Thanks to ten years of reform and opening up, especially as a result of deepening reform during the recent five years, Vietnam economy assumes a continuous growing trend. Price is fairly stable, and people life is gradually improved. From 1991 to 1996, the average growth rate of Vietnamese GDP is 8.5%. Affected by Asian financial crisis, the growth rate of Vietnam economy was getting crippled year by year since 1997. In the year 1999, Vietnam economy was still dangling in the bottom, GDP growth is only 4.8%, industry increased by 10.5%, agriculture 5%. Vietnam's foreign trade volume in 1999 adds up to 23.15 billion USD, increasing by 12.38% comparing to last year. Trade deficit dropped in a large scale to a level of 110 million USD. By the end of 1999, Vietnam has approved altogether 2790 foreign invested projects, contract value totaling 35.987 billion USD.

II. Sino-Vietnam Bilateral Cooperation Status

Sino-Vietnam bilateral trade starts a new trend of increasing, but China's export to Vietnam still declines in a large scale. According to Chinese custom statistics, Sino-Vietnam bilateral trade volume in 1997 reached 1.44 billion USD, 1.25 billion USD for 1998 and 1.32 billion USD for 1999, up 5.8% from last year. Of the total volume, export accounts for 964 million USD, imports 354 million USD, down 6.23% and up 63.13% respectively. Due to the decline of export and increase of import, Vietnam's trade deficit to China reduced from 810 million USD in 1998 to a level of 610 million USD in 1999. In 1999, Chinese companies make new development in project contracts and labor cooperation in Vietnam. New project contracts signed by Chinese companies in Vietnam of the current year added up to 325, up 99.4% from last year, with contract value of 117.88 million USD, turnover 83.17 million USD, up respectively 57.9% and 26.6% from last year.