M&A deals increase Chinese investment in Vietnam
VOV.VN - Chinese businesses tend to make their stronger presence in Vietnam through mergers and acquisitions (M&A) deals, especially in real estate.
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Chen Dehai, Chinese Consul General in Ho Chi Minh City, said at a recent meeting to promote investment opportunities in the city that Chinese investment into Vietnam has surged high since 2016. Businesses have poured much capital in different projects in thermal and wind power, solar energy pin, garment, and tyre production, even up to US$2 billion in one project.
According to the Foreign Investment Agency under the Ministry of Planning and Investment, China ranked fourth among foreign investors with the highest amount of investment capital pledged for Vietnam last year.
2017 also witnessed many M&A deals between Chinese businesses and Vietnamese partners in real estate.
Chinese businesses have not only focused on M&A deals and real estate but also increased their investment in industrial production. They tend to invest in garment, fibre and footwear to take advantage of tax incentives when exporting to the EU and US as Vietnam have signed free trade agreements with these countries.
A clear proof for the move is that the Bank of China, Ho Chi Minh City branch and China’s Shenzhen Stock Exchange signed a cooperation deal in December 2017 to further attract Chinese investment into Vietnam.
