return icon Vietnamnet.vn

How can Chinese capital be used in the most effective way?

China’s capital flow to Vietnam has grown slowly, but that is changing rapidly, analysts say.
VietNamNet Bridge - China’s capital flow to Vietnam has grown slowly, but that is changing rapidly, analysts say.


{keywords}

China has pledged 1,883 projects in Vietnam




According to the Foreign Investment Agency (FIA), an arm of the Ministry of Planning and Investment (MPI), by the end of March 2018, China had pledged 1,883 investment projects in Vietnam, totaling $12.4 billion, ranking seventh among 126 countries and territories investing in Vietnam.

In March 2018, 76 new projects with total capital of $200 million were licensed, including 11 expansion projects. If counting $120 million worth of Chinese capital contribution into Vietnamese enterprises, the total newly registered capital from China was $338 million in the month.

The new projects included the expansion project developed by Vina Cell Technology. The investor decided to pour more than $100 million into its solar panel factory in Bac Giang after two years of operation.

Despite large-scale projects worth hundreds of millions of dollars and the high number of capital contribution deals (220 in March), the Chinese capital inflow to Vietnam last March was still lower than that of the same period last year, when China, after making big leaps, became the second largest foreign investor in Vietnam.

Despite large-scale projects worth hundreds of millions of dollars and the high number of capital contribution deals (220 in March), the Chinese capital inflow to Vietnam last March was still lower than that of the same period last year, when China, after making big leaps, became the second largest foreign investor in Vietnam.

At that time, China stepped up investments in Vietnam with the projects in fiber and plastics manufacturing. 

“This is really a big surprise,” said Tran Dinh Thien, head of the Vietnam Economics Institute, adding that China was never in the top five foreign investors in the years before.

However, analysts believe that China will become one of the leading investors in Vietnam in the long term.

China has poured big money into huge projects in the Philippines, Malaysia and Thailand. 

In theory, the ODA (official development assistance) loans from the World Bank ended in July 2017, while ODA preferential loans from ADB (Asian Development Bank) will terminate in January 2019.

Some experts pointed out that though Chinese investment capital does not bring benefits in terms of the environment and technology, Vietnam cannot refuse the important capital source.

The best way to deal with Chinese capital is to take full advantage of the capital for development and minimize the negative effects.

Experts said Vietnam should learn from the Finland-Russia relationship. Finland receives a large amount of capital from Russia, but it uses the capital selectively, focusing on technology and economic development.


RELATED NEWS

FDI in 2017: Japan exceeds South Korea, China emerges

FDI to Vietnam is mostly from Asia, with South Korea ranked first


M. Ha

MORE NEWS

Hanoi proceeds with park revitalization program

The implementation of Hanoi leaders’ promise to revive parks has begun: admission to Thong Nhat Park is now free after the removal of the fence, and Con Coc Flower Garden has a new look. However, there are still many things that need to be done.

Vietnamese farmers on board the ‘digital agriculture train’

In the digital era, next-generation farmers can fertilize and water their fields in Binh Phuoc from afar, even in a different country.

Vietnam forecast to become second-largest economy in Southeast Asia by 2036

2023 is predicted to be the year of many challenges for the Vietnamese economy due to the gloomy outlook of the global economy and multiple crises.

Prenn Pass leading to Dalat to be closed for expansion

Vehicles will be banned from using the seven-kilometer-long Prenn Pass to travel to Dalat City as work on the pass upgrade and widening project begins on February 6.

Coach Park Hang-seo to hold event thanking fans for their support

The event will be held at Athena Room 2, Hanoi Grand Plaza Hotel, from 6pm to 8.30pm on February 2.

Hanoians queue at 3am to buy gold on the God of Wealth Day

To buy gold for luck on the God of Wealth Day (the 10th day of the lunar year - January 31), many Hanoians queued in front of gold shops on Tran Nhan Tong and Cau Giay streets from 3 am.

10,800 new enterprises established in Vietnam in January 2023

Vietnam had 10,800 newly established enterprises in January, an increase of 0.7% over the previous month and a fall of 16.6% over the same period last year.

Hai Phong hosts 700-year-old wrestling festival

As part of the Lunar New Year celebration, known locally as Tet, local people of Vinh Khe village in An Duong district of Hai Phong hold a wrestling festival on the seventh day of the first lunar month.

International visitors to Vietnam increased sharply in January 2023

International visitors to Vietnam in January 2023 reached over 871,000 arrivals, an increase of 23.2 percent compared to December 2022 and 44.2 times higher than last year.

Hanoi sees strong increase of apartment prices

Prices for apartments in Hanoi tend to increase as supply becomes short, according to the Vietnam Association of Realtors (VARS).

Tennis: Vietnam against Indonesia for Davis Cup World Group II berth

According to the Vietnam Tennis Federation (VTF), Vietnam will play Indonesia in the 2023 Davis Cup World Group II Play-offs on February 4-5 at the Hanaka Paris Ocean Park in the northern province of Bac Ninh.

Nearly 100 petrol stations shut down during Tet holiday

Nearly 100 petrol stations nationwide were closed during the Tet Lunar New Year holiday, claiming they had run out of stock and lacked employees.

Health ministry asks for strengthening COVID-19 diagnosis and treatment

The Ministry of Health has ordered local health departments to strengthen diagnosis and treatment of COVID-19 in the context of new variant emergence.

Da Lat hot air balloon festival slated for late April

Local people and tourists will have the chance to enjoy famous tourist sites throughout Da Lat city in the Central Highland province of Lam Dong from above during hot air balloon trips which will run from April 27 to May 3.

Buon Ma Thuot Coffee Festival scheduled to kick off in March

The eighth edition of the Buon Ma Thuot Coffee Festival is set to be held in the Central Highlands province of Dak Lak from March 10 to March 14, as announced on January 30 by the provincial People’s Committee.
back_to_top