New Trade Route Established Connecting China, Vietnam, and India

In a significant development for regional trade, the Vietnam Maritime Corporation (VIMC) has joined forces with China’s Guangxi Beibu Gulf Port Group to inaugurate a new container shipping route. This innovative connection links the bustling ports of Beibu Gulf in China, Hai Phong city in Vietnam, and Kolkata in India, promising to facilitate smoother shipping processes and enhance trade relations across these pivotal regions.

The establishment of the first public container shipping service between Beibu Gulf Port and Hai Phong Port is more than just an operational milestone. It symbolizes a crucial bridge for trade, enhancing connectivity not just for Vietnam and China, but also for eastern India and neighboring countries like Bangladesh. This new shipping route is expected to streamline the exchange of goods, fostering economic growth across the region.

Trade commodities traveling through this route span a diverse range. On the export side, China will be shipping items including glass, paper products, and energy storage batteries. Conversely, imports to China will feature essential goods such as wood chips, starch, spices, sandstone, and various food products. This exchange highlights the synergistic nature of the trade relationship built among these nations.

Le Quang Trung, deputy general director of VIMC, characterized the launch as a significant achievement for the regional maritime industry. He described the new route as a strategic gateway set to unlock a plethora of fresh trade opportunities connecting China, Vietnam, and India. This optimistic view is supported by the potential for increased maritime traffic contributing to the sustainability and growth of not only the Vietnamese maritime sector but the broader regional industry as well.

Liu Shengyou, general manager of Guangxi Beibu Gulf Port Group, added a layer of political significance to the launch, suggesting that this initiative also strengthens bilateral relations and enhances economic integration between China’s Belt and Road Initiative (BRI) and Vietnam’s “Two Corridors, One Belt” framework. This partnership aims to foster a shared future for China and Vietnam, reflecting the strategic importance of their collaboration.

The Guangxi Beibu Gulf Port Group Co., Ltd., recognized as a major state-owned enterprise, is poised to reach over 10 million TEUs (twenty-foot equivalent units) in container throughput this year. Since signing a strategic cooperation agreement with VIMC last year, the companies have successfully operationalized this new shipping service, which is scheduled to run one trip every three weeks, ultimately enhancing the frequency and reliability of maritime transport in the region.

Notably, 2024 witnessed China reaffirming its status as Vietnam’s largest trade partner, with a staggering trade volume exceeding $200 billion. Conversely, Vietnam has maintained its role as Guangxi’s largest trade partner for an impressive 26 sequential years. This established history of mutual trade underscores the significance of their new shipping initiative in strengthening economic ties further.

Liu expressed high hopes regarding this public shipping service’s potential to facilitate transshipment through both Beibu Gulf Port and Hai Phong Port. The service is expected to create an efficient transportation and trade channel for provinces along China’s New International Land-Sea Trade Corridor, which could yield substantial benefits for the industrial sectors in both Vietnam and eastern India. This development aligns perfectly with broader trends in international trade, emphasizing connectivity, efficiency, and cooperation in an increasingly globalized market.