Arbitrage over the Beilun/Kalong River: Chinese Adjustments to Border Trade Practices in Vietnam

Abstract

This chapter examines the case of Móng Cái, a Vietnamese city dedicated to border trade with China. Here, Chinese entrepreneurs face restricting local policies and challenging Vietnamese negotiators. To establish sustainable partnerships, Chinese traders must compromise with diverse business ethics and strategies in a context of diplomatic frictions and economic crisis. Border trade practices regarding capital transactions, goods transport, and people’s circulation are all framed in both legal and illicit ways. Their unreliability contributes to conflicting relationships between economic agents and threatens collaborative commercial projects in Vietnam. By looking at transportation logistics, this chapter sheds light on how conflicting approaches of cross-border trade impede the implementation of a regional economic agenda focused on commercial cooperation.