Chinese enterprises investing in Vietnam and identifying new areas

From January to April this year, Beijing's investment in Vietnam increased by 27.76 million US dollars, showing a significant increase. In order to help Beijing enterprises gain a deeper understanding of the investment environment in Vietnam and seize investment opportunities, the Investment Vietnam Promotion Conference, hosted by the Beijing Municipal Bureau of Commerce and the Vietnamese Embassy in China, co organized by Yingke Foreign Service, and hosted by the "Going Global" Navigation Network, was recently held.

"In recent years, many companies from Beijing have invested in building factories in Vietnam, seeking opportunities for business cooperation." Nong Delai, Commercial Counselor of the Vietnamese Embassy in China, said in his speech that Beijing not only has strong economic strength, but also has a large number of high-tech enterprises, and foreign investment in high-tech and innovation fields is Vietnam's priority choice.

Nong De Lai introduced that in order to attract foreign investment, the Vietnamese government has launched a series of preferential policies and measures, including granting foreign investors land use rights, reducing land rent, simplifying foreign investment approval procedures, and tax incentives.

"Up to now, there are a total of 25 enterprises invested by Beijing in Vietnam, involving multiple fields such as park development, manufacturing, information transmission software industry, and animal husbandry, with an investment stock of about 70 million US dollars." Zhuang Jianrong, Director of the Foreign Economic Cooperation Department of the Beijing Municipal Bureau of Commerce, introduced Beijing's foreign investment cooperation policies and activities, stating that capital and technological resources are Beijing's advantages. Currently, the prominent feature of Beijing's foreign investment is that high-tech enterprises have become the main body of "going out". In recent years, Vietnam has become one of the countries with the fastest economic growth in Asia and even the world. Especially in recent years, Vietnam has introduced more preferential policies, built various economic parks, joined free trade agreements such as the Comprehensive and Progressive Trans Pacific Partnership (CPTPP) and Regional Comprehensive Economic Partnership (RCEP), expanded market access, reduced tariffs, and continuously enhanced its advantages of openness. The potential for cooperation between Beijing and Vietnam is enormous.

"Vietnam is a reliable and business filled investment destination," said Nguyen Sih Lan Xiang, General Manager of Yingke Foreign Service Vietnam Branch. In recent years, Vietnam has attracted more and more foreign direct investment with advantages such as tax incentives, market potential, lower labor costs, and excellent geographical location.

Regarding the investment hotspots that Chinese enterprises are concerned about, Nguyen Thi Lan Xiang stated that Vietnam's outward investment cooperation is primarily evaluated based on quality, efficiency, technology, and environmental protection, selectively attracting foreign investment and conducting cooperation; Secondly, priority should be given to projects with high-tech, clean technology, modern management, high added value, spillover effects, technology transfer, and product chain connection. Ruan's Lanxiang suggests that Chinese enterprises focus on areas such as electrical, electronic semiconductors, renewable energy, innovative research and development, digital transformation, high-tech agriculture, and financial centers. In addition, Chinese enterprises should pay special attention to handling their relationships with partners and relevant local departments, fulfilling their corporate social responsibilities, and handling domestic and foreign investment approval procedures in accordance with regulations.

"Every industrial park in Vietnam has specific industry scope requirements when recruiting enterprises, and provides specific preferential policies to enterprises." Pei Shijin ying, the investment promotion manager of the Mingxing SIKICO Industrial Park in Pingfu Province, Vietnam, introduced that in addition to strong support from the government at all levels in Pingfu Province for foreign-funded enterprises in investment promotion, the Mingxing SIKICO Industrial Park also has a "companion" service model, complete infrastructure, and preferential policies such as exemption from corporate income tax for two years after the settled enterprises generate profits.