return icon Vietnamnet.vn

Is Vietnam really benefiting from US-China trade war?

VietNamNet Bridge - Many foreign enterprises in China have visited Vietnam to learn about the investment opportunities here, but most have not made decisions to relocate. 

VietNamNet Bridge - Many foreign enterprises in China have visited Vietnam to learn about the investment opportunities here, but most have not made decisions to relocate. 


{keywords}

Vietnam attracts foreign investors




A senior executive of an IZ development company in Binh Duong province confirmed that the demand from foreign investors for land lease in the IZ has increased. But he was not sure if this was due to the redirection of FDI out of China to Vietnam.

Soon after the US-China trade war began, the number of foreign investors  asking about land and workshop leases increased sharply. They were mostly from Japan, South Korea and the US, and some from Europe.

“However, investors need more time to think about production relocation,” he said.

Vietnam is attractive to Japanese investors, however, a trend of Japanese enterprises leaving China for Vietnam to avoid the US-China trade war has not occurred.

Tran Duy Vu, deputy CEO of Kizuna IZ Infrastructure Development in Long An province, said an enterprise mentioned the plan to expand production in Kizuna and scale down production in China. However, the expansion plan in Vietnam still has not been implemented.

Takimoto Koji from JETRO HCMC said Japanese investors, who are cautious in doing business, need a lot of time before making decisions.

Vietnam is attractive to Japanese investors, however, a trend of Japanese enterprises leaving China for Vietnam to avoid the US-China trade war has not occurred.

Vu from Kizuna said foreign invested enterprises in China will relocate their production bases or expand their investments in other countries only if they export products directly to the US and bear additional high taxes. At this time, foreign enterprises are still listening to the news and have not made decisions.

Vu said that China, with more than 1 billion consumers, is too attractive for manufacturers to give it up. China is also the world’s production base which provides products for supporting industries. If they leave China, foreign investors would have to seek other supply sources, which may lead to higher production costs.

CNBC, in an article about the US-China trade war, cited a survey by the US Chamber of Commerce in Beijing as reporting that nearly two-thirds of US companies will not consider relocation of their production bases out of China. Only 13 out of 430 surveyed companies were considering leaving China and heading for Southeast Asia. 

CNBC quoted Nick Marro, an analyst in Hong Kong, as saying that it takes three to five years to relocate production activities from China to another country.

Vietnamese government officials are optimistic about FDI, saying that even without the trade war, Vietnam would still be an attractive destination for foreign investors thanks to high GDP growth, political certainties, cheap labor force, and significant incentives offered by the government.


RELATED NEWS

Trade war presents opportunity for VN

Trade war brings more tenants to Vietnamese realtors


Mai Lan

MORE NEWS

The “seven-star” islands in Quang Ninh

Along with crystal blue sea and beaches, the 7 Sao (seven star) islands also have caves and primeval forests.

Customs you only see in Vietnam

The travel site Culture Trip has listed a number of Vietnamese customs that often surprise foreign tourists:

Investors and buyers play waiting game in credit switch

The State Bank of Vietnam finally created extra credit room for some banks on September 7. However, the extension is deemed low and may not help real estate businesses and homebuyers access feasible capital sources for their projects.

Woodwork exports to EU, US drop as consumers cut spending

Many woodwork manufacturers complain that exports have been sliding as people in target markets have been tightening their purse strings.

Vietnam: new destination for multinationals to set up R&D centers

Vietnam wants to upgrade foreign direct investment (FDI) quality by manufacturing products with higher hi-tech and added value, and multinationals are also striving to do this after many years in Vietnam.

Huge real estate projects seek new investors

Many investors have quit large-scale investment projects capitalized at trillions of dong.

VIETNAM NEWS HEADLINES SEPTEMBER 24

Work starts on Tan Van-Nhon Trach section of HCM City’s Ring Road No.3

Three Vietnamese airlines named among world’s best air services

Vietnam Airlines, Vietjet Air, and Bamboo Airways have been honoured in different categories by Skytrax, a UK-based site which ranks airlines and airports.

Vietnam Days Abroad 2022 to take place in Austria, India, RoK

Vietnam Days Abroad 2022 will be held in Austria, India, and the Republic of Korea (RoK) on the occasion of the anniversaries of diplomatic relations between Vietnam and these countries.

UN backs Vietnam’s development priorities: Secretary-General

The United Nations (UN) will continue paying attention to and support Vietnam's development priorities towards green and sustainable orientations, and just transition, especially in terms of financial access.

Vietnam merits seat at UN Human Rights Council: Washington Times

The Washington Times has published an article in which it supports Vietnam's candidacy for the United Nations Human Rights Council (UNHRC) for the 2023-2025 term.

Storm Noru to enter East Sea, localities warned to stay alert

The National Centre for Hydro-Meteorological Forecasting has predicted that storm Noru will enter the East Sea on September 25 evening, and recommended coastal localities to brace themselves for the storm.

Vietnam plans to vaccinate under-5 children against COVID-19 if there’s scientific basis

The Ministry of Health has asked provinces to calculate the number of children from 6 months old to under 5 years old to prepare a plan on COVID-19 vaccination for them when there are enough conditions and scientific basis.

VIETNAM BUSINESS NEWS SEPTEMBER 24

Untapped opportunities for Vietnamese pepper exports to UK

Startup ecosystem requires helping hand

Big passion for establishing businesses with novel ideas from many Vietnamese people is creating a vivid startup ecosystem for the country. However, the community is longing for more favourable conditions for it to grow further.
back_to_top