“From 2016 up to now, China investment capital into Vietnam climed sharply; in which, production capacity is expanding and large investment projects are thriving”, quoted by Chen De Hai, Chinese Consulate-General as saying.
Chen De Hai also states the portfolio is quite diversified with numerous projects, which value from hundreds of million to more than 2 billion US dollars in thermal power, wind power, solar cell production, textiles or tire production.
Chen De Hai also states the portfolio is quite diversified with numerous projects, which value from hundreds of million to more than 2 billion US dollars in thermal power, wind power, solar cell production, textiles or tire production.
In 2017, China's committed investment capital ranks fourth among countries and territories investing to Vietnam, which proving a leap cause the country hardly lie in the top five foreign investors with significant capital investment to Vietnam during the past few years. 2017 also witnessed many M&A deals between Chinese and Vietnamese enterprises in real estate.
According to the Management Board of Processing Zones and Industrial Zones of Ho Chi Minh City, the projects of Chinese enterprises licensed in the past year are modest with limited investment capital. Most notably, the project of Worldon Vietnam Co., Ltd with investment capital of US$310 million in Dong Nam Industrial Zone, was inaugurated at the end of November 2017.
However, there are indications that not only investment through M&A and focus on real estate but Chinese enterprises would pour more investment in Vietnam’s manufacture sector.
It has been known that the enterprises’ investment activities in textile, fiber and leather footwear are in the China’s adjusted roadmap policy and are encouraged to invest abroad.
Meanwhile, tax incentives is among advantages Chinese exporters desire to take from free trade agreement signed between Vietnam and US, European countries.
A stark example is that Bank of China in Ho Chi Minh City and Shenzhen Securities Information Limited Company (under Shenzhen Stock Exchange) inked a contract in December 2017, on promoting Chinese capital investment in Vietnam.
According to analysts, China's strong investment in manufacturing sectors, such as steel, textiles, fiber, furniture, etc., would totally be the new trend in the long term.
Chinese committed investment capital in 2017 totaled up to US$2.17 billion, of which are 284 new projects with total registered capital of US$1.4 billion and 83 adjusted capital projects with additional capital amount of US$271 million, Ministry of Planning and Investment’s statistic said.
In addition, there are 817 investors to contribute capital and purchase shares, amounted to more than US$487 million.
