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Update news Chinese FDI
The world’s leading companies such as HP, Dell, Microsoft and Amazon have recently indicated plans to relocate most of their operations out of China. What should Vietnam do to drive the capital here?
Vietnam ranks among the top 3 rice and coffee exporters in the world, and its vegetable and fruit exports are expected to reach $10 billion prior to 2025.
Saying that there is no discriminatory treatment to investment sources, experts have stressed that Vietnam needs a tool to ‘filter’ capital to prevent risks.
Chinese investors are pouring money ino Vietnam as a shelter from the US-China trade war.
Japanese investment in the manufacturing and processing industries has bounced back after five years of decline.
Chinese investment capital in the first four months of 2019 alone amounted to 70 percent of the investment capital in the entire year 2018.
Of seven large projects registered in the first five months of 2019, five belonged to Chinese investors.
As more Chinese expand their businesses in Vietnam, many domestic enterprises have become Chinese partners or have been taken over by Chinese.
VietNamNet Bridge – The International Monetary Fund (IMF) figures show that China became Vietnam’s biggest export market in 2017. The position had belonged to the US for the last 15 years.
VietNamNet Bridge - Chinese FDI (foreign direct investment) flow to Vietnam has been increasing rapidly recently as Vietnam is one of the destinations included in China’s ‘One belt, one road’ strategy’.
VietNamNet Bridge - Vietnam needs to be careful about using foreign capital, especially that from China, economists say.
VietNamNet Bridge - While affirming that FDI from China will bring capital and jobs, economists say the FDI flow should be received in a selective way.
VietNamNet Bridge - If China can control textile and garment production, it will be able to control the Vietnamese industry that makes products for export, experts have warned.
VietNamNet Bridge - Many merger and acquisition (M&A) deals have concluded recently, after which Vietnamese companies joined Chinese textile & garment production chains.
Chinese investors have shown greater interest in Vietnam as an investment destination, especially after Vietnam concluded negotiations for the Trans Pacific Partnership Agreement and signed a series of free trade agreements (FTAs).
VietNamNet Bridge - Will the increasingly high investments by mainland China, Taiwan, Hong Kong and Macau bring opportunities or challenges?