currently, the facility has 5 units of 50-ton crane equipment, 5 units of 25-ton crane equipment, and 5 units of 30-ton crane equipment. Additionally, there are 13 forklifts, 3 container picking machines, and a support staff of 20 crane operators. 

Vietnam's investments in modern infrastructure are making it one of the best options for nearshoring. With their advanced equipment like cranes and forklifts, Vietnam can handle more trade smoothly. This capability not only helps businesses import and export goods efficiently but also boosts Vietnam's economy quickly. As companies seek new supply chain options, Vietnam's improved infrastructure positions it to play a significant role in the global economy.

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