China speeds up investment in Việt Nam

Thursday, May 30, 2024 16:31

Yarn production line at Chinese-invested Jasan Vietnam Company in Hưng Yên Province. — VNA/VNS Photo

An upward trend has been recorded in Chinese recent investments in Việt Nam, which is hoped to help fuel the industries the country has demand for such as high technology, renewables, supporting industries, electronics and green finance.

More than US$11.07 billion in foreign investment was registered during the first five months of 2024, up 2 per cent year on year, reported the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.

FIA noted that Singapore tops foreign investors in Việt Nam during the period, with nearly $3.25 billion registered, accounting for 29.3 per cent of the total and increasing 28.2 per cent year on year. However, it is China who takes the lead in the number of new investment projects that make up 28.3 per cent of the total, statistics show.

Between January and May, Chinese investors channelled $1.126 billion into 347 new projects, 55 existing projects, and 172 capital contribution and share purchase transactions.

In 2023, Chinese investors registered $4.47 billion in investment capital, soaring 77.6 per cent from the previous year. The sum was earmarked for 707 new projects, 179 existing ones, and 412 transactions of capital contribution and share purchase.

Minister of Planning and Investment Nguyễn Chí Dũng also underscored an upward trend in Chinese investments in Việt Nam. Notably, many international-level enterprises of China in such areas as technology, electricity - electronics, processing, manufacturing, infrastructure, renewable energy, and electric vehicle have come to the Southeast Asian nation.

The 2023 Provincial Competitiveness Index (PCI) and Provincial Green Index (PGI) report reserved a section for the investment trend of China. It said Chinese investors have been seeking opportunities in Việt Nam since 2019 amid the China-US trade tension and a growth slowdown in the world’s second biggest economy.

Chinese investment into Việt Nam surged to $4.47 billion in 2023 from $2.92 billion in 2021, according to the report.

Minister Dũng emphasised selective investment and stronger ties between foreign and domestic sectors, promoting a digital, green, circular, and knowledge-based economy. Việt Nam invites Chinese investors in high tech, renewable energy, supporting industries, electronics, electric vehicles and batteries, infrastructure, financial centres, green finance, smart cities, eco-industrial parks and free trade zones.

These are the industries matching China’s experience and strength as well as Việt Nam’s demand and potential, he continued, voicing his hope that Chinese investors will step up technology transfer and help local firms improve production capacity so that Vietnamese businesses can engage more deeply in global value chains. — VNS

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