In October, Quang Ninh province granted an investment registration certificate for the Jinko Solar Hai Ha Vietnam photovoltaic cell project capitalised at 1.5 billion USD. (Photo: markettimes.vn)Accelerating investment in Vietnam
This year, many Chinese enterprises, especially those with theability to participate deeply in the global supply chain, have made investmentsurveys in northern provinces of Vietnam.
For example, Wingtech, China's largest smartphone assemblycompany, pledged to continue surveying investmentopportunities in Phu Tho province. Goertek poured 280 millionUSD into a new project while expanding an existing one in Bac Ninh province.Another firm, China’s largest EV company BYD, invested 269 millionUSD in an automobile component manufacturing project in Phu Tho province.
Baodautu.vn cited Do Van Su, Deputy Directorof the Foreign Investment Agency under the Ministry of Planning andInvestment (MPI), as saying that China has been one of the largest foreigninvestors in Vietnam over the past five years.
In the first 11 months of 2023, China pumped 3.96 billion USD in Vietnam,ranking fourth among countries and territories investing in the country. Todate, Chinese investors have injected over 27 billion USD in 4,161 projectsacross Vietnam, placing 6th out of 143 countries and territoriesinvesting in the country.
According to the MPI, investment capital flows from China to Vietnamhave changed significantly in recent years in a variety of areas. Inaddition to restaurants, hotels, and consumer goods, Chinese investors haveexpanded into electricity, electronics, tire production, textiles,and footwear. This has made an important contribution todeveloping the country's supporting industries.
Most notably, in October, the northern province of QuangNinh granted an investment registration certificate to the Jinko Solar Hai HaVietnam photovoltaic cell project capitalised at 1.5 billion USD. The maininvestor for the project is Jinko Solar Holding, the world's largest and mostadvanced solar panel manufacturing corporation from China.
John Campbell, Associate Director and head of theIndustrial Services Department at Savills Vietnam, outlined Vietnam'sgeographic location (adjacent to China), creating favourableconditions for the transportation of goods, raw materials and productionlines as one of the major reasons why Vietnam attracted Chinesebusinesses.
In addition, Vietnam's high level of economic integration has alsohelped Chinese businesses expand their presence in the market, hetold baodautu.vn, addingthat Vietnam also possesses an abundant labour force, including ahighly skilled workforce, with competitive labour costs.
Waiting for large projects
Chairman of the Vietnam Association ofForeign Invested Enterprises Nguyen Mai said besides Vietnam,Chinese investors have also been investing in many countries around the world,in which large economies such as the US or the EU wanted to attract thisinvestment inflow.
However, with the potential for economic and investmentcooperation, there would be many more large investment projects fromChina into Vietnam, Mai said.
From now until 2025 or beyond, Vietnam would become a destinationfor Chinese investors, Mai said, adding that the investors couldnot miss investment opportunities in Vietnam to take advantage ofpotential export partners to trade goods.
At a meeting with Prime Minister Pham Minh Chinh in June, leadersof Chinese giants such as Hong Tian Zhu, Texhong, Song Hailiang,Energy China, Jiang Bin and Goertek praised Vietnam's dynamic development,and expressed their desire to expand production and business in Vietnam.
Leaders of these businesses said they wanted to expandinvestment in Vietnam in a number of fields such as energy, industrial parkinfrastructure, social housing, inland waterway ports, automobile manufacturing,research and development, supply chain development./.
VNA
