| The economic and trade relations between Vietnam and China are becoming increasingly close
The International Business Daily of the Ministry of Commerce of China recently published an article titled "The influx of foreign investment into the Vietnamese economy has performed outstandingly in the third quarter, and the joint statement between China and Vietnam promotes the alignment of development strategies between the two countries", highly praising Vietnam's achievements in attracting foreign investment and economic development, as well as the prospects for cooperation between China and Vietnam.
The article points out that Vietnam's third season GDP Annual growth of 7.4%, the strongest quarterly performance in two years. The growth of the processing and manufacturing industry is particularly prominent, with a growth rate of 11.41% becoming the highest growth rate in the same period in nearly 6 years. Due to factors such as global trade frictions and intensified geopolitical conflicts, more and more multinational corporations are choosing to settle in Vietnam.
According to the Foreign Investment Bureau of the Ministry of Planning and Investment of Vietnam, in the first nine months of 2024, Vietnam's newly approved projects, capital increase projects, and equity mergers and acquisitions projects absorbed more than 24.78 billion US dollars in foreign investment, an increase of 11.6% compared to last year. Actual funds received amounted to 17.3 billion US dollars, with an annual increase of 8.9%. Foreign investors have invested in 18 out of 21 industries in Vietnam's national economy. Among them, the processing and manufacturing industry absorbed the most foreign investment of over 15.64 billion US dollars, accounting for 63.1% of Vietnam's total foreign investment, a slight decrease of 0.4% year-on-year; Next is the real estate business, with a value of 4.38 billion US dollars, accounting for approximately 17.7%, which is over 2.2 times higher than the same period last year; The electricity production and sales, as well as wholesale and retail industries, ranked third and fourth respectively, absorbing foreign investment of 1.12 billion US dollars and 920 million US dollars.
Among them, the most active ones are undoubtedly investments from Chinese companies. According to statistics from the Chinese Ministry of Commerce, in recent years, the total amount of China's overseas direct investment (ODI) in Vietnam has been continuously increasing. In 2023, Chinese companies' direct investment in Vietnam will reach 5 billion US dollars, an annual increase of 30%. This data not only reflects the confidence of Chinese companies in the Vietnamese market, but also demonstrates the increasingly close economic and trade relations between the two countries. Moreover, manufacturing is one of the main areas for Chinese enterprises to invest in Vietnam, involving multiple industries such as textiles, clothing, electronic products, and mechanical equipment. This not only drives the development of Vietnam's manufacturing industry, but also promotes the deep integration of the two countries' industrial chains. This year, many Chinese companies that did not invest in Vietnam in previous years have also moved south, especially those with a large proportion of exports to the US market.
According to Wang Li, founder of Vietnam's first stop, "As far as we know, more than 300 Chinese listed companies have set up production bases in Vietnam, and there are more than 3000 listed companies in China's manufacturing industry”。
According to statistics from Vietnam's Ministry of Planning and Investment, Chinese investors registered an investment of 4.5 billion US dollars in Vietnam in 2023, an annual increase of nearly 80%. In the first seven months of 2024, China's registered investment in Vietnam was 1.65 billion US dollars, a slight decrease from the same period last year. In terms of investment capital, China ranks fourth among countries and regions investing in Vietnam. In terms of project quantity, China is the leading partner in the number of newly approved projects (accounting for 29.7%).
Vietnam's Minister of Planning and Investment, Nguyen Chi Dung, stated that the most remarkable aspect is the significant improvement in the quality of Chinese investment in Vietnam. In the past, China's investment in Vietnam was often concentrated in manufacturing and processing fields such as textiles, clothing, and footwear; Nowadays, Chinese capital is shifting towards high-tech, power electronics and other fields. Many international scale Chinese enterprises have started investing in Vietnam's power electronics, processing and manufacturing, infrastructure construction, renewable energy, electric vehicles and other fields. （完）
