A section of Cat Linh-Ha Dong urban railway project in Ha Noi. It is one of many projects invested by Chiness businesses in Viet Nam. — Photo vnexpress.net
HÀ NỘI (VNS) — Investors from mainland China have been developing their businesses in Việt Nam to take advantage of free trade agreements (FTAs), as the country is a Trans-Pacific Partnership member.
According to the Ministry of Planning and Investment’s Foreign Investment Agency, Chinese businesses had sharply increased their investment capital from $312 million in 2012 to $2.3 billion in 2013 and $7.9 billion in 2014.
Currently, some 1,346 Chinese projects are in operation in Việt Nam, with total registered capital of US$10.4 billion, making China the 9th largest investor of the 112 nations and territories investing in the country.
The Chinese projects are each worth $7.7 million on average, half the average value of foreign investment projects in Việt Nam.
Data released by the planning and investment ministry’s Foreign Investment Agency showed that Chinese businesses had been focusing on investments in processing and manufacturing industries in Việt Nam, with 916 projects worth $5.38 billion, accounting for 68 per cent of the total number of Chinese projects in Việt Nam. Other Chinese projects are being conducted in production lines, electric distribution systems, gas, water and air conditioners.
The businesses have invested in 54 of the total 63 cities and provinces nationwide, concentrating on areas with good infrastructure that are close to the Việt Nam–China border or where many Chinese live, such as in the northern provinces of Lào Cai, Quảng Ninh and Hải Phòng and in HCM City.
The southern province of Bình Thuận has attracted the highest investment capital from Chinese businesses, with more than $2 billion spread over five projects. It’s followed by southern Tây Ninh Province, with 36 projects worth $1.2 billion, and northern Hà Giang Province, with five projects worth more than $1 billion.
By the end of 2015, Việt Nam had invested in 15 projects in China, with total registered capital of more than $16 million, focusing on production and service. This included the $3 million project to construct a trade centre by Việt Trang Import-Export Joint Stock Company and the $6 million workshop for the production and trade of weighing scales.
Speaking at a Việt Nam–China business forum held in Hà Nội earlier this year, Deputy Head of the Việt Nam Chamber of Commerce and Industry’s International Relations Division Phạm Quang Thịnh said when the TPP agreements were fully approved, Việt Nam was recognised as a gateway to enter the markets of ASEAN members and the rest of the world due to its geographic advantages and dynamic economy. — VNS