WTO in its report said that Vietnam should stop its cross over trade with China to recover the trade gap within the country.

Import –export of commodities between the two country should be done via the official mechanism rather than across the border.

Cross border trade is a legal international economic activity between two neighboring countries. Cross trade involves exchanging commodities in small volumes and values with less paper work and less official activities.

The objective of cross border trade was to facilitate the trade in border areas to manufacture and exchange goods in small volumes and values but the policy has failed to achieve its objective according to WTO as many traders prefer cross border trade to save their taxes.

Vietnam’s general statistics office reveals that 2014 has its export value up by 21.8% as compared to last year which was $23.7 billion recorded last year.

The WTO Center functions as a channel of online consultation, discussion and support for Vietnamese business associations and enterprises about the World Trade Organization and other legal international trade issues.

The center provides legal documents, updated information, publications and training materials on WTO and other legal issues of international economic integration, according to its website.

Vietnam practiced generally cross- border trade to export most of its agricultural products

According to VFA, China usually import from Vietnam through cross border transactions. In first five months of 2014 china’s import has rose to 50% to 600,000 tonnes from last year. Near about 64% consignments between Vietnam and China has been cancelled and also China forces Vietnam to export commodities at lower prices.

Most of the local farmers prefer to export their produce through cross border as it requires less official activities and has a great demand.

A local rice trader in the southern province of Tien Giang said that he prefer to sell his goods though border because of croos border ease.

 

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