Firms from China’s Yunnan province are interested in investing in Vietnam, especially in crystalline silicon (a semiconductor material), minerals and solar energy, said a provincial official.
At a Wednesday meeting in Hanoi, the official with Yunnan’s Department of Industry and Information Technology proposed Vietnam's Association of Foreign Invested Enterprises (VAFIE) facilitate the prospective investments.
Yunnan is among the top five localities of China in terms of green and clean development, with firms deploying world-class technologies in solar energy and crystalline silicon investments, the official said.
Some businesses have already made successful investments in Vietnam, he noted.
VAFIE chairman Prof. Nguyen Mai said the meeting was significant as it took place just a week after the Vietnam visit by Chinese Party General Secretary and President Xi Jinping.
During Xi Jinping’s visit, the two countries signed 36 agreements, including four related to Yunnan province, indicating the province’s important role in bilateral cooperation, Mai said.
He said Vietnam presented massive advantages to foreign investors based on its participation in free trade agreements. In particular, products with inputs from Vietnam or imported into Vietnam are classified as Vietnamese goods, which are subject to low or no taxes for export to other countries, he added.
With regard to the semiconductor industry, Vietnam has strong rare earth reserves of 22 million tons, the second-highest in the world behind China with 44 million tons, Mai said.
So far, over 10 major semiconductor businesses in the world have signed agreements to invest in Vietnam. With its modern technologies, China can meet Vietnam’s investment requirements in the industry.
His association’s main task is investment promotion and as such, it is willing to cooperate with Yunnan authorities in facilitating investments from the Chinese province, Mai said.