Title: Historical and contemporary economic linkages: Vietnam-China trade from the Silk Road to modern economic corridors
Authors: Van Quan Nguyen . Minh Nguyen Canh
Volume: 10
Issue: 7
Pages: 81-93
Publication Date: 2026/07/28
Abstract:
This paper investigates the development of Vietnam-China trade through the lens of interregional value chains, examining its transition from historical exchange networks to contemporary production-oriented integration. Grounded in Global Value Chain (GVC) theory, Regional Value Chain perspectives, and regional economic geography, the study explores how bilateral economic relations have evolved from traditional trading systems, including maritime Silk Road linkages and tributary exchanges, toward modern fragmented manufacturing networks driven by intermediate input flows and cross-border economic corridors.Employing a qualitative descriptive approach and utilizing secondary sources from international institutions and scholarly research, the paper identifies three major characteristics of Vietnam-China economic interaction. First, the bilateral trade pattern demonstrates Vietnam's substantial reliance on Chinese intermediate inputs, while maintaining a comparative advantage in downstream assembly activities and agricultural exports. Second, Vietnam's integration into East Asian production networks reflects a common GVC configuration, characterized by dependence on upstream suppliers and specialization in manufacturing stages with lower value-added creation, corresponding to the smile curve framework. Third, strategic connectivity initiatives, including the Kunming-Lao Cai-Hanoi-Hai Phong economic corridor and logistics networks associated with the Belt and Road Initiative, have significantly enhanced cross-border production linkages and regional connectivity. The study argues that Vietnam-China trade is no longer primarily defined by the exchange of finished goods but increasingly by participation in interconnected production systems. Although such integration has contributed to Vietnam's export-oriented economic expansion, it has also exposed persistent imbalances in value creation, technological capacity, and supply chain resilience. By linking historical trade relationships with contemporary industrial organization and infrastructure development, this research provides a broader perspective on the mechanisms shaping Vietnam-China economic ties within East Asian regional value chains.