Vietnam wins big as Chinese, US investment surges

TAIPEI (TVBS News) — As Chinese leader Xi Jinping visited Vietnam on Tuesday (Dec. 12), reports from Japanese media indicate that U.S. companies like Apple are increasingly moving production, and Chinese firms are rapidly establishing supply chains in Vietnam.

Following export restrictions implemented in 2022 by the Biden Administration on advanced semiconductors and semiconductor production equipment to China, Chinese manufacturers have encountered difficulties in producing state-of-the-art products. This has led to a discernible shift in investment towards alternative manufacturing bases, with Vietnam emerging as a key beneficiary.

Statistics from Vietnam's Foreign Investment Agency (FIA) show that from January to November 2023, approved foreign direct investment increased by 15% compared to the same period last year, reaching US$28.8 billion. Investment from China, including special administrative regions like Hong Kong and Macao, has doubled from last year during the same timeframe, amounting to US$8.3 billion.

Moreover, Chinese investment in Vietnam is significantly higher when routed through subsidiaries based in Singapore and Thailand. Notable investments include Shandong Haohua Tire Co. Ltd.'s announcement of a US$500 million investment and Trina Solar Co., Ltd.'s decision to invest US$420 million.

Following a visit to Vietnam in May by BYD Company CEO Wang Chuanfu this year, the company expressed intentions to produce electric vehicles and announced an expansion investment of US$144 million in August, taking its total investment to over US$400 million.

Japanese experts believe that for these Chinese enterprises to be seen as partners by local players, actions such as joint advancements in cutting-edge technology with local entities are necessary.