return icon Vietnamnet.vn

China increases investments, Vietnam faces ‘double difficulties’

China’s investment has soared since 2018. It is now the biggest foreign investor in Vietnam in the number of projects.

Tran Hoang Ngan, a National Assembly Deputy and economist from HCMC, speaking about Chinese strengthened investments in Vietnam, noted that the US tariffs on imports from China has led to the relocation of investment capital flow from China to other countries, including Vietnam.

 

{keywords}

 

Ngan said in Tuoi Tre that Vietnam needs to apply measures to filter and select the best investment projects which utilize green technologies to ensure ‘clean’ production and support economic development.

“Vietnam must not have discriminatory treatment toward projects based on their origin, because Vietnam is integrating more deeply into the global economy. However, we have to cautiously learn the lesson from the polluting projects we licensed before,” he said.

Ngan went on to say that Vietnam needs to prioritize investors and projects which can help develop supporting industries. This means that investors with large networks which can link to Vietnamese enterprises will be highly appreciated.

Sharing the same view with Ngan, an analyst said it is necessary to have reasonable policies in the new period. Vietnam must not become a place which ‘sells licenses’, i.e where foreign investors stay temporarily to exploit ‘Vietnamese origin’. It instead must make a great contribution to the global value chain.

The analysts believe that it would be better to ask foreign investors to commit to the development of supporting industries in Vietnam.

The analysts believe that it would be better to ask foreign investors to commit to the development of supporting industries in Vietnam.

Attracting foreign capital is not the only purpose Vietnam strives for in seeking investment. The country wants the development of local industries via technology transfer. If the goal is unattainable, FDI will have not much significance.

Vietnam has been attracting foreign investment over the last 30 years, but domestic supporting industries remain weak.

Regarding the US-China trade war, Ngan said Vietnam will face ‘double difficulties’ because Vietnam exported $47.5 million worth of products to the US, but imported $65.8 billion worth of products from China in 2018.

Vietnam will have to wait for its products to be able to replace Chinese products in the US market, and this will be not easy. Meanwhile, the prolonged trade war will bring more Chinese products to Vietnam.

The ‘dangerous thing’, according to Ngan, is that the trade war will affect monetary policies. In general, countries tend to devalue their currency to protect exports, which may lead to escalation of goods and oil prices.

Kim Chi

 

What can Vietnam receive from Chinese investments?

What can Vietnam receive from Chinese investments?

Chinese investment capital in the first four months of 2019 alone amounted to 70 percent of the investment capital in the entire year 2018.

MORE NEWS

Experts warn Vietnamese banks of risks following US banks’ collapse

If bond issuers fall into insolvency, the price of bonds could fall to zero, creating a high risk for banks.

Hanoi to resume tourism services on West Lake

Hanoi may resume 12 tourism services on the West Lake including boat transportation, after six years of suspension.

Car imports from Thailand still hold largest market share in Vietnam

Thailand once again led the market in terms of value and the number of CBU (complete built unit) cars imported to Vietnam in February 2023.

Deputy PM holds bilateral meetings on sidelines of UN 2023 Water Conference

Deputy Prime Minister Tran Hong Ha had bilateral meetings with many foreign leaders on the sidelines of the UN 2023 Water Conference, which is taking place in New York from March 22-24.

Vietnam temporarily suspends import, circulation of 15 types of medicines

The Drug Administration of Vietnam (DAV) under the Ministry of Health (MoH) has just issued an official dispatch on suspending the import, distribution, circulation and use of 15 types of medicines produced by Arena Group S.A. of Romania.

EVN urged to negotiate with renewable energy investors to fix electricity price

The Ministry of Industry and Trade has urged the Electricity of Vietnam (EVN) and investors of transitional solar and wind plants to negotiate and agree to fix electricity prices before March 31.

Two arrested in 11kg drug transport from France to HCM City case

The Ho Chi Minh City Department of Public Security has just arrested two people involved in the case of transporting over 11 kilograms of narcotics and ecstasy from France to Tan Son Nhat International Airport, Vietnam.

VIETNAM NEWS HEADLINES MARCH 23/2023

Renowned Vietnamese artists collaborate on unique porcelain artworks

VIETNAM BUSINESS NEWS MARCH 23/2023

Dragon fruit export turnover reaches 47 million USD

Boxer beats Spainish rival to advance to World Championship’s semifinals

Vietnamese boxer Nguyen Thi Tam trounced Spanish rival Laura Fuertes 5-0 in the women's light flyweight category to advance to the semifinals of the IBA Women’s World Boxing Championships in New Delhi.

Ministry of Health warns of possible outbreaks of dangerous diseases

In its yesterday’s official dispatch to people's committees of provinces and cities on organizing the implementation of the 2023 epidemic prevention plan, the Ministry of Health warned of possible outbreaks of dangerous diseases.

Another enterprise issues bonds, real estate bonds increase in value

A real estate firm has successfully raised funds by issuing VND4.7 trillion worth of corporate bonds. Just days before, another real estate firm also successfully issued VND2.3 trillion worth of bonds.

Stock market violations to face stricter sanctions

The State Securities Commission (SSC) will review the Law on Securities and related decrees to complete the legal framework, and strengthen sanctions for violations to protect the legitimate rights and interests of investors.

Association calls for pilot implementation of battery-powered taxis

The Hanoi Taxi Association is urging for the pilot implementation of battery-powered cabs to reduce environmental impact and stay abreast of global trends.

Vietnam strives to eliminate malaria once and for all

The Ministry of Health has announced plans to review, amend, and supplement professional guidelines to ensure nationwide implementation and assess the National Strategy for Malaria Prevention, Control, and Elimination by 2020.
back_to_top