Promoting Lao Cai - Yunnan trade cooperation, expanding value chains for agricultural products, medicinal herbs, and tea
LCP - On the morning of April 7, in Lao Cai Ward, the Department of Commerce of Yunnan Province (China), in coordination with the Department of Industry and Trade of Lao Cai Province, organized a business networking program between Yunnan and Lao Cai enterprises. The event aimed to strengthen connections, expand markets, and promote the development of goods supply chains between the two localities.
Attending the program were representatives of departments, agencies, and functional forces at Lao Cai’s border gates; industry associations; and enterprises engaged in import-export, logistics, agricultural processing, medicinal herbs, and tea. Also present was a delegation of Yunnan-based enterprises operating in agriculture, electromechanical equipment, construction materials, and trade services.
Speaking at the event, Mr. Nguyen Huy Tuong, Deputy Director of the Lao Cai Department of Industry and Trade, emphasized that thanks to their geographical advantages, Lao Cai and Yunnan play an important role in the economic corridor connecting Vietnam with Southwest China. Both localities have a diverse border gate system and favorable conditions for trade, along with increasingly well-developed transport and logistics infrastructure.
In recent years, trade cooperation between the two sides has achieved positive results. In 2025 and the first quarter of 2026 alone, total import-export turnover through international road border gates in Lao Cai exceeded USD 2.1 billion. Agricultural products accounted for a large proportion, with a value of over USD 1 billion, playing a key role in the trade structure.
Vietnamese agricultural products such as durian, coffee, and dragon fruit have been increasingly welcomed in the Chinese market, while temperate fruits and vegetables from Yunnan are being stably consumed in Vietnam. This demonstrates the complementary nature of the two economies, providing a foundation for developing sustainable supply chains and diversifying markets.
In addition to agricultural products, sectors such as medicinal herbs, electromechanical equipment, and construction materials have also seen development, though still at a modest scale. These areas offer significant potential for businesses from both sides to enhance cooperation, especially amid the trend toward higher value-added industries.
Representing Yunnan Province, Ms. Lou Xiaojun, Head of the ASEAN Trade Division under the Yunnan Department of Commerce, noted that cooperation between China and Vietnam in general, and between Yunnan and Lao Cai in particular, has been developing steadily and substantively. The two localities share advantages in geography, natural conditions, and cultural similarities, facilitating expanded cooperation.
According to Ms. Lou Xiaojun, Yunnan Province covers an area of over 394,000 square kilometers and has a population of about 47 million, with abundant natural resources. In 2025, the province’s GDP reached RMB 3.27 trillion, up 4.1% year-on-year. The province currently has 28 border gates, including six that directly connect with Vietnam.
In her closing remarks, Ms. Lou Xiaojun stated that Yunnan enterprises are keen to gain deeper insights into Lao Cai’s investment environment, trade policies, and market demand. The goal is to establish long-term partnerships, particularly in the production and processing of agro-forestry products, agricultural import-export, trade, logistics, as well as expanding cooperation in education and tourism.
Representatives of both localities affirmed their continued support for businesses, promoting administrative reforms, improving infrastructure, and building a favorable business environment, thereby contributing to sustainable trade cooperation between Lao Cai and Yunnan in the coming time.