In January, Chinese firms contributed US$489.87 million in foreign direct investment (FDI) in Vietnam across 85 new projects, according to data from Vietnam’s Ministry of Planning and Investment. This represents a decline of US$358.85 million compared to December, which saw US$848.72 million in registered capital with 96 new projects.
Chinese investments accounted for 11.30 percent of total FDI in January, down from 11.86 percent in December.
China has been one of the largest sources of foreign direct investment (FDI) in Vietnam, driven by strong economic ties between the two countries and the proximity of their economies. Chinese FDI in Vietnam spans a wide range of sectors, including manufacturing, real estate, trade, retail, and energy. The robust trade relationship, coupled with China’s “Belt and Road Initiative” (BRI), has also encouraged Chinese companies to invest in infrastructure projects and expand their presence in Vietnam.
The manufacturing sector is a key area of Chinese investment, with a particular focus on textiles, electronics, and consumer goods. Many Chinese companies have set up production facilities in Vietnam to take advantage of lower labor costs, a skilled workforce, and the country’s expanding role in global supply chains. Vietnam’s growing role as a manufacturing hub in Southeast Asia has made it an attractive destination for Chinese companies looking to relocate or expand their production operations. Chinese investment in electronics and high-tech industries has been on the rise, with companies establishing factories to produce products for both the domestic and export markets.
Real estate is another significant area for Chinese FDI, particularly in residential, commercial, and tourism-related developments in major urban centres such as Ho Chi Minh City and Hanoi. Chinese developers and investors have been involved in large-scale projects that cater to both the growing local market and the increasing number of international visitors.
While Chinese FDI has been a key driver of Vietnam’s economic growth, the sector faces challenges, including concerns over environmental impacts, regulatory complexities, and competition with other foreign investors. Nevertheless, the Chinese government’s continued support for investment through trade agreements and initiatives like the Regional Comprehensive Economic Partnership (RCEP) suggests that Chinese FDI will continue to be an important part of Vietnam’s development strategy. With growing investments in green technologies, infrastructure, and high-tech industries, Chinese FDI in Vietnam is likely to increase, further enhancing bilateral economic cooperation.
See also: List of Vietnam’s Free Trade Agreements