Chinese conglomerates express strong interest in expanding investments in Vietnam

June 29, 2023 | 09:46
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Top Chinese groups, including Texhong Group, Goertek Group, and Energy China Group, have shown significant enthusiasm for expanding their investments across various sectors in Vietnam, signalling the country's growing appeal as a lucrative business destination.
Chinese conglomerates express strong interest in expanding investments in Vietnam

In the midst of his official visit to China, Vietnamese Prime Minister Pham Minh Chinh engaged in a series of high-profile meetings with top leaders from several major Chinese economic conglomerates on June 28.

The discussions, held in the bustling capital of Beijing, centred on the burgeoning investment opportunities available in Vietnam.

During the deliberations, prime minister Chinh received a delegation comprising the titans of industries that have already made substantial investments in Vietnam, expressing their ardent desire to expand their production capacities and business ventures in the country.

Among the esteemed attendees were the chairman of Texhong Group Hong Tian Zhu, chairman of Runergy Group Tao Long Zhong, chairman of Energy China Group Song Hailiang, chairman of Goertek Group Jiang Binh, CEO of TCL Wang Cheng, and others.

In March this year, Goertek, one of three major suppliers for Apple in Vietnam, poured an additional $306 million into its multimedia equipment project in the northern province of Bac Ninh. GoerTek has been operating in Vietnam since 2013 and has so far established two facilities in Bac Ninh and the central province of Nghe An.

Texhong has invested over $1.6 billion in Vietnam since 2006, establishing dozens of textile and apparel projects in Dong Nai, Quang Ninh, Thai Binh provinces, creating employment opportunities for more than 25,000 workers. In addition, in Quang Ninh, Texhong also established a textile industrial park to service a vertically integrated textile supply chain.

These influential leaders were duly impressed by Vietnam's dynamic and progressive development and effusively praised the nation's efficient production and business practices. They conveyed their aspirations to bolster their investments in various sectors.

Specifically, they identified energy, industrial infrastructure, social housing, inland ports, vehicle manufacturing, research and development, and supply chain establishment as key areas of interest for future endeavours within Vietnam's fertile investment landscape.

The gathering also witnessed the conglomerate leaders assertively asking the Vietnamese government, under the astute guidance of PM Chinh, to orchestrate an environment that further facilitates and nurtures investment and business activities.

To this end, they advocated for continued administrative reforms, an assured electricity supply to allow for seamless production processes, ample land allocation for industrial park development, and the swift resolution of regulatory bottlenecks surrounding fire safety regulations.

The prime minister, unwavering in his commitment to propel Vietnam's economic growth, graciously acknowledged and commended the achievements of these enterprises.

PM Chinh divulged that Vietnam has already ratified the Power Development Plan VIII. This comprehensive blueprint encompasses the nation's transition to renewable energy, with a specific emphasis on wind and solar power generation, while also incentivising self-generation and consumption. These strategic guidelines serve as an indispensable roadmap for prospective investors seeking to navigate Vietnam's energy landscape.

Beyond the sectors advocated by the conglomerates, he also underscored Vietnam's fervent encouragement for businesses, including those of Chinese origin, to funnel investments into industries such as renewable energy, power transmission, the garment and textile industry, and the establishment of internationally acclaimed fashion exhibition platforms.

This pivotal meeting marks a significant turning point, as Chinese companies increasingly exhibit an interest in expanding their investment portfolios within Vietnam.

Propelled by the nation's favourable business climate, vigorous economic growth trajectory, and commitment to reform, this surge in investment provides a substantial opportunity for both Vietnamese and Chinese enterprises to forge mutually beneficial partnerships and stimulate economic development in both countries.

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Prime Minister Pham Minh Chinh called on Chinese investors to expand investment in Vietnam, while addressing the Vietnam - China Trade and Investment Cooperation Forum in Beijing on June 28 within the framework of his official visit to China.

By Oanh Huong

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