The US-China trade war and the Covid-19 pandemic have accelerated the investment shift and relocation of supply chains from China to Vietnam.

Long Hau IZ

Despite Covid-19, Vietnam still attracted $12.33 billion worth of FDI in the first four months of the year, equal to 84.5 percent of the same period last year. $5.15 billion worth of capital was disbursed during that time, equal to 90.4 percent.

According to Dinh Trong Thinh from the Finance Academy, relocating factories from China to Vietnam will bring great opportunities to the industrial property sector (industrial land, ready-built workshops, warehouses and logistics services)

Vietnam needs to prepare clean industrial land, infrastructure and storehouse networks to serve goods storage and delivery/receiving activities. If Vietnamese enterprises cannot do this quickly, Chinese businesses will do this and receive foreign investment here.

Once Chinese enterprises acquire IZs and become distributors and invite foreign investors to their IZs, they will have benefits in jobs, land leasing and others which could have belonged to Vietnamese enterprises.

Once Chinese enterprises acquire IZs and become distributors and invite foreign investors to their IZs, they will have benefits in jobs, land leasing and others which could have belonged to Vietnamese enterprises.

“Foreign investors have to cooperate with Chinese investors to obtain industrial land to set up factories. Chinese enterprises may exploit this to counterfeit their goods origin,” he said.

In principle, when foreign investors head for Vietnam, the land leasing fee will become more expensive, which benefits Vietnam. But if this occurs, Chinese businesses can get the benefits.

When Chinese investors acquire industrial properties, they will have to pay money, but Vietnam actually wants foreign investors that will cooperate with Vietnamese enterprises, which would help develop industries, especially supporting industries.

“When foreign investors come to Vietnam, they will need screws, materials and components. Vietnamese enterprises will provide these products to them. And this will help develop supporting industries. This is what Vietnam strives for,” he explained.

But if Chinese enterprises can lure foreign investors, they will provide materials and components to the investors, not Vietnamese enterprises.

“As such, they will skim the fattest profit,” he said.

Thinh mentioned the statement of the representative of the Ministry of National Defence as saying before the National Assembly that many Chinese own land plots in important positions in some localities and that strict control was needed over foreign ownership, while ensuring no discriminatory treatment.

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