"Made in China" construction machinery popular in Vietnam market

Twenty years ago, the liberation of shoes was a hot commodity in Sino-Vietnamese border trade; 10 years ago, Chinese-made VCDs became household names in Vietnam; today, excavators and other Chinese-made construction machinery products are popular in Vietnam. Relevant data show that China-Vietnam bilateral trade reached 37.7 million U.S. dollars in 1991, and it quickly grew to 27 billion U.S. dollars in 2010, an increase of nearly 700 times. In 2010, the trade volume between the two countries was 27.33 billion U.S. dollars, an increase of 28% from 2009. China ranks third among the major importing countries in Vietnam. In the huge Sino-Vietnamese trade data, export volume of construction machinery products accounted for a relatively large amount, and Vietnam and Southeast Asian markets have also become emerging hot areas for the export of construction machinery.

As one of the rapidly developing countries in Southeast Asia, Vietnam’s economy has maintained an orderly growth. According to a senior analyst from China Construction Machinery Business Network, there are three main reasons for the increase in the import value of construction machinery products in Vietnam. First, with the development of Vietnam's economy, Vietnam’s infrastructure has entered a period of rapid growth. Infrastructure construction projects such as housing construction, highways, and power stations have been launched. The Ministry of Transport and Transportation recently stated that it has completed and there are few highways under construction. To meet the needs of the country’s economic and social development, an additional 6000km of freeways have been planned and a large number of equipment shortages have become the root cause of imported equipment in Vietnam. Secondly, the "Made in China" construction machinery has become the first choice for imports due to its high quality and low price. According to the reporter of the China Construction Machinery Business Network, Miao Wenshu, chairman of the Vietnam Machinery Enterprises Association, expressed that China's machinery and equipment, especially cement, hydroelectric equipment and construction machinery The high quality and technological content, moderate prices, and high holdings in Vietnam are very much in line with Vietnam's national conditions and the actual needs of enterprises. In addition, China and Vietnam are close to each other, have an advantage in transportation costs, and have a perfect after-sales service system. Third, the preferential tariff policies of the Vietnamese government have greatly reduced the cost of trade and prompted the rapid growth of bilateral trade between China and Vietnam. The Ministry of Finance of the Ministry of Finance stated on January 9 that according to instructions from the government’s Prime Minister on assisting the development of key machinery products, the ministry has promulgated regulations to implement zero for equipment and materials imported for the production of key mechanical products and for investment in the production of key mechanical products. tariff.

A series of favorable factors have led to the export of Chinese construction machinery to Vietnam. Analysts of China Construction Machinery Business Network believe that in the face of overseas market development, manufacturing companies should further investigate the characteristics of the local market, in terms of product development, sales, and after-sales services. It is more in line with local realities to promote the rapid and healthy development of the market.