18.11.2020, 03:39

Chinese investment into Vietnam on the sharp rise

Chinese investment in Vietnam has considerably risen over the past five years, surpassing South Korea and Japan.

According to the Ministry of Planning and Investment, Vietnam attracted total foreign direct investment (FDI) of USD23.4 billion, down 5.7% on-year in the first ten months of this year.

Chinese investment into Vietnam on the sharp rise

Of that sum, Chinese investors accounted for USD4.86 billion, including those from Hong Kong and Taiwan, exceeding Japanese and South Korean investors with USD1.7 billion and USD3.4 billion respectively.

By the end of October this year, Vietnam had attracted a total USD76 billion FDI from China, including investment from Taiwan and Hong Kong, compared to USD70.4 billion from South Korea, USD60 billion from Japan and USD55.7 billion from Singapore.

Chinese investment into Vietnam has almost doubled over the past five years; but investment by Chinese projects in Vietnam is quite modest at around USD4.5 million between January and October this year.

Economist Nguyen Duc Thanh, former head of the Vietnam Institute for Economic and Policy Research (VEPR), said that Chinese investors want to take advantage of Vietnam as an outsourcing market for export. Vietnamese cheap labour is also an attractive factor for them.

China’s higher investment into ASEAN, including Vietnam had shown the development of the Chinese economy.

Economist Pham Chi Lan said that Vietnam should carefully select Chinese projects for environmental protection, adding that textile, dyeing and garment projects need to be turned down.