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

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.

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.