ASEAN KEY DESTINATIONS
Chinese businesses sharply increase investment in Viet Nam
Investors from mainland China have been developing their businesses in Viet Nam to take advantage of free trade agreements (FTAs), as the country is a Trans-Pacific Partnership member.
According to the Ministry of Planning and Investment’s Foreign Investment Agency, Chinese businesses had sharply increased their investment capital from $312 million in 2012 to $2.3 billion in 2013 and $7.9 billion in 2014.
Currently, some 1,346 Chinese projects are in operation in Vi?t Nam, with total registered capital of US$10.4 billion, making China the 9th largest investor of the 112 nations and territories investing in the country.
The Chinese projects are each worth $7.7 million on average, half the average value of foreign investment projects in Viet Nam.
Data released by the planning and investment ministry’s Foreign Investment Agency showed that Chinese businesses had been focusing on investments in processing and manufacturing industries in Viet Nam, with 916 projects worth $5.38 billion, accounting for 68 per cent of the total number of Chinese projects in Vi?t Nam. Other Chinese projects are being conducted in production lines, electric distribution systems, gas, water and air conditioners.
The businesses have invested in 54 of the total 63 cities and provinces nationwide, concentrating on areas with good infrastructure that are close to the Viet Nam–China border or where many Chinese live, such as in the northern provinces of Lao Cai, Quang Ninh and H?i Ph?ng and in HCM City.
The southern province of Binh Thuan has attracted the highest investment capital from Chinese businesses, with more than $2 billion spread over five projects. It’s followed by southern Tay Ninh Province, with 36 projects worth $1.2 billion, and northern Ha Giang Province, with five projects worth more than $1 billion.
By the end of 2015, Viet Nam had invested in 15 projects in China, with total registered capital of more than $16 million, focusing on production and service. This included the $3 million project to construct a trade centre by Viet Trang Import-Export Joint Stock Company and the $6 million workshop for the production and trade of weighing scales.
Speaking at a Viet Nam–China business forum held in Ha Noi earlier this year, Deputy Head of the Viet Nam Chamber of Commerce and Industry’s International Relations Division Ph?m Quang Th?nh said when the TPP agreements were fully approved, Viet Nam was recognised as a gateway to enter the markets of ASEAN members and the rest of the world due to its geographic advantages and dynamic economy.
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