On April 15, 2025, the Export-Import Bank of China announced a significant move in the financial market by issuing two types of thematic bonds worth 12 billion yuan (approximately 1.66 billion US dollars). This issuance, which took place on the previous Thursday and Friday, aims to enhance the quality and efficiency of Chinese foreign trade while supporting infrastructure connectivity related to this trade, according to the bank.
The bonds, structured with maturities of one year and ten years, attracted considerable interest from both domestic and international institutional investors. The funds raised will specifically target credit loans for foreign trade, providing much-needed financial support to the sector.
The Export-Import Bank of China, a state-owned policy bank, plays a crucial role in supporting foreign trade, investment, and international economic cooperation for the country. Recently, the bank has launched special programs to expand financial support for small and micro foreign trade companies, strengthen backing for private enterprises involved in international trade and foreign investments, and enhance cooperation under the Belt and Road Initiative.
In a related development, Mr. Ngo Phuong Cuong, Head of the Lao Cai Economic Zone, highlighted the ongoing collaboration between the Lao Cai Railway Station in Vietnam and the Son Yao Railway Station in China. During a recent meeting, both sides agreed to focus on improving transport regulations and increasing the volume of goods imported and exported through their respective borders.
Both parties have committed to enhancing the organization of goods delivery and receipt at Hai Phong and Lao Cai, concentrating on transporting goods to China. They aim to establish regular train trips, averaging three pairs of trains daily. To facilitate this, China has increased the number of empty cargo trucks and containers, while Vietnam is working to reduce the customs clearance time for Chinese vehicles, thereby improving transport efficiency.
However, challenges remain. The two sides acknowledged issues related to congestion on international transport routes and delays caused by the growing number of vehicles at the border gates. To tackle these problems, they have agreed to prioritize international transport routes, expedite the clearance of transport trucks, and ensure that trains arrive on time.
Statistics from the Lao Cai Economic Zone indicate that since the beginning of the year, the zone has received 390 international freight trains, with a total export volume of 78,658 tons. This figure reflects a decline in both the volume of goods and the number of trains compared to the same period in 2024, where 514 trains were received and 116,024 tons of goods were exported. Nonetheless, the overall trend for import and export activities through the border gates in Lao Cai has remained relatively stable.
Both the Lao Cai and Son Yao economic zones have agreed to actively research sources of goods and their consumption, increasing the exchange of information to facilitate the transportation of goods via international routes. This collaboration aims to bolster the volume of international transport significantly.
Recent statistics also reveal that the volume of imports and exports through Lao Cai increasingly represents a large share of the total border trade in the region. The border gates have provided clear advantages for local businesses and neighboring areas, helping to reduce transportation costs and enhance competitiveness in the international market.
To further improve the capacity of international freight routes through Lao Cai and increase competitiveness with other transport modes, the Vietnamese railway sector has proposed simultaneous solutions and long-term strategies. These include developing and expanding the Lao Cai station to meet rising transport demands, modernizing railway systems, warehouses, and cargo handling equipment to enhance operational efficiency, and constructing modern logistics centers in the Lao Cai area to improve the supply chain.
Additionally, strengthening links with sea routes and major industrial zones is essential to boost trade exchanges. Another critical solution involves applying digital technology in community management and customs processing to reduce clearance times. This digital shift will facilitate smoother operations and strengthen cooperation with China to address border procedure challenges.
Despite achieving noticeable results, Mr. Ngo Phuong Cuong candidly acknowledged that the volume of goods imported and exported via the international railway through Lao Cai does not currently meet expectations and does not reflect the importance of this key border gate. The railway industry has recognized this situation, but due to limited resources, past proposed solutions have only been temporary.
Looking ahead, a project to construct a key border route linking Lao Cai, Hanoi, and Hai Phong is set to be implemented. This project aims to comprehensively connect the border gate and is expected to create substantial growth in railway freight transport. The international goods transport route through Lao Cai is anticipated to undergo significant improvements in the near future.
This development will serve as an important driving force, not only to enhance local economic growth but also to maximize the benefits of railway transport and the strategic location of Lao Cai. As both China and Vietnam continue to strengthen their economic ties, the potential for increased trade and investment through these channels appears promising.
