Chinese investors forging ahead in Vietnam
Chinese investors forging ahead in Vietnam
As of now, Chinese investors, including those from Mainland China, Hong Kong, Taiwan, and Macau, have invested $58.5 billion in 5,011 projects in Vietnam, according to the Ministry of Planning and Investment’s Foreign Investment Agency’s statistics published on May 4.
In the first four months of 2016 alone, Vietnam lured in $1.39 billion in 209 projects by Chinese investors, including $803.2 million to 149 newly-registered projects and $595.3 million in added capital to 60 existing projects. (See table below)
Chinese investors poured the largest amount of capital in the manufacturing and processing sector, focusing on the manufacturing and distribution of steel, electricity, and air conditioners. The runner up is the real estate sector.
Most projects invested by Chinese projects are directly invested either in a wholly invested capital projects or in the build-operate-transfer (BOT), build-transfer (BT), and build-transfer-operate (BTO) forms.
Chinese enterprises have invested in 54 of all 63 cities and provinces nationwide, concentrating on the provinces of Lao Cai, Dong Nai, Binh Duong, Quang Ninh, Haiphong, and Ho Chi Minh City.
Notable projects include Hung Nghiep Formosa Ha Tinh Steel Limited Company in the central province of Ha Tinh. The total investment in first phase of the project was $10.5 billion. As of October 2015, the investor was planning to increase the capital to $28.5 billion. Upon reaching completion, Hung Nghiep Formosa is going to be the biggest steel production complex in Southeast Asia.
The second is Vinh Tan 1 Thermal Power Project in Binh Thuan province. The plant will be constructed over four years under the BOT model with the investment capital of $2 billion.
The third is Hung Nghiep Formosa Dong Nai Textile Limited Company in Nhon Trach industrial park, Dong Nai province. The project aims to build textile, polyester, spinning, yarn, and fiber facilities, as well as a power plant with an investment capital of $1 billion.
The fourth is Texhong Group's textile, polyester, spinning, and fibre facilities in the northern provinces, altogether worth over $1 billion.
Other large Chinese projects include the Yuelun tire project worth $400 million in Tay Ninh province as well as the Xingaoshen rubber processing plant and the Vietnam-China Mining and Metallurgy project in the northern province of Lao Cai, both worth $337.5 million.
