Ready to welcome high-quality investment capital from China

More and more Chinese corporations with international scale in the fields of technology, electronics, renewable energy... are investing in Vietnam.

Factory of Jasan Textile Dyeing Company Limited (100% Chinese capital) in Hung Yen. (Source: Thanh Nien Newspaper)

Chinese capital rushes to Vietnam

A month ago, a delegation from Sunwoda Group (China) came to Bac Giang to seek investment opportunities. Mr. Hang Hai Tieu, CEO of the Group, said that Sunwoda plans to build a factory specializing in the production of electronic components, such as phone batteries, computers, etc., with an estimated investment capital of 300 million USD.

Previously, Sunwoda had a small factory in Bac Giang and now continues to expand its investment on a large scale. Most likely, this project will be implemented soon, because Sunwoda has signed an agreement in principle to invest in Yen Lu Industrial Park with Capella Real Estate Joint Stock Company.

It is also possible that Sunwoda will continue to invest and expand in this province, because according to Mr. Hang Hai Tieu, based on the development of production in Vietnam, the Group will have an investment direction in the following years.

Sunwoda is not the only Chinese company that has come to Vietnam to seek investment opportunities recently.

Just last week, a delegation of Chinese businesses visited Hai Phong to discuss projects they wanted to invest in Vietnam. Meanwhile, in early August 2024, as part of an investment promotion trip to China, Hai Phong City leaders granted investment certificates to a series of projects, with a total investment capital of nearly 200 million USD. Many other large-scale projects have also been granted investment cooperation memorandums of understanding (MOUs).

This reflects the recent trend, when investment from China has been pouring into Vietnam, especially since the economy decided to lift the Zero-Covid policy in early 2023. Statistics from the Ministry of Planning and Investment show that in 2023, Chinese enterprises registered to invest 4.5 billion USD in Vietnam, an increase of nearly 80% over the same period last year.

In the first seven months of this year, the figure was nearly 1.65 billion USD, although down compared to the same period in 2023, it is still a positive figure. In terms of capital, China ranked 4th among countries and territories investing in Vietnam in the past 7 months. But in terms of the number of projects, China is the leading partner in the number of new investment projects, accounting for 29.7%.

“China’s investment in Vietnam has recently increased sharply, with the appearance of many international corporations in the fields of technology, electricity - electronics, processing, manufacturing, infrastructure, renewable energy…”, Minister of Planning and Investment Nguyen Chi Dung commented.

It is true that besides the “traditional” projects, such as Vinh Tan Power, with a scale of 2 billion USD in Binh Thuan; Radian Tire, with a scale of 1 billion USD, in Tay Ninh; or 2 Brotex Vietnam fiber factories, with a scale of 570 million USD and 534 million USD, also in Tay Ninh…, in recent years, Chinese enterprises, including Taiwan (China) and Hong Kong (China), have invested in many large-scale projects in the field of technology and electronics in Vietnam. The appearance of projects by BYD, Goertek, Foxconn… is proof.

Waiting for high quality capital flow

The comments of Minister Nguyen Chi Dung and the recent investment trends of Chinese enterprises show that the quality of investment flows from China to Vietnam has improved significantly. If previously, Chinese investment projects were mainly in the fields of textiles, footwear, now they are projects in the fields of technology, electricity, electronics, etc.

Earlier this year, Victory Giant Technology Group decided to invest in a project to research, develop, produce and trade high-precision circuit boards, with an investment capital of more than 800 million USD, in Bac Ninh. As for BYD Group, although it is delaying its plan to build an electric vehicle factory in Vietnam, it is still continuously expanding its investment in electronic components. Currently, BYD's factory in Phu Tho is still producing components and accessories for the "giant" Apple.

Meanwhile, Runergy Group is still working hard on a $440 million project specializing in the production of semiconductor components, including silicon bars and semiconductor wafers, in Nghe An. If everything goes well, Runergy plans to increase its total investment capital in Vietnam to $1.2-1.4 billion. Power China, China Rare Earth Group, Haosen Electronic Battery Company, etc. are also among the Chinese enterprises planning new investments in Vietnam in the near future.

Not only the above corporations, during his visit to China at the end of June 2024, Prime Minister Pham Minh Chinh received many large Chinese corporations, such as Pacific Construction Corporation or Thien Doanh Corporation.

In particular, Thien Doanh is a multinational corporation, operating in the field of new carbon-free energy, smart environmental services and recycling, has invested in 4 waste-to-energy projects in Hanoi, Phu Tho, Thanh Hoa, Hai Duong, with a total investment of about 800 million USD...

“Thien Doanh wishes to join Vietnam in classifying and treating waste nationwide; at the same time, implementing solar power, wind power, and green hydrogen projects in Vietnam,” said Mr. Nghiem Thanh Quan, Chairman of Thien Doanh Group.

These are the areas in which Vietnam is encouraging investment. Meeting with Chinese enterprises, Prime Minister Pham Minh Chinh called on them to invest in the fields of transport infrastructure, urban railway projects, high-tech projects, etc. in Vietnam.

The Minister of Planning and Investment also expressed his hope that Chinese investors would pay attention to and increase cooperation, technology transfer, improve production capacity, and bring Vietnamese enterprises deeper into the global commodity value chain.

When the bilateral cooperation between Vietnam and China is strengthened, it will also be a favorable condition for the investment flow from China to Vietnam to be stronger and, importantly, of better quality.

"Vietnam welcomes Chinese investors to invest in the fields of high technology, renewable energy, supporting industries, electronic components, electric cars, electric batteries, essential infrastructure, forming international financial centers, green finance, smart cities, ecological industrial parks, free trade zones... These are industries and fields in which China has experience and strengths, and Vietnam has demand and development potential."

Minister of Planning and Investment Nguyen Chi Dung

Source: https://baoquocte.vn/san-sang-don-dong-von-dau-tu-chat-luong-cao-tu-trung-quoc-283146.html