VAFIE introduces investment opportunities to Chinese delegation

The Vietnam’s Association of Foreign Invested Enterprises (VAFIE) hosted a business delegation from China’s Chongqing city Thursday and provided information about investment opportunities.

Welcoming the delegation, VAFIE chairman Nguyen Mai highlighted the robust growth in ties between Vietnam and China. He noted that as many as 36 agreements were signed when Chinese President Xi Jinping visited Vietnam in December 2023.

Mai cited data from the Ministry of Planning and Investment to show that as of February 20 this year, China was the sixth-biggest foreign investor in Vietnam with 4,376 projects and a total registered capital of $27.91 billion.

Mai also emphasized the advantages and supporting policies for foreign investments that Vietnam offered. With about 340 industrial parks across the country, Vietnam offered a lot of land with advanced infrastructure at leasing prices half of Shanghai.

He advised that investments located outside industrial parks can get complicated due to land clearance procedures.

Vietnam also provides other incentives for foreign investments including exemption and reduction of corporate income tax, Mai said, adding that as the country prepared to implement the Global Minimum Tax (GMT), authorities were drafting various non-tax support for businesses.

Another advantage Vietnam offered was affordable workers’ wages, equivalent to 50-60% of China.

At the event organized to welcome the delegation, the VAFIE chairman answered queries and made recommendations to the visitors in several sectors/activities including steel, chemicals, commerce, food, fruits, coffee and energy.

He noted that some industries in Vietnam were not seeking further investments because of a supply glut. He cited the examples of the cement industry and the hydropower sector, which has nearly reached its full potential while having serious environmental impacts.