Cross-border trade gets faster, smoother ride

For veteran Chinese truck driver Li Cishen, crossing the border into Vietnam was nothing new — but this time was different. Behind the wheel of his 18-meter-long freight truck loaded with fresh vegetables, Li wasn't heading for the border city of Lao Cai, as he usually did. Instead, he was bound for Vietnam's capital, Hanoi — a 700-kilometer international journey from Kunming to Hanoi that marked his first real foray into the heart of a neighboring country.

"Before this, I only made it to Lao Cai and called that Vietnam," Li said. "This time, I went all the way to Hanoi. That's a first for me."

On May 14, Li and 17 other Chinese drivers set off from Kunming in Yunnan province and Nanning in the Guangxi Zhuang autonomous region, heading south to Vietnam. Their freight vehicles, carrying electronics, fresh produce, flowers and general merchandise and two passenger buses, arrived in Hanoi the following day.

What made this trip historic is not just the destination, but the policy behind it: it was the first time Chinese freight vehicles entered Vietnam's interior under the Cross-Border Transport Facilitation Agreement (CBTA) — a core initiative of the Greater Mekong Subregion (GMS) cooperation program. It aims to streamline movement of people and goods, boosting regional connectivity.

The trip marks a major breakthrough in regional logistics and trade. Previously, Chinese trucks were required to stop at the border, where goods had to be transferred to Vietnamese vehicles — a process that caused delays, raised logistics costs, and increased the risk of cargo damage. Under the new agreement, trucks can now travel directly into each other's territory without transshipment.

"Now our trucks can drive directly into Vietnam's major cities like Hanoi and Ho Chi Minh City without having to transship goods at the border," said Jin Jia, director of international business at a Chinese logistics company, Yunnan Maosheng International Logistics.

"This permit works like a passport for our trucks — domestically, we use the vehicle license, and internationally, we use the GMS permit," he said.

Jin noted that eliminating the need for reloading saves at least 800 to 1,000 yuan ($111 to $139) per truck, while also cutting delivery times significantly.

"For perishable goods like vegetables and flowers, this time savings is critical," added Pu Xiaoqiang, general manager at Yunnan Youjie International Logistics, another Chinese firm. "Earlier, it took two days to reach Hanoi from Kunming. Now it takes just one. In Vietnam's hot climate, speed determines freshness — and customer satisfaction."

Vietnamese consumers have a growing appetite for flowers and fresh vegetables from Kunming, while Chinese buyers favor tropical fruits like durians and lychees from Vietnam. "These agricultural products are extremely sensitive to time and temperature," Pu noted. "With no need for reloading or unloading, cargo damage is nearly zero."

Logistics Without Borders

Digital platforms are also helping to unlock new efficiencies along these international routes.

Gong Rui, chairman of Yunnan Yunjie Technology, said his company supports small and micro logistics firms by matching them with transport providers, thereby reducing costs and improving delivery efficiency.

"Through our platform, we have even helped clients arrange return shipments from Vietnam to avoid empty backhaul trips," Gong explained. "Logistics should be borderless. When managed well, it creates real value for businesses and consumers."

His company also joined the recent cross-border run, delivering fabric to a Vietnamese factory.

The sentiment was echoed by Vietnamese logistics partners. Nguyen Van Duc, general manager of Hateco, a Vietnamese conglomerate, said the new transport route has significantly simplified customs procedures and lowered logistics expenses.

"It's a win-win for importers and exporters on both sides," he said.

The cross-border route — connecting China directly with Vietnam's capital — is not only creating economic benefits, but also deepening people-to-people ties between the two nations.

A Milestone Years in the Making

The cross-border journey is the result of decades of multilateral efforts. The GMS CBTA was first proposed in 1999, aiming to streamline the movement of goods and people across six countries: China, Vietnam, Laos, Cambodia, Thailand and Myanmar.

The first trial run occurred last year, linking China to Cambodia via Laos and Thailand — but not yet through Vietnam.

"This recent road transport activity between China and Vietnam is a milestone," said Yuya Yamamoto, trade specialist at the Asian Development Bank (ADB), adding that it proves that certified vehicles can now travel smoothly across five countries. ADB has played a significant role in the development and implementation of the CBTA.

He noted that similar transport models in Europe — such as the Schengen Agreement — have enabled the free movement of goods and people across multiple countries, offering a vision for Asia to follow.

Ron Slangen, deputy country director of the ADB, emphasized Vietnam's strategic location — bordering China, Laos, and Cambodia — as a vital transport hub in the GMS.

"The successful implementation of the GMS CBTA represents more than just trucks crossing borders — it symbolizes the breaking down of barriers that can unlock the region's full potential. As GMS corridors come to life and supply chains strengthen, we are laying the foundation for unprecedented economic prosperity," Slangen said.

He also noted that Vietnam plays a critical role in regional supply chains, making cross-border initiatives like the CBTA crucial for advancing trade and connectivity.

Chinese and Vietnamese officials have echoed this optimism, highlighting both immediate benefits and long-term potential.

"The launch of international road transport between China and Vietnam is an important milestone in deepening practical cooperation between the two countries, and another achievement of the Belt and Road Initiative," said Liu Peng, director of the Global Sustainable Transport Innovation and Knowledge Center, part of China's Ministry of Transport.

He emphasized that China and Vietnam are already major trading partners and that the new road transport arrangement is set to further enhance trade efficiency, reduce logistics costs and boost regional economic integration.

According to Chinese customs data, bilateral trade in 2024 surpassed $260 billion, with China maintaining its position as Vietnam's largest trade partner for 20 consecutive years.

Wang Xiuchun, deputy director of the Transport Services Department at the ministry, said, "It reflects China's strong support for connectivity among Greater Mekong Sub­region countries and offers an effective path for cross-border economic cooperation in the Lancang-Mekong region, promoting integration, prosperity, sustainability and inclusiveness."

Zhang Jie, also a deputy director at the Transport Services Department, added: "The new routes not only reduce transport time and distance, but also strengthen the link between China's Western Land-Sea Trade Corridor and Vietnam's 'Two Corridors, One Economic Circle' strategy — accelerating industrial cooperation and fostering deeper economic integration."

On the Vietnamese side, authorities are also upbeat about the corridor's impact.

Bui Quang Thai, director of Vietnam's Road Administration, said: "The Vietnam-China GMS transport network comprises two main corridors — Kunming–Hanoi–Haiphong and Nanning–Hanoi. These are critical road transport arteries with high trade volumes and play a vital role in bilateral trade between the two countries."

He emphasized that direct cross-border movement into the interior of both countries will not only enhance trade but also promote tourism, economic cooperation, and people-to-people exchanges.

"The operation of these two routes under the GMS framework will bring tangible benefits: enhancing connectivity, reducing time and costs for businesses, simplifying procedures, and promoting trade, logistics, investment, and regional economic growth," he said, adding that it's a major step toward realizing a deeply connected, integrated, and sustainably developed GMS region.

Do Quoc Phong, deputy head of the Transport Management Department at Vietnam's Road Administration, said: "This launch is not just a technical achievement — it's a vivid symbol of the practical and effective cooperation between our two nations."

From Lao Cai to Hanoi: One Journey, Two Languages

Despite his 20 years of driving experience, truck driver Li faced a new kind of challenge on this trip: navigating without internet access. "My phone had no reception and the navigation system failed," he said. "I couldn't connect online, which made me feel blind."

Help came from Nguyen Quy Hoi, a Vietnamese logistics partner assigned to accompany him from Lao Cai to Hanoi. Though the two shared no common language, they forged a partnership through technology, and trust. Using a translation app, Nguyen sat in the cab beside Li for the entire journey, assisting with customs paperwork, directions, and even mealtime communication.

Nguyen would speak into his phone, and the device would play a Chinese translation: "We can take a break at the next rest area." Li responded with a nod and a thumbs-up. Along the way, they chatted about food, family, and life — through screens, gestures, and shared silence. Inside the truck's cabin, Chinese and Vietnamese voices echoed in digital rhythm, reflecting a deepening sense of camaraderie.

Growing Pains on a New Route

Despite the success of the journey, the road wasn't without bumps.

"Before departure, our company installed a new navigation system in my truck — but it didn't work once we got into Vietnam," said Li.

"Even my mobile phone, with an international plan, couldn't connect. I didn't realize the issue until I was already on the highway in Vietnam."

The cross-border trip — part of the GMS CBTA — is still in its early implementation phase. Officially activated in 2024, the agreement allows licensed freight vehicles to travel between GMS countries without transshipment, but real-world challenges remain.

Yamamoto, trade specialist at the Asian Development Bank (ADB), acknowledged the need for more operational experience.

"As the CBTA has only recently become active, it's crucial for more operators from participating countries to join and gain firsthand experience," he said. "This will help us fine-tune the process and ensure smooth implementation across the region."

On the Vietnamese side, logistics companies are eager to participate — but need better access to information.

"Most Vietnamese companies still don't know how to apply for GMS permits," said Ha Tien Dat, head of Vietnam-based Datani Logistics Co. Ltd. "We hope more guidance will be provided."

Ha, who obtained practical knowledge through his Chinese partners, now assists Chinese logistics firms with customs declarations and other cross-border procedures.

"We want to send Vietnamese trucks deep into China, too," he added.

The Road Ahead

While technical and procedural hurdles remain, the outlook is optimistic.

Drivers like Li are undeterred. He plans to fix his connectivity issues as soon as he returns to China — and is already looking forward to his next trip.

Yuya Yamamoto emphasized two strategic goals for the CBTA moving forward. "In the short term, we aim to make full use of the framework, allowing each country to issue up to 500 transport permits," he said. "In the medium term, the goal is to expand the agreement to cover more countries and routes."

With the first round of journeys now complete and all Chinese trucks safely back home, logistics companies are reflecting — and preparing.

Pu Xiaoqiang, general manager of Yunnan Youjie International Logistics, plans to begin daily flower shipments to Vietnam starting June 1. Gong Rui, chairman of Yunnan Yunjie Technology, is also gearing up for a second cross-border delivery.

For drivers like Li, the journey was more than just a test run — it was a beginning.

"Now that I've got the GMS permit," he said, eyes bright with determination, "I'm ready to go farther, faster — and better prepared."