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HANOI - As Vietnam is a major neighbor of China, joining hands with the country in building "One belt, one road" will further promote bilateral cooperation between the two countries and increase mutual understanding between the two peoples, visiting Deputy Director of the National Development and Reform Commission of China Hu Zucai said in Hanoi Saturday.

Speaking to the Vietnamese media before the opening ceremony of the construction of Vinh Tan 1 thermal power plant in Vietnam, Hu said the "One belt, one road" initiative will bring new momentum to the bilateral relations and create a broader platform for the cooperation of the two countries' enterprises.

The National Development and Reform Commission of China and Vietnam's Ministry of Planning and Investment have established a working group on inland infrastructure cooperation, Hu said, adding that both sides are positively boosting pragmatic cooperation in the areas of inland and sea transport, and energy infrastructure.

The two countries have huge potentials for cooperation in production capacity and equipment manufacturing which will promote the pragmatic cooperation between the two countries, Hu told reporters.

Vinh Tan 1 thermal power plant, located in Vietnam's southern Binh Thuan province, is invested by the consortium under China's Southern Power Grid Company, China Power International Development Company (95 percent of investment) and the Power Corporation under the Vietnam National Coal-Natural Industries Corporation.

The plant, which is constructed under build-operate-transfer contract, will help increase the power supply, create jobs, promote economic development and improve people's livelihood, said Hu.