This article examines the translation and reception of contemporary Chinese novels in Vietnam since the Doi moi (Renovation) of 1986, in the relation to cultural policy, social context, and the publishing market. Approaching translation as an intercultural practice, the study analyzes these three main aspects; thereby indicating how the translation of Chinese novels reflects changes in cultural diplomacy between Vietnam and China, linked to the impact of globalization, the innovation of publishing mechanism, and the changing aesthetic tastes of Vietnamese readers in the new era. The processes of translation and reception of contemporary Chinese literature demonstrates a flexible adaptation to local contexts while contributing to the restructuring of Vietnamese literature towards modernization.