China Expedites Investment in Vietnam
Hanoi – In a noteworthy development, China has surpassed Japan to secure the third position among countries and territories with significant investments in Vietnam since the beginning of this year. Data from the Foreign Investment Agency (FIA) of Vietnam’s Ministry of Planning and Investment reveals that Chinese investors registered over $2.33 billion in Vietnam between January and July, solidifying their position in the top three. Additionally, China claims the top spot in terms of the number of new projects, with 325 projects in consideration.
Despite the challenges posed by the COVID-19 pandemic, China continues to make substantial investments in Vietnam, consistently securing either the third or fourth place among foreign investors. In 2020, China registered a capital of $2.46 billion in Vietnam, followed by $2.92 billion in 2021 and $2.5 billion in 2022.
Recent reports highlight the significant interest of Chinese investors in the Vietnamese market. Two leading Chinese manufacturers of batteries and energy storage systems have announced plans to invest over $1 billion in constructing new factories and expanding their operations in Vietnam. Xiamen Hithium Energy Storage Technology is set to invest approximately $900 million in a factory in the northern province of Hai Duong, while Growatt New Energy is expanding its factory in the northern port city of Hai Phong with an estimated investment of $300 million.
Furthermore, the authorities of Nghe An province recently granted an investment registration certificate to Greenwich Management Limited, a subsidiary of the Chinese group Shandong Innovation Metal Technology, to establish its Innovation Precision factory in the Vietnam-Singapore Industrial Park (VSIP) Nghe An. With a capitalization of $165 million, the plant specializes in producing aluminum alloys for consumer electronics, green energy, and other sectors, and is expected to commence operations in October 2024. Cui Guo Chang, special assistant to the chairperson of the group, highlighted that this investment project marks Shandong’s first venture outside of China.