Chinese FDI inflows into Vietnam are shifting from traditional manufacturing sectors like footwear and textiles to high-tech industries.
China accelerates investment in Vietnam
Mr. Joon Suk Park, Head of International Business at HSBC Vietnam’s Corporate Banking Services, stated that funds from Mainland China, Hong Kong, and Taiwan are increasingly flowing into Vietnam. “This is driven by the deep similarities between the two economies, propelled by the changing and realigning global supply chains,” he said.
In terms of newly registered FDI capital, Mainland China, Hong Kong, and Taiwan contribute 60% of Vietnam’s total FDI, up from just 38% in 2022. Additionally, as of the first half of this year, nearly 50% of newly registered FDI from Singapore is actually sourced from investments originating in China and Taiwan.
Chinese enterprises are becoming increasingly important in the global supply chain. Specifically, for ASEAN, the growing trade deficit with China is largely due to ongoing supply chain restructuring.
Shift of FDI into high-tech industries
Chinese FDI inflows into Vietnam are shifting from traditional manufacturing sectors like footwear and textiles to high-tech industries.
This information was highlighted at the Ho Chi Minh City and Greater Bay Area (Guangdong-Hong Kong-Macao, China) Investment and Trade Forum held in Ho Chi Minh City on December 17.
In the past, Chinese FDI in Vietnam primarily focused on processing and manufacturing industries, including furniture, footwear, and textiles. However, Chinese investment is now shifting toward high-tech industries such as electronics, automobiles, and green energy.
Regarding investors, Mr. Jesse Choi, representative of the Greater Bay Area Entrepreneurs Alliance (GBA) in Vietnam, stated that the GBA Alliance is leveraging its strengths in technology and finance to support Vietnamese businesses in accessing the Chinese market and building long-term partnerships.
Through its branch in Vietnam, the GBA Alliance will focus on critical areas such as sustainable technology, innovation, and entrepreneurship, thereby promoting the development of a green economy.
“The GBA Alliance is committed to helping Vietnamese businesses overcome challenges, apply advanced technologies, and expand their influence in the global market,” emphasized Mr. Jesse Choi.
“Looking toward 2025, we anticipate a new beginning with even more opportunities for mutually beneficial cooperation. I have always regarded Vietnam as my second home, and I am confident that businesses will be impressed by the appeal and the myriad investment opportunities this S-shaped country has to offer,” said Mr. Jonathan Choi regarding investment opportunities in Vietnam.
