In October, Quảng Ninh Province granted an investment registration certificate for the Jinko Solar Hai Ha Vietnam photovoltaic cell project capitalised at $1.5 billion. — Photo markettimes.vn
Việt Nam is anticipated to emerge as a destination for Chinese enterprises in the near future, as investments from the neighbouring country have become increasingly diverse in areas such as energy, green development, and digital economy, according to experts.
Accelerating investment in Việt Nam
This year, many Chinese enterprises, especially those with the ability to participate deeply in the global supply chain, have made investment surveys in the northern provinces of Việt Nam.
For example, Wingtech, China's largest smartphone assembly company, pledged to continue surveying investment opportunities in Phú Thọ Province. Goertek poured US$280 million into a new project while expanding an existing one in Bắc Ninh Province. Another firm, China’s largest EV company BYD, invested $269 million in an automobile component manufacturing project in Phú Thọ Province.
Baodautu.vn cited Đỗ Văn Sử, Deputy Director of the Foreign Investment Agency under the Ministry of Planning and Investment (MPI), as saying that China has been one of the largest foreign investors in Việt Nam over the past five years.
In the first 11 months of 2023, China pumped $3.96 billion in Việt Nam, ranking fourth among countries and territories investing in the country. To date, Chinese financiers have injected over $27 billion in 4,161 projects across Việt Nam, placing sixth out of 143 countries and territories investing in the country.
According to the MPI, investment capital flows from China to Việt Nam have changed significantly in recent years in a variety of areas. In addition to restaurants, hotels, and consumer goods, Chinese investors have expanded into electricity, electronics, tire production, textiles, and footwear. This has made an important contribution to developing the country's supporting industries.
Most notably, in October, the northern province of Quảng Ninh granted an investment registration certificate for the Jinko Solar Hai Ha Vietnam photovoltaic cell project capitalised at $1.5 billion. The main investor for the project is Jinko Solar Holding, the world's largest and most advanced solar panel manufacturing corporation from China.
John Campbell, Associate Director and head of the Industrial Services Department at Savills Vietnam, outlined Việt Nam's geographic location (adjacent to China), creating favourable conditions for the transportation of goods, raw materials and production lines as one of the major reasons why Việt Nam attracted Chinese businesses.
In addition, Việt Nam's high level of economic integration has also helped Chinese businesses expand their presence in the market, he told baodautu.vn, adding that Việt Nam also possesses an abundant labour force, including a highly skilled workforce, with competitive labour costs.
Waiting for large projects
Chairman of the Vietnam Association of Foreign Invested Enterprises Nguyễn Mại said besides Việt Nam, 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 this investment inflow.
However, with the potential for economic and investment cooperation, there would be many more large investment projects from China into Việt Nam, Mại said.
From now until 2025 or beyond, Việt Nam would become a destination for Chinese investors, Mại said, adding that the investors could not miss investment opportunities in Việt Nam to take advantage of potential export partners to trade goods.
During a meeting with Prime Minister Phạm Minh Chính in June, leaders of Chinese giants such as Hong Tian Zhu, Texhong, Song Hailiang, Energy China, Jiang Bin and Goertek praised Việt Nam's dynamic development, and expressed their desire to expand production and business in Việt Nam.
Leaders of these businesses said they wanted to expand investment in Việt Nam in a number of fields such as energy, industrial park infrastructure, social housing, inland waterway ports, automobile manufacturing, research and development, supply chain development. — VNS