Belt and Road Initiative and bank branch opening topped agreements inked during President Xi’s visit

During President Xi Jinping’s state visit during the APEC Summit 2017, Vietnam and China released a joint statement. Accordingly, China is willing to expand imports from Vietnam, give priority to the assessment of market entry requirements for dairy products from Vietnam, open markets for some Vietnamese fruits and promote cooperation in agriculture, fisheries, and forestry, including rice and cassava.

Also, China’s President Xi and General Secretary of Vietnam’s Communist Party Nguyen Phu Trong witnessed twelve agreements signed and seven documents exchanged.

Those important agreements include a memorandum on promoting connections with “Belt and Road Initiative” (BRI) between the two States.

Originally named “One Belt, One Road” by President Xi in 2013, this initiative was hoped to bring new directions for China’s economic development. It stems from the historic “Silk Road,” an ancient trade road also opened by China to link it with the West. With the length of 6,400 kilometers, it crossed up to fifteen ancient countries, which not only circulated goods but also spread the cultures of China, Persia, and India.

To rejuvenate this tradition, China’s President Xi Jinping started the “Belt and Road Initiative,” which is greatly welcomed by Vietnam. He stated in his speech at APEC CEO Summit, “This initiative calls for joint efforts in developing infrastructure, connecting economic policies, supporting one another in development policies to create common prosperity. […] I believe BRI will open a more dynamic channel for cooperation in the Asia-Pacific region.”

Obviously, BRI indicates Xi’s support for globalization, which goes starkly contrast with his American counterpart’s opinion. While Xi strongly advocates an open economy that benefits everyone, Donald Trump seems to turn his back on multilateral agreements, blaming them for taking advantage of America.

On the other hand, a document that states the approval to open a Hanoi branch of Agriculture Bank of China was exchanged upon the witness of two countries’ leaders. China also promised to create favorable conditions for Vietnam to gain access to its preferential loans and other loans in compliance with related regulations.

Agricultural Bank of China, established in 1951, is now one of the “Big Four” banks in China. In 2010, the bank began listing on the Shanghai and Hong Kong Stock Exchange. In 2011, it ranked 8th on a list of the world’s1,000 largest banks in the world.

In 2012, the Governor of the State Bank of Vietnam allowed Agricultural Bank of China to open a representative office in Hanoi. Agricultural Bank of China Limited - Hanoi Representative Office is located at 83B Ly Thuong Kiet Street, Hanoi and has a five-year term.