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Trade Cooperation Between China and Vietnam from the Perspective of Intra-Industry Trade

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Sustainable Development in Asia

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Abstract

Exchange rate pass-through (ERPT) indicates the impacts of an effective exchange rate change on the trading prices of a country’s commodities. After more than two decades of Doi Moi, Vietnam has highly been involved in international economies. Upon its internationalization, RMB (Chinese Renminbi) has been empirically proven to be an invoicing currency of Vietnam when Vietnam imports goods from abroad. Based on our preliminary research, two main findings are noteworthy. Firstly, the degree of intra-industry between the trade of Vietnam and China has been increasing. In particular, the vertical intra-industry trade accounts for the biggest proportion of the Vietnam–China intra-industry trade. Secondly, most of Vietnam’s trading goods are of low quality in relation to China. Nevertheless, Vietnam’s quality of goods has witnessed an improvement from 2001 to 2016. The main objective of this part is to research the heterogeneous ERPT into Vietnam’s import prices from China using highly disaggregated 6-digit HS data from 2001 to 2016.

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Tan, Y., Yang, Y. (2022). Trade Cooperation Between China and Vietnam from the Perspective of Intra-Industry Trade. In: Andreosso-O'Callaghan, B., Rey, S., Taylor, R. (eds) Sustainable Development in Asia . Contributions to Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-94679-1_11

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