Chinese investment in Vietnam rises steeply

Combined Chinese and Vietnamese efforts have ensured their economic cooperation is a highlight of both countries’ trade and investment relations. China is now Vietnam’s biggest economic partner after nine consecutive years of reliably rapid growth.

Two-way trade turnover reached US$41 billion in 2012, up 25 percent on a year earlier. The figure had jumped to US$19 billion by April this year, an improvement of 37 percent on 2012.

In a recent interview with a Voice of Vietnam (VOV) reporter on the threshold of early September’s China-ASEAN Expo (CAEXPO), the Chinese Embassy’s Economic and Commercial Counsellor Xu Qisong stressed the results of the two nations’ economic cooperation are particularly outstanding considering the gloomy global economic context.

The Chinese Embassy’s Economic and Commercial Counsellor Xu Qisong.

Reporter: Both nations’ businesses have expanded their investments in addition to focusing on trade links. What is your assessment of Chinese investment in Vietnam?

Xu Qisong: China’s investment in Vietnam is developing rapidly, totalling US$5 billion contributed by around 900 investors.

In 2012, the number of new Chinese investors entering Vietnam rose 147 percent. Their major investments are focused on the Hai Phong-Tham Quyen trade area and southern Tien Giang province’s Long Giang industrial park.

I believe even more Chinese investors will be drawn to those areas after the parks’ construction is completed. I hope that the Vietnamese Government’s central agencies and local authorities will create the best possible conditions for Chinese businesses to contribute to the success of these areas.

Chinese businesses are also currently negotiating with Vietnamese counterparts on investment projects that will provide a springboard for raising Chinese investment to a higher level in the near future.

Reporter: What do you think of the Chinese businesses conducting investment in Vietnam?

Xu Qisong: Chinese enterprises with Vietnamese presences are mindful of social obligations and sharing the benefits of their achievements with the localities in which they are based.

Chinese investors have generated employment for thousands of local people, donated to learning promotion funds, built roads and other infrastructure, and supported natural disaster prevention and control.

Many smaller Chinese enterprises have actively integrated themselves into their local communities, equating the health of their businesses with the health of their Vietnamese bases of operation.  They have directly or indirectly contributed to Vietnam’s socio-economic development.

Reporter: How would you assess the potential for additional investment cooperation in Vietnam?

Xu Qisong: Vietnam’s rapid economic development creates an environment conducive to economic cooperation between the two countries.

Long Giang Industrial Park symbolizes Vietnam-China investment cooperation

Vietnam’s advantageous geographical position assists it with bridging China and ASEAN. Vietnam also boasts rich agricultural land.

People of working age—15 or above—account for 15 percent of Vietnam’s national population. These demographic, geographic, and environmental advantages will facilitate sustainable economic and trade links between Vietnamese and Chinese businesses.

Vietnam’s recently adopted open-door policies have also stimulated strong, stable economic development.

From 2001–2010, the country’s GDP grew at an annual rate of 7 percent. It rose by more than 5 percent, even in the midst of 2012’s global financial crisis.

Last year, the country’s rice exports hit 7 million tonnes and it led the world in pepper, coffee, and cashew export volumes.

China and Vietnam share mountains and rivers and cultural and historical similarities that can also be leveraged to fuel mutual socio-economic development.

Reporter: What should both countries do to increase the efficiency of investment and trade links?

Xu Qisong: The two governments and business communities have recorded tremendous achievements in bilateral economic cooperation.

The April 2013 signing of a Memorandum of Understanding on farm produce trade cooperation is intended to secure the sector a future of healthy development and encourage the upscaling of business operations.

In May 2013, China and Vietnam also formally approved a list of key cooperation projects grouped under a five-year economic and trade development strategy.

I believe that these projects will open up a wealth of opportunities for the two countries’ businesses to improve the quality and efficiency of their cooperation.

Reporter: Thank you very much.