provided a fundamental legal corridor for trade relations such as agreements on trade, border trade, economic cooperation, payment, and overland, air and railway transport. Last year, two-way trade reached a record high with US$2.5 billion, up 87.1% from 1999. China has become Vietnam's fourth largest trading partner after Japan, Singapore and Taiwan.
Vinh attributes the increasing trade to the determination to boost bilateral trade and economic relations by top leaders of the two countries, and Vietnam's policies encouraging export to China. The two countries have decided to increase bilateral trade to US$5 billion in the 2001-2005 period.
A multi-level market. Ho Quoc Phi, Vietnamese trade counselor in Beijing, says China is an easy market. This is both an advantage and a shortcoming for Vietnamese goods. In a report on ten years' trade with China, Dao Ngoc Vinh remarks that the quality of goods exchanged between Vietnam and China does not reflect truly the strength and economic development of each country. In border trade, counterfeit and inferior goods make up a large volume, creating a negative impact on consumers.
Vinh points out that the fundamental advantage which Vietnam can enjoy when China enters the WTO is its commitment to offering the most favored nation status to non-WTO ASEAN countries. "China has also pledged to open its market to a number of commodities. This will cause no problems for Vietnam in terms of trade policy. Trade methods do not have to change much. What Vietnam should do is enhance its competitiveness," Vinh noted.
Vietnam considers China a strategic market in its export strategy for the next five years.

China-Vietnam trade last year reached US$2.47 billion. According to the Ministry of Trade, China has become Vietnam's fourth largest trading partner after Japan with US$4.87 billion, Singapore US$3.65 billion and Taiwan US$2.56 billion.