These projects, granted investment certificates last year, are part of a broader trend that has seen Chinese capital pouring into Vietnam at an unprecedented rate.
According to a September 2024 report from HSBC, Vietnam ranked second among Southeast Asian markets targeted by Chinese investors, only behind Singapore. In 2023, Chinese investors registered 4.47 billion USD in new investments in Vietnam, a 77.6% hike from the previous year. This momentum carried into 2024 with 4.73 billion USD, and in Q1 2025 alone, registered capital surged to 1.47 billion USD, up 68.5% year-on-year.
Data from the Ministry of Finance’s Foreign Investment Agency showed that China as the third-largest investor by capital in Q1 2025 but it leads in the number of projects, with 251 new ones comprising 29.5% of all registrations. These figures exclude substantial investments from Taiwan (China) and Hong Kong (China), where firms like Foxconn, Goertek, Pegatron, Luxshare, and Compal operate extensively. Notably, Taiwan’s Lite-On recently launched a 690 million USD facility in Quang Ninh, further bolstering Vietnam’s manufacturing landscape.
This influx is positioning Vietnam as a linchpin in global electronics and semiconductor supply chains, driving economic integration and technological advancement.
From volume to value
In a noteworthy shift, China's recent investment into Vietnam is not just increasing in volume, it is also rising in quality. Contrary to earlier concerns about low-value projects, the latest wave of Chinese capital is targeting strategic, hi-tech sectors. Major Chinese corporations with global footprints in technology, electronics, manufacturing, infrastructure, renewable energy, and electric vehicles have been expanding their footprint in Vietnam.
At a high-level meeting in February, Prime Minister Pham Minh Chinh encouraged continued investment from leading Chinese firms like China Railway No. 6 Engineering Group, China State Construction Engineering Corporation, Power China, Chery, BYD, Sailun, TCL, and Goertek, inviting them to view Vietnam as a strategic base for manufacturing and trade. The response was enthusiastic, with commitments to explore strategic infrastructure, transport, and emerging growth engines like green economy, digital economy, and clean energy.
Hung Yen province recently held an investment promotion conference in Guangxi, yielding promising agreements, including projects for solar panel production, fast-charging station equipment, and a green hydrogen plant with a projected capacity of 3 million tonnes annually.
Should these agreements move forward, Chinese capital will continue to flow into Vietnam, strengthening the bilateral economic interconnectivity./.
