Vietnam foreign investment

In recent times, foreign investment in Vietnam has become increasingly attractive to outside sources, with the investment scene booming more than ever. With Vietnam's biggest investor being Japan in relation to FDI, the current interest from China could soon take this place as both Vietnam-China relations now move into the next stage.

Current Investment in Vietnam

Vietnam attracts international investment for many reasons, whether it be there unmarked potential, abundant natural resources, or relatively cheap workforce. Vietnam's government currently holds a strategy of attracting high-tech companies to the country, with the main aim of focusing on four primary sectors; agriculture, manufacturing, services, and travel.

The year 2022 saw foreign investment in Vietnam rise by up to 82%, making it the second-highest growth rate in Asia-Pacific after Malaysia. Japan led the way by being the biggest foreign investor in Vietnam, with 4,917 projects taking place, driving investment up from $11.57 billion in July 2022 to $12.8 billion by August 2022. Trade agreements such as EU-Vietnam FTA and ASEAN- Hong Kong FTA, to name a few, all help push international investment into prosperous stages and account for more opportunities than ever before.

Vietnam-China Relations

At the end of October, General Party Secretary Nguyen Phu Trong arrived in Beijing, beginning his official three-day visit to China per an invitation by his Chinese counterpart Xi Jinping. Thanks to this visit, relations between both countries will only strengthen as investment opportunities move into the following stages. This visit is Trong's first overseas trip after the sixth plenum of Vietnam's 13th Party Central Committee, with Trong also being the first foreign leader to visit China after the latter's 20th National Congress.

Political credibility and relations for both sides will continue to boom as a direct impact of such a visit, with the Vietnam-China strategic cooperation partnership continuing to stay at both tables and with positive development. Such collaboration has enabled achievements such as political, economic, and commercial cooperation, all while fighting the Covid-19 pandemic and its economic downfalls. In relation, China continues to be Vietnam's most significant commercial partner. In contrast, Vietnam continues to be China's most important retail partner in ASEAN, making it the sixth largest for China globally.

Bilateral trade turnover between both parties reached $165.9 billion in 2021, a 24.6% increase compared to 2020. China also has over 140 investment projects in Vietnam, with such total capital going $1.4 billion, ranking in 4th place among other countries investing in Vietnam.

During the discussion, both countries agreed to promote cooperation in different sectors, strengthen connectivity, and cooperate in economic trade and investment, particularly in manufacturing and agriculture. Agreements were also made on cooperation in maintaining the supply chain and production chain and putting each side's advantages to use to expand by utilizing the global market.

To conclude, Vietnam's investment scene has been ever-growing in the past years due to the country's attractive investment factors. China and Vietnam and their current relations and investment discussions can only hold profitable opportunities for both parties, showcasing their political credibility and utilization of each other's advantages. Such agreements will also help to utilize the global market while showcasing other positives to foreign investments.

Source infographics from TTXVN

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