Brian Jeffrey
An increase in Chinese investment delegations has been noted in Vietnam, leading to a rise in demand for market, economic, and investment information.
Chinese investors have turned to Vietnam since 2019 amid trade tensions with the United States and a slowdown in China’s economy. Statistics from the Ministry of Planning and Investment show that in the first half of the current year, China led in new investment projects at 29%, surpassing South Korea.
Various regions in Vietnam have seen significant Chinese investments, such as Bac Ninh and Quang Ninh. Projects in manufacturing, solar panels, semiconductors, and auto parts have attracted millions in investment.
Chinese investment in Vietnam has grown from USD 2.92 billion in 2021 to USD 4.47 billion in 2023, with investments reaching USD 1.01 billion in the first half of this year, making up 10.6% of total investments.
Chinese investments now account for 19.4% of all registered foreign direct investments in Vietnam, second only to South Korea at 28.8%. The increase is attributed to factors like China’s proximity to Vietnam, rising production costs in China, and global trade shifts.
Chinese companies tend to dominate sectors such as computer/electronic manufacturing, rubber/plastics, and textiles. They are less involved in services and information/communication sectors.
Chinese enterprises in Vietnam often focus on wholesale/retail, computer/electronic manufacturing, and metal/electrical equipment production. These companies are located across various provinces, opting for regions like Binh Duong, Quang Ninh, and Long An due to competitive land prices.
Majority of Chinese enterprises in Vietnam concentrate on exports, with many supplying products to other foreign-invested enterprises and local businesses while actively engaging in business partnerships.
