Chinese investment capital shifts to green energy, electronics, automobiles: official

By Lan Do
Thu, December 19, 2024 | 4:30 pm GMT+7

Chinese direct investment in Vietnam has traditionally focused on the manufacturing sector and it is now transitioning toward green energy, electronics, and automobiles.

Tran Hai Yen, director of the Southern Investment Promotion Center under the Ministry of Planning and Investment, made the statement at the Ho Chi Minh City and Guangdong-Hong Kong-Macao Greater Bay Area Investment & Business Forum in HCMC on Tuesday.

She noted that the southern key economic zone, centered on HCMC and neighboring provinces such as Dong Nai, Binh Duong, and Ba Ria-Vung Tau, continues to attract foreign investors. This region benefits from its strategic location, developed transportation infrastructure, and abundant labor supply, drawing FDI in industrial production, high technology, logistics, and renewable energy.

Previously, Chinese FDI in Vietnam was concentrated on manufacturing industries, including household wooden furniture, leather shoes, and garments. However, the focus is now shifting toward high-tech industries, industrial production components, electronics, automobiles, and green energy. HCMC is the leading destination for Chinese investment, hosting 731 projects, according to Yen.

Tran Hai Yen, director of the Southern Investment Promotion Center under the Ministry of Planning and Investment, speaks at the Ho Chi Minh City and Guangdong-Hong Kong-Macao Greater Bay Area Investment & Business Forum in HCMC, December 17, 2024. Photo courtesy of ITPC.

Tran Hai Yen, director of the Southern Investment Promotion Center under the Ministry of Planning and Investment, speaks at the Ho Chi Minh City and Guangdong-Hong Kong-Macao Greater Bay Area Investment & Business Forum in HCMC, December 17, 2024. Photo courtesy of ITPC.

Vietnam remains China’s largest trading partner within ASEAN and its fourth-largest trading partner globally, following the U.S, Japan, and South Korea. China is Vietnam’s largest import market and second-largest export market, official data shows.

In terms of investment, China has emerged as a leading partner, with 540 new projects in the first seven months of 2024, totaling $1.22 billion. These projects represent 29.7% of all new investments nationwide.

“HCMC is a special urban area with a GDP growth rate of 7.17% in 2024, contributing 27% to the national budget. With a population of nearly 10 million and a growing middle class, the city offers a significant and potential market for foreign enterprises, including Chinese businesses,” said Vo Van Hoan, Vice Chairman of the HCMC People’s Committee.

The Vietnamese government and local authorities have implemented preferential investment policies, improved the business environment, and supported enterprises, boosting confidence among international investors. The rise in both the number of projects and FDI capital has become a significant driver of sustainable economic development in the region.

Jonathan Choi, chairman of Sunwah Group and the Chinese Chamber of Commerce in Hong Kong, made these remarks based on decades of investment experience in Vietnam. Sunwah Group has its headquarters in HCMC, which Choi described as Vietnam’s most dynamic city.

Other members of the Guangdong-Hong Kong-Macao Greater Bay Area Entrepreneurs Alliance have also invested in Vietnam and praised its economic growth in recent years. A delegation of 60 business leaders and experts from the GBA recently visited Vietnam to explore its business environment and seek new cooperation opportunities, highlighting the country’s appeal to investors.

Jesse Choi, the GBA Alliance’s representative in Vietnam, affirmed that the organization not only seeks business opportunities but also leverages its strengths in technology, finance, and innovation to support Vietnamese enterprises in accessing the Chinese market and forming long-term partnerships.

Moving forward, the GBA Alliance plans to host investment and trade promotion forums, offering Vietnamese enterprises insights into market trends, policies, and opportunities to enhance bilateral investments.

These initiatives aim to connect Vietnamese businesses with strategic partners and foster collaboration in digital transformation, the green economy, and smart urban development, ultimately expanding their global influence.

Comments (0)
  • Read More
Vietnam’s Ministries of Foreign Affairs, Natural Resources & Environment, and Home Affairs have new heads

Vietnam’s Ministries of Foreign Affairs, Natural Resources & Environment, and Home Affairs have new heads

Le Hoai Trung was appointed on Saturday as Minister of Foreign Affairs, Tran Duc Thang as Minister of Natural Resources and Environment, and Do Thanh Binh as Minister of Home Affairs.

Politics - Sun, October 26, 2025 | 11:22 am GMT+7

Intel eyes shifting more production to Vietnam   

Intel eyes shifting more production to Vietnam  

U.S. chipmaker Intel plans to shift its assembly, packaging, and testing operations from its Costa Rica facility to potential markets such as Vietnam, said Kenneth Tse, general director of Intel Products Vietnam.

Industries - Sun, October 26, 2025 | 9:05 am GMT+7

Vietnam's securities regulator seeks to expand institutional market participation

Vietnam's securities regulator seeks to expand institutional market participation

The State Securities Commission of Vietnam (SSC) is preparing a comprehensive package of measures to allure more institutional investors to the stock market, which currently sees up to 85-90% of total transaction value come from retail investors.

Finance - Sun, October 26, 2025 | 8:00 am GMT+7

VAFIE, Nghe An province tax authority help businesses update new tax policies

VAFIE, Nghe An province tax authority help businesses update new tax policies

The Vietnam's Association of Foreign Invested Enterprises (VAFIE) and the Nghe An province Tax Department on Friday co-hosted a tax policy workshop titled “New tax policies impacting business operations and accounting standards under IFRS.”

Companies - Sat, October 25, 2025 | 7:28 pm GMT+7

Vietnam parliament okays appointing 2 new Deputy Prime Ministers

Vietnam parliament okays appointing 2 new Deputy Prime Ministers

Vietnam's legislature has approved Prime Minister Pham Minh Chinh's proposal to appoint Ho Quoc Dung, former Party chief of Gia Lai province, as Deputy Prime Minister, while Pham Thi Thanh Tra, a Party Central Committee member, became the country's first female Deputy Prime Minister.

Politics - Sat, October 25, 2025 | 6:32 pm GMT+7

Foxconn unit ShunYun injects extra $15 mln into northern Vietnam subsidiary

Foxconn unit ShunYun injects extra $15 mln into northern Vietnam subsidiary

ShunYun Technology Co., a subsidiary of Taiwanese electronics giant Foxconn, has announced an additional $15 million investment into its Vietnamese arm in the northern province of Bac Ninh, according to a filing with the Taiwan Stock Exchange.

Industries - Sat, October 25, 2025 | 4:57 pm GMT+7

DNP Water, Samsung E&A launch $69 mln inter-regional water project in Vietnam’s Mekong Delta

DNP Water, Samsung E&A launch $69 mln inter-regional water project in Vietnam’s Mekong Delta

A subsidiary of Vietnam’s water supplier DNP Water and South Korea’s Samsung E&A have broken ground on a VND1.82 trillion ($69.2 million) inter-regional raw water infrastructure project in the Mekong Delta, marking a major step toward improving the region’s water security.

Infrastructure - Sat, October 25, 2025 | 4:50 pm GMT+7

Vietnam’s bond market heats up as major corporates return

Vietnam’s bond market heats up as major corporates return

Vietnam’s corporate bond market is regaining momentum as large conglomerates join banks and brokerages in successful issuances.

Finance - Sat, October 25, 2025 | 9:33 am GMT+7

Decentralization and the potential for multi-center urban development in HCMC’s satellite areas

Decentralization and the potential for multi-center urban development in HCMC’s satellite areas

If managed well, urban decentralization and multi-center development can ease housing pressures in central HCMC and usher in a more balanced growth phase for the southern region's residential market, write Avison Young Vietnam analysts.

Real Estate - Sat, October 25, 2025 | 8:00 am GMT+7

Chinese firm proposes its 3rd waste-to-power plant in Vietnam

Chinese firm proposes its 3rd waste-to-power plant in Vietnam

China’s EverBright Environment has proposed investing about VND1.6 trillion ($60.82 million) in a waste-to-energy plant in the central province of Quang Tri.

Energy - Fri, October 24, 2025 | 8:45 pm GMT+7

Mega golf-commercial-urban complex proposed for southern Vietnam city Can Tho

Mega golf-commercial-urban complex proposed for southern Vietnam city Can Tho

Vietnam Royal Investment Group JSC has proposed developing a 766-hectare golf-service-commercial-urban complex in the Mekong Delta city of Can Tho.

Real Estate - Fri, October 24, 2025 | 4:31 pm GMT+7

Sumitomo makes first hydropower investment in Vietnam

Sumitomo makes first hydropower investment in Vietnam

Sumitomo Corporation has made its first hydropower investment in Vietnam by acquiring a 49% stake in Mekong Electric Power Engineering and Development JSC which owns the 48 MW Dak Di 1 & 2 run-of-river hydropower project in Danang city.

Energy - Fri, October 24, 2025 | 3:42 pm GMT+7

Investors urge Vietnam to fix legal hurdles to LNG power projects

Investors urge Vietnam to fix legal hurdles to LNG power projects

A group of investors in Vietnam’s gas-fired power sector has urged the country's parliament to address regulatory gaps that have stalled multi-billion-dollar LNG and domestic gas-fueled power projects, warning that delays could derail the country’s energy transition targets.

Energy - Fri, October 24, 2025 | 2:12 pm GMT+7

Central Vietnam province Gia Lai okays 3 large-scale wind power projects

Central Vietnam province Gia Lai okays 3 large-scale wind power projects

Gia Lai province has granted in-principle approvals to three large-scale wind power projects with total registered capital mounting to VND19.35 trillion ($734.9 million).

Energy - Fri, October 24, 2025 | 12:01 pm GMT+7

HCMC pushes for early investment in Thu Thiem-Long Thanh railway project

HCMC pushes for early investment in Thu Thiem-Long Thanh railway project

The Ho Chi Minh City People’s Committee has emphasized the need for early investment and operation of a railway connecting Thu Thiem in the metropolis with Long Thanh International Airport in neighboring Dong Nai province.

Infrastructure - Fri, October 24, 2025 | 10:49 am GMT+7

Vietnam to let foreign investors place orders directly via global brokers

Vietnam to let foreign investors place orders directly via global brokers

Vietnam plans to allow foreign investors to place orders directly through global brokerage firms, a move aimed at easing access to its stock market after a long-awaited upgrade to "secondary emerging" market status, a top regulator said.

Finance - Fri, October 24, 2025 | 8:28 am GMT+7