The purpose of the article is to examine the changes in cross-border cooperation between Vietnam and China as a result of the development and connectivity of cross-border infrastructure between the two countries. This article is based on a mixed-methods study that includes desk research and surveys. The article explains how the two countries’ approaches to border shifted from ‘barrier’ to the border of ‘connectivity’. Accordingly, the article examines the changes in border management cooperation between the two countries, which serves as a vital basis for cross-border development cooperation. Furthermore, the article examines the perceptions of the two countries regarding the development and connectivity of cross-border infrastructure for comprehensive cooperation between the two countries and beyond. At the same time, the article examines how the two countries promote the development and connectivity of cross-border infrastructure, both hard and soft. The article also examined some initial results and some issues facing the two countries. The paper concludes with some findings. In particular, the article concludes that increased border connectivity will encourage cross-border cooperation and integration between the two countries and help to alleviate security concerns. Although the two countries have made efforts to open their borders, in the transition from a border of ‘barriers’ to a border of ‘connectivity’ remain partly to Vietnamese people’s memories of the 1979 Sino-Vietnamese border war, as well as the impact of the two countries’ unresolved South China Sea disputes. However, Vietnam also tries to promote cross-border cooperation within a controllable level.

Cross-border infrastructure projects offer significant economic and social benefits for the Asia-Pacific region. If the required investment of $8 trillion in pan-Asian connectivity was made in the region’s infrastructure during 2010–2020, the total net income gains for developing Asia could reach about $12.98 trillion (in 2008 US dollars) during 2010–2020 and beyond, of which more than $4.43 trillion would be gained during 2010–2020 and nearly $8.55 trillion after 2020. Indeed, infrastructure connectivity helps improve regional productivity and competitiveness by facilitating the movement of goods, services and human resources, producing economies of scale, promoting trade and foreign direct investments, creating new business opportunities, stimulating inclusive industrialization and narrowing development gaps between communities, countries or sub-regions. Unfortunately, due to limited financing, progress in the development of cross-border infrastructure in the region is low.

This paper examines the key challenges faced in financing cross-border projects and discusses the roles that different stakeholders—national governments, state-owned enterprises, private sector, regional entities, development financing institutions (DFIs), affected people and civil society organizations—can play in facilitating the development of cross-border infrastructure in the region. In particular, this paper highlights the major risks that deter private sector investments and FDIs and provides recommendations to address these risks.