China invested about $1.6 billion in Vietnam in the first four months of this year, making it the country’s fourth largest source of foreign investment, according to the Foreign Investment Agency under Vietnam’s ministry of planning and investment. Chinese investors funded several large projects in the period that included two tyre manufacturing plants.
The first tyre manufacturing project was funded with a total registered capital of $280 million in the southern province of Tây Ninh and the other such plant of Advance Tire (Vietnam) Co. Ltd in the southern province of Ti?n Giang has a registered capital of $214.4 million.
Economic and trade relations between Vietnam and China have been flourishing as is evident from the continuous rise in bilateral trade turnover and the former is fast turning an attractive investment destination for Chinese enterprises.
China is currently Vietnam’s second largest export market after the United States. Vietnam is also China’s largest trading partner in ASEAN and its eighth largest in the world. It is China’s fifth largest export market and ninth largest import market, according to a Vietnamese media report.
Vietnam-China trade turnover reached $106.7 billion last year, up 13.5 per cent compared to 2017, according to the ministry of industry and trade. Vietnam exported goods worth $41.26 billion, up 16.56 per cent, while imports reached $65.43 billion, up 11.68 per cent.
Vietnam’s garment and textile export turnover to the Chinese market increased by 24 per cent from $3.2 billion in 2017 to $4.1 billion in 2018, said executive director of Vietnam National Garment and Textile Group (Vinatex) Cao H?u Hi?u. Yarn was the product most exported to China, making up 48 per cent of all textiles.
However, Hi?u said many Vietnamese enterprises, including textile firms, face difficulties when attempting to export goods to China, as the production scale of Vietnamese enterprises is relatively small and many enterprises have not actively explored consumption habits, market information or quality standards and quarantine testing in China.