A new wave of foreign direct investment driven by global uncertainty such as the US-China trade war and the COVID-19 pandemic is imminent in Viet Nam, and it will have a much bigger impact on the economy than previous FDI inflows, according to investment fund VinaCapital.
The Consulate General of Viet Nam in Guangxi Province, China and the Asia-Africa Market Department have warned local businesses that Guangxi is carrying out a number of measures to strengthen control of food origin and quality, according to the Ministry of Industry and Trade (MoIT).
The southern province of Dong Nai plans to build industrial parks and expand existing ones to be ready for the shift in foreign direct investment flows from China to Viet Nam because of the COVID-19 pandemic, which has hit that country hard.
The Chinese investment company and mango exporter Cam MJ Agricultural Park Co Ltd is installing a packaging machine and industrial steaming equipment for pest control at its newest facility in Kampong Speu province.
The Chinese General Administration of Customs (GAC) on June 22 granted transaction codes to two Vietnamese companies to export dairy products to China, reported the Ministry of Industry and Trade’s Department of Asia-Africa Markets.
Vietnamese products made from local materials or imported from countries other than China could escape anti-dumping sanctions.
Vietnam should take stronger measures related to origin of goods and products to avoid risks of lawsuits or being taken advantage of by other countries to evade US import tariffs.
The Ministry of Industry and Trade (MoIT) has recommended local enterprises to strictly implement regulations on food safety for farming and seafood products exported to China to avoid them getting stuck at border gates.
Currently, there is a movement of foreign direct investment (FDI) capital flow from China to other countries, especially in the ASEAN region.
The outbreak of the coronavirus has had negative effects on global supply chains in the world’s automobile industry. Many factories run by Toyota, Nissan, Honda, Hyundai, KIA, Ford, and General Motors around the world have had their doors closed for weeks due to interruptions in the supply of automotive part-components from China, which is oft-recognised as the factory of the world.