Summary
According to the latest report from Vietnam’s Ministry of Planning and Investment, foreign direct investment (FDI) from China continued to grow in the first seven months of this year, and the number of projects ranked first. As a leading service organization dedicated to assisting Chinese and global small and medium-sized enterprises to successfully go global, Wanqibang actively participated in and promoted this investment boom, building an important bridge for China-Vietnam economic and trade cooperation.
Chinese investment in Vietnam continues to grow
Data from the Vietnamese Ministry of Planning and Investment shows that in the first seven months of 2023, the number of new Chinese investment projects in Vietnam ranked first among 91 investment countries and regions, accounting for 29.7% of the total number of projects. This data reflects the high attention and confidence of Chinese companies in the Vietnamese market.
Meanwhile, Singapore leads in terms of investment amount, with a cumulative investment of nearly US$6.52 billion, accounting for 36.2% of the total, up 79.1% year-on-year. Hong Kong, China, followed closely behind, with an investment of more than US$2.19 billion, accounting for 12.2% of the total. Japan, mainland China and South Korea followed closely behind.
Diversification of investment areas
Wanqibang noted that China’s investment in Vietnam is gradually shifting from traditional industries to high-tech fields. In the past, Chinese investment was mainly concentrated in manufacturing, such as household wooden furniture, steel, footwear, clothing, food processing and plastic packaging. In recent years, the proportion of investment in emerging fields such as high-tech industries, electronic manufacturing, automobiles, and renewable energy has continued to increase.
Wanqibang assists many Chinese companies in developing high-tech and sustainable development investment projects in Vietnam by providing professional market research and strategic consulting services. Our expert team deeply analyzes the dynamics of the Vietnamese market and formulates the best investment strategy for our clients to ensure the successful implementation of the project.
Highlights of major investment projects
Recently, Chinese technology giant BOE Technology Group (BOE) invested in the construction of a smart terminal factory in Phu My 3 Industrial Park in Ba Ria-Vung Tau Province, Vietnam, with a total investment of US$277.5 million. The factory will focus on the assembly and manufacturing of computer, TV and circuit board screens and is expected to be put into production in 2026. As early as 2019, BOE had established its first factory in Dong Nai Province. Wanqibang has played an important role in these large-scale projects, providing one-stop services from site selection and planning, legal compliance to human resources management to ensure the smooth progress of the project and compliance with local policies and regulations.
Hai Phong City and Binh Duong Province become investment hotspots
As one of the main destinations for foreign direct investment, the northern port city of Haiphong is actively attracting Chinese investment. During a recent visit of a Haiphong delegation to China, the government issued seven investment registration certificates with a registered capital of nearly US$200 million and signed four memorandums of understanding on cooperation.
Binh Duong Province in the south has also attracted a large amount of foreign direct investment, with 4,322 active projects and a total investment of more than US$40.9 billion, accounting for more than 8.5% of the total foreign investment in the country. Binh Duong Province is also one of the regions with the largest number of investment projects in China. Wanqibang has professional teams in Haiphong City and Binh Duong Province, which have an in-depth understanding of the local investment environment and policies, provide customized investment solutions for customers, and help enterprises efficiently integrate into the local market.
In-depth analysis: Trends and challenges in China-Vietnam investment relations
1.The necessity of investment diversification and high-tech development
In recent years, China’s investment in Vietnam has gradually shifted from traditional manufacturing to high-tech fields, which not only reflects the improvement of the status of Chinese companies in the global supply chain, but also shows Vietnam’s successful transformation in attracting high-quality foreign investment. With the re-layout of the global industrial chain, high value-added industries have become the focus of countries competing to attract. Vietnam’s attractiveness in the high-tech field lies not only in its labor cost advantage, but also in its gradually improved infrastructure and policy support.
However, this trend also brings some challenges. Investment in high-tech fields is usually accompanied by higher technical barriers and management complexity. When Chinese companies invest in high-tech projects in Vietnam, how to effectively transfer technology, protect intellectual property rights, and manage cross-cultural teams have become urgent issues to be solved. Wanqibang plays a key role in this process, providing comprehensive consulting and support to ensure that companies can overcome these challenges and achieve the expected return on investment.
2.the strategic significance of regional investment hotspots
As the main hotspots for foreign direct investment, Haiphong City and Binh Duong Province each have unique strategic significance. With its superior port conditions and mature industrial base, Haiphong City has become the preferred destination for investors from China and other countries. It is not only the economic center of northern Vietnam, but is also gradually developing into a regional logistics and manufacturing hub.
Binh Duong Province has attracted a large number of manufacturing investments with its excellent investment environment and convenient transportation conditions. As the Binh Duong Provincial Government continues to promote the construction of industrial parks and infrastructure upgrades, the region is expected to attract more high-quality foreign direct investment projects in the future. However, with the surge in investment projects, how to effectively manage resources and avoid excessive competition and environmental pressure will become a problem that needs to be balanced in future development.
3.Long-term Prospects for Sino-Vietnamese Economic and Trade Relations
The economic and trade cooperation between China and Vietnam, especially in the field of foreign direct investment, is showing a trend of deepening. By attracting a large amount of investment from China, Vietnam has improved its position in the global supply chain and optimized its economic structure. However, the differences between China and Vietnam in economic development stages and industrial structures may also lead to new cooperation and competition models in the future.
Looking ahead, whether Vietnam can enhance the innovation capabilities of local enterprises and promote the coordinated development of domestic and foreign-funded enterprises while introducing foreign investment will determine whether it can continue to attract high-quality foreign direct investment. This also provides a broad market space for professional institutions such as Wanqibang to help enterprises achieve deeper strategic cooperation within the framework of China-Vietnam cooperation.
4.An investment environment where risks and opportunities coexist
Although Vietnam has become a hot spot for foreign direct investment in recent years, its investment environment still has some risks, such as policy uncertainty, imperfect legal system, relatively backward infrastructure, etc. Especially in the context of increasing global economic uncertainty, how to avoid investment risks and ensure the long-term sustainable development of projects is an issue that every investor needs to pay attention to.
Vanzbon has accumulated rich experience through deep cultivation in the Vietnamese market and can provide investors with customized risk assessment and management solutions to help companies gain an invincible position in a complex market environment. We believe that through accurate market insights and effective risk control, Chinese companies’ investment in Vietnam will not only lead in quantity, but also in quality and sustainability.
Ten thousand enterprises help boost China-Vietnam economic and trade cooperation
As a firm partner of Chinese enterprises going global, Vanzbon is committed to promoting economic and trade cooperation between China and Vietnam. We provide comprehensive services, including:
Market and policy research:In-depth analysis of Vietnam’s market environment and policy trends to help companies seize investment opportunities.
Legal Compliance and Business Establishment:Assist enterprises to complete company registration, tax registration, license application and other procedures to ensure compliance operations.
Supply Chain and Logistics Management:Optimize supply chain layout, improve logistics efficiency and reduce operating costs.
Digital Marketing and Branding:Help companies enhance their brand influence and expand sales channels in the Vietnamese market.
With our professional support, many Chinese companies have successfully expanded their business in Vietnam, promoting local economic development and employment growth.
Looking ahead
Nguyen Chi Dung, Minister of Planning and Investment of Vietnam, said that Vietnam will continue to be committed to attracting high-quality, high-tech and large-scale foreign direct investment projects and strengthening the close connection between the foreign-funded sector and the domestic economy. To achieve this goal, the Vietnamese government will optimize the investment environment, simplify administrative procedures and provide more policy support.
Vanzbon will continue to play a bridging role, helping more Chinese and global small and medium-sized enterprises seize opportunities in the Vietnamese market and achieve the goal of global development. We firmly believe that through professional and efficient services, we can create greater value for our customers and contribute to the economic cooperation between China and Vietnam.
