CIPG: So far, how have the two countries aligned their development strategies? What are the highlights of bilateral cooperation? Hong Xiaoyong:

Since being put forward in 2013, the Belt and Road Initiative has had a wide response from the international community, so has naturally attracted Viet Nam’s attention. In November 2015, President Xi Jinping paid a state visit to Viet Nam, and early this year, General Secretary of the Communist Party of Viet Nam Nguyen Phu Trong visited China. During these top-level meetings the two countries confirmed they would align the Belt and Road Initiative with Viet Nam’s “Two Corridors and One Economic Circle” plan. The relevant departments are now negotiating the documents specific to the alignment.

The two countries have also signed a memorandum on production capacity cooperation. This highlights the clear intention of the two governments to cooperate. As to specific cooperation projects, major headway and impressive achievements have been made as regards transportation, electricity, the manufacturing sector, and construction of industrial parks.

China Railway Sixth Group is constructing Viet Nam’s first urban light rail, notable for its Chinese technology, capital, equipment and standards.

As to electricity, since commencement of its reform and opening up, Viet Nam has relied on China in this regard. Formerly buy- ing electricity from China, the country now invites Chinese companies to build power plants in Viet Nam. The representative project is the Vinh Tan 1 Power Plant, constructed by the China Southern Power Grid, involving an investment of $1.8 billion. Upon completion, this project will considerably alleviate electricity shortages in south Viet Nam. The project has gained commendation and awards from the local government due to its high standards, strict observance of local laws and integration with the local community.

In the manufacturing sector, the Chinese private company Texhong Textile Group Ltd, which set up a branch in Viet Nam more than 10 years ago, is prospering, and has achieved effective localization. Apart from a few managerial staff members, the workforce consists entirely of local residents. Its factory in Bac Ninh Province is one of the biggest taxpayers in the region, and has provided jobs for more than 7,000 local residents.

Regarding the construction of industrial parks, the Long Jiang Industrial Park in south Viet Nam’s Tien Giang Province, mainly invested in by Chinese private companies, has basically taken shape. Covering 54 hectares, it seats around 36 companies. Industrial parks are integral to promoting local employment and strengthening bilateral ties. Apart from attracting construction investment, they also draw companies to set up shops there, so as to boost foreign