Since Vietnam and China normalised their relations in 1991, bilateral cooperation has developed well in all areas, benefiting the two countries. In 1999, Vietnamese and Chinese leaders identified the motto of “friendly neighbourliness, comprehensive cooperation, durable stability and future oriented thinking” to bolster bilateral ties in the 21^st century.

In 2000, the two sides signed a joint statement on comprehensive cooperation to materialise the motto and agree to become “good neighbours, good friends, good comrades and good partners”. Eight years later, they agreed to establish the comprehensive strategic cooperative partnership and a hot line between their top leaders. 

Both countries celebrated 60 years of their diplomacy in January 2010 and selected 2010 as the Vietnam-China Friendship Year. Diverse activities were held in their respective countries to promote mutual understanding.

The Vietnam-China steering committee for bilateral cooperation, which was established in 2006, has organised five sessions to set the course for increasing comprehensive cooperation in various areas.

The Communist Party of Vietnam and the Communist Party of China have established a mechanism for cooperation and have regularly maintained exchanges. They have organised six theoretical symposiums on the Party’s leadership role and are preparing for the upcoming session to be held in China late this year.

The two countries have paid due attention to cooperation in personnel training. Between 2007-2010, Vietnam had sent 8 Party and State delegations and 6 department-level delegations to study Master’s and PhD courses in China. They have also boosted cooperation in other areas such as diplomacy, security, and national defence, with many agreements signed.

Vietnamese and Chinese localities have increased exchange of visits, signed cooperative agreements and organised seminars and exhibitions.

The two countries have worked closely at regional and international forums, especially at the UN Security Council in 2008-09 when Vietnam was a non-permanent member of the UN Security Council and in 2010 when Vietnam was the chairman of the Association of Southeast Asian Nations (ASEAN) and the ASEAN Inter-Parliamentary Assembly (AIPA).

Economic and trade ties between Vietnam and China have grown and flourished constantly. Since 2004, China has been Vietnam’s leading trade partner. In 2007, two-way trade hit nearly US$16 billion, fulfilling the target three years ahead of schedule. In 2010, the figure reached more than US$27 billion, making up 17.4 percent of Vietnam’s import-export value. In the first half of 2011 alone, two-way trade was nearly US$16 billion.

Progress has been made in investment cooperation, with many big Chinese groups keen to invest in Vietnam. By July 2011, China had 805 operational projects in Vietnam, capitalised at nearly US$4.2 billion, ranking 14^th among foreign investors in the country.

The ASEAN-China Free Trade Area (FTA) agreement took effect in 2010, offering more opportunities for Vietnamese businesses to increase trade exchanges and investment when many commodities have enjoyed import duties of between 0-5 percent.  

China has also increased preferential credits for Vietnam to implement economic cooperation projects. They include those to build the Sin Quyen copper exploitation and processing plant, the Ha Bac nitrogen fertilizer plant, the Quang Ninh No1 & 2 thermo-electric power plants, a rural telecommunication network, and the Hanoi-Ha Dong railway line.

The Chinese government has also provided non-refundable aid for youth exchanges and upgrade of hospital facilities.

The two countries have increased cooperation in education, culture and sports. Every year, China has provided 130 scholarships for Vietnamese students. Currently, 13,000 Vietnamese students are studying at Chinese universities. Meanwhile, more than 3,500 Chinese students are studying in Vietnam, mostly majoring in Vietnamese studies, tourism and business.

Currently, China is Vietnam’s biggest tourist market. In the first five months of this year, about 540,000 Chinese tourists travelled to Vietnam, accounting for one fifth of the total number of foreign arrivals to the country.

Vietnam and China have signed an agreement detailing fundamental principles in order to settle territorial and border issues. They have conducted negotiations on border delineation on land, in the Bac Bo (Tonkin) Gulf and at sea. They have signed a treaty on land border demarcation, an agreement on the Bac Bo Gulf boundary delineation, a fishing cooperation agreement, and a protocol on fishing cooperation in the Gulf.