The representative explained that there has been a recent surge in Chinese investment delegations coming to explore opportunities in Vietnam, significantly increasing the demand for market, economic, and investment environment information.

According to a report by the Vietnam Chamber of Commerce and Industry (VCCI), since 2019, amidst escalating trade tensions between China and the United States and a slowdown in China's economic growth, Chinese investors have begun seeking opportunities in Vietnam.

In the first half of this year alone, China led in the number of new investment projects, accounting for 29%, surpassing even South Korea, according to statistics from the Ministry of Planning and Investment.

In Bac Ninh, two large Chinese projects have expanded their scale and increased investment capital. Goertek continues to invest in its factory at VSIP Bac Ninh 2 Industrial Park, covering 10 hectares, focusing on research, development, production, and high-precision circuit board manufacturing with an investment of over USD 800 million. Additionally, Foxconn has registered to adjust its investment capital, adding more than USD 380 million.

Quang Ninh has attracted a USD 1.5 billion solar panel manufacturing project. Nghe An has secured a USD 293 million semiconductor factory project. Phu Tho has a USD 269 million auto parts manufacturing project. Hai Duong has drawn two more projects from Chinese enterprises, with a total investment of nearly USD 400 million, specializing in office supplies production.

Since 2019, amid deteriorating trade relations between China and the United States and a slowdown in China’s economic growth, Chinese investors have increasingly sought opportunities in Vietnam. Chinese investment surged from USD 2.92 billion in 2021 to USD 4.47 billion in 2023. In the first half of this year, investment from China reached USD 1.01 billion, accounting for 10.6%.

As of recently, Chinese investment has increased to 19.4% of the total registered foreign direct investment (FDI) in Vietnam, closely following South Korea at 28.8% and Japan at 23%, according to the VCCI report. This upward trend is attributed to the geographic proximity of Chinese investors to Vietnam, rising production costs in China, and global trade fluctuations driving Chinese businesses to expand abroad.

VCCI research indicates that Chinese companies dominate certain sectors, particularly in manufacturing computers/electronic equipment (9%), rubber/plastics (8%), and textiles (5%). Conversely, Chinese enterprises have a minimal presence in the services sector (2%) and are almost absent in the information and communication sector.

Chinese companies that have registered investment licenses in Vietnam since 2019 tend to operate more in areas such as wholesale/retail, manufacturing computers/electronic equipment, processing and manufacturing metal products, and producing electrical equipment.

Chinese enterprises in Vietnam tend to choose different investment locations compared to foreign-invested enterprises from other countries. Rather than concentrating in major urban centers like Ho Chi Minh City and Hanoi, as other FDI enterprises do, Chinese companies are spread relatively evenly across various provinces. Binh Duong, Quang Ninh, and Long An each have 7% Chinese enterprises, while emerging industrial provinces in the North, such as Bac Giang, Hai Duong, and Hai Phong, each have about 6%. These provinces attract Chinese investors due to geographic proximity and competitive land prices.

More than half of Chinese enterprises focus on exports (54%). Around 50% of Chinese companies supply products to other FDI enterprises in Vietnam, and 45% provide products and services to Vietnamese businesses. Notably, Chinese enterprises tend to engage in business cooperation with Vietnamese partners more than other FDI enterprises.

Lan Anh