China leads in number of new FDI projects
On the afternoon of August 13, the Hai Phong Economic Zone Management Board received and worked with a delegation of Chinese enterprises. Mr. Si Zhong Wu, Director of Goldwind International Southeast Asia, representing enterprises in the supply chain of manufacturing components for wind turbines in China, said that Goldwind is in the top 3 wind turbine manufacturers in the world, supplying more than 47,000 wind turbines with a total global installed capacity exceeding 97 GW. On this occasion, the delegation wanted to survey and select an investment location to build a factory to produce components and assemble high-tech wind turbines in the Lach Huyen Tariff-Free Zone, Logistics and Industrial Zone (Hai Phong).
Factory of Jasan Textile Dyeing Company Limited (100% Chinese capital) in Hung Yen
A week earlier, at the Hai Phong Investment Promotion Conference held in Shenzhen City (China), Hai Phong City leaders awarded 7 new registration certificates and investment expansion certificates to Chinese investors with a total capital of nearly 200 million USD. The fields in which Chinese enterprises expanded their investment on this occasion were mainly in the production of solar panels, electronic components, and auto parts processing. At this event, the Hai Phong Economic Zone Management Board also signed 4 memorandums of understanding with major Chinese investors.
If in the past, China was only Vietnam's leading trade partner, in the past 5 years, China has always been in the top 5 countries with the largest investment in Vietnam. Data from the Foreign Investment Agency (Ministry of Planning and Investment) shows that in the first 7 months of this year, Singapore led with a total FDI capital in Vietnam of nearly 6.52 billion USD, accounting for nearly 36.2% of the total investment capital, an increase of more than 79% over the same period; Hong Kong ranked second with more than 2.19 billion USD, accounting for 12.2% of the total investment capital, more than double the same period. Next are Japan, China... However, China leads in the number of new investment projects (accounting for nearly 30%), increasing 7 times and becoming the 6th largest investor out of 146 investment partners in Vietnam.
Minister of Planning and Investment Nguyen Chi Dung commented: The most noticeable positive thing is that FDI capital from China has seen the appearance of many internationally-recognized corporations in the fields of technology, electricity - electronics, processing, manufacturing, infrastructure, renewable energy, electric vehicles, etc.
Observations show that while Chinese FDI capital in Vietnam used to focus on manufacturing, processing household wooden furniture, iron and steel, leather shoes, garments, food processing, plastic packaging, etc., in recent years, Chinese capital has shifted to high-tech industries, components, spare parts for industrial production, electronics, automobiles, green energy. Recently, Beijing BOE Group invested in a smart terminal factory in Phu My 3 Industrial Park (Ba Ria-Vung Tau) with a total capital of 277.5 million USD, specializing in assembling and manufacturing screens for computers, televisions, circuit boards, etc., expected to operate in 2026. In 2019, Beijing BOE also put into operation a factory in Dong Nai.
Up to now, many projects worth hundreds of millions of USD, even up to billions of USD from China such as Goertek, BYD, Radian, Brotex, Wingtech, Deli, Trina Solar... have been present in Vietnam. The most recent is the joint venture project with Geleximco Group, producing Omoda and Jaecoo electric vehicles (belonging to China's Chery Group) worth more than 800 million USD.
Market of billion dollar agricultural products
In addition to increasing investment capital, in terms of trade, China is currently the largest market for Vietnamese agricultural products. According to the General Department of Customs, in 2018, the total bilateral trade turnover between Vietnam and China exceeded the 100 billion USD mark for the first time. By 2023, this figure will increase to 171.2 billion USD, accounting for more than 25% of the country's total import-export turnover.
Many groups of Vietnamese agricultural products exported to China reached a value of billions of USD.
In particular, thanks to this huge market, 12 groups of Vietnamese agricultural products have become billion-dollar industries. Specifically, for fruits and vegetables, exports to China account for 53.7% of the volume of goods exported abroad; lychee exports account for 90%; dragon fruit accounts for more than 80%; rubber accounts for 71% and China is currently the third market for Vietnamese seafood. According to the General Department of Customs, some Vietnamese agricultural products exported to China have grown dramatically in the past year, notably durian reaching more than 2.2 billion USD, 5 times higher than the previous year.
Mr. Dang Phuc Nguyen, General Secretary of the Vietnam Fruit and Vegetable Association, commented: In addition to the market with high consumption demand, goods exported to China have many advantages due to low logistics costs and fast delivery time. In particular, Chinese consumers favor many types of Vietnamese fruits. Over the past years, fruit products officially exported to China have always achieved much higher export turnover than other types of fruits. 11 types of Vietnamese fruits currently officially exported to China include mango, dragon fruit, banana, longan, lychee, watermelon, rambutan, jackfruit, mangosteen, passion fruit and durian, which are among the top in terms of export turnover.
Professor, Dr. Nguyen Mai, Chairman of the Association of Foreign Investors, commented that the trade relations between Vietnam and China are complementary in the structure of import and export of goods. For example, Vietnam exports to China telephones, electronic components, coffee, rubber, agricultural and aquatic products, etc.; in the opposite direction, China exports many types of machinery, raw materials, construction materials, footwear, fabrics, etc. to Vietnam.
Regarding investment, according to Professor Nguyen Mai, Chinese FDI capital pouring into Vietnam is increasing due to the advantages from the domestic market with this country. China is still facing difficulties due to trade competition with the US. China's exports to the US and European markets have decreased significantly during and after the pandemic, especially in the high-tech sector. Meanwhile, Vietnam is located right next door, has a very good economic and trade relationship with the world, and preferential tariffs through multilateral and bilateral free trade agreements that Vietnam has signed are great advantages for exporting goods.
Therefore, investing in Vietnam is to seek opportunities for production linkage, thereby creating a closed supply chain in production and business in this market. Chinese enterprises are very good at catching up with global economic trends and meeting market needs. Vietnam with its convenient geographical location, relatively cheap labor costs compared to domestic, low land rental costs, tax incentives, etc. will be attractive factors for investors from this country. Vietnam also benefits from having raw materials invested in production on the spot, exporting and enjoying added value from here. Those are the attractions of Vietnam to Chinese investors.
In the old way of thinking, we often think that goods from China are not of good quality. But with modern technology, even world-leading technology, China is a quality investor. In recent years, capital flows in high technology, future technology, AI, etc., areas that we really need, China is also very strong. More importantly, we have the right to choose the best investor for ourselves.
Professor, Dr. Nguyen Mai , Chairman of the Association of Foreign Investors
Thanhnien.vn
Source: https://thanhnien.vn/von-dau-tu-trung-quoc-do-manh-vao-viet-nam-185240815231707003.htm
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