By APD writer Alice

Hanoi, June 17 (APD) – Chinese companies are increasing investment in Vietnam, with an amount making up 42.5 percent of the total foreign investment in the Southeast Asian nation.

According to data released by the Foreign Investment Agency (FIA) under the Vietnamese Ministry of Planning and Investment, foreign investment in the country hit a four-year high of 16.7 billion USD in the first five months of this year, up 69 percent compared to the same period in 2018.

If including Taiwan’s investment, Chinese investors poured nearly 7.7 billion USD in Vietnam during the period, surpassing the Republic of Korea, Singapore, and Japan to become the biggest foreign investor.

In its recent report, the FIA says the trade tensions between China and the United States has a significant impact on the shift of Chinese investment. Investments from mainland China and Hong Kong increased from 3.7 billion USD in 2017 to 5.8 billion USD in 2018 and 7.1 billion USD in the last five months.

Previously, Chinese investors were mainly small businesses with out-dated technology but now many large corporations have funded large-scale projects.

Five of the seven biggest foreign-invested projects in the last five months came from Chinese backers, including the ACRT’s all steel Radian tire manufacturing project worth 280 million USD, a 260 million USD electronic equipment and multimedia audio products manufacturing project invested by Hong Kong-based Goertek Co Ltd, and the 214.4 million USD tires, rubber manufacturing project invested by Guizhou Advance Type Investment Co Ltd.

Regarding the rapid increase in Chinese investment in the last five months, Nguyen Mại, Chairman of the Association of Foreign Invested Enterprises, said Hong Kong topped foreign investors in Vietnam with 5.08 billion USD but three quarters of the amount was spent on buying shares of local companies, of which 3.8 billion USD was for the purchase of Vietnam Beverage Co Ltd in Saigon Beer-Alcohol-Beverage Corp (Sabeco).

He said China was looking for investment opportunities but was not rushing into purchases.

At a recent press conference in Hanoi this month, Commercial Counsellor of the Chinese Embassy in Vietnam Hu Suo Jin said Chinese investment had increased since 2017 and the value of this year would be higher than last.

(ASIA PACIFIC DAILY)