According to statistics from the Ministry of Planning and Investment, as of July 20, total foreign direct investment (FDI) in Vietnam reached over 18 billion USD, marking a 10.9% increase compared to the same period last year. In the first 7 months of 2024, FDI disbursement in Vietnam was estimated at $12.55 billion, reflecting an 8.4% year-on-year growth. China emerged as the leading partner in terms of new investment projects, with 540 new projects and a total newly registered capital of $1.22 billion, accounting for 29.7% of all new investment projects nationwide. In addition, 113 projects saw capital increases totaling $303.21 million, while 268 instances of capital contributions and share purchases from China amounted to $124.021 million in the first seven months of 2024.
(Source: Internet)
Previously, investment flow from China focused on industries such as manufacturing and processing wooden furniture, iron and steel, leather footwear products, garments production, food processing, plastic packaging, etc. However, recent trends indicate a shift towards high-tech industries, including components and parts for industrial production, electronics, the automotive sector, etc.
Currently, Vietnam hosts 4,750 projects from China across 19 different sectors. Among these, the two industries that attract the most interest from Chinese investors are the manufacturing and processing industry, with 2,630 projects and a total investment of $22.7 billion, making up 79.6% of China’s total FDI in Vietnam. The second most invested sector is the motorcycle industry, with 1,216 projects and $522.6 million in capital, representing 1.83% of the total investment.
Earlier this year, Victory Giant Technology Group decided to invest in a project focused on the research, development, production, and trading of high-precision circuit boards, with an investment of over $800 million, in Bac Ninh. Meanwhile, Runergy Group continues to advance its $440 million project specializing in the production of semiconductor components, including silicon rods and wafers, in Nghe An. Additionally, several other Chinese companies, such as Power China, China Rare Earth Group, Haosen Electronic Battery Company, Goertek, BYD, Radian, Brotex, Wingtech, Deli, and Trina Solar, etc have also announced new investment plans in Vietnam soon.
As bilateral cooperation between Vietnam and China strengthens, these favorable conditions are expected to further boost Chinese investment the flow into Vietnam more robustly, and, importantly, with improved quality.