Agriseco anticipates rising Chinese FDI inflows to Vietnamese market
VOV.VN - Foreign direct investment (FDI) inflow from China into the nation is expected to increase amid China reopening its doors and resuming flights between the two countries, according to Agribank Securities Company (Agriseco).
Agriseco attributes the expected rise to low labour costs in Vietnam coupled with the close geographical proximity between the two nations.
Although investment from China has slowed down over the past three years due to border closure measures, many Chinese-invested projects have continued to expand their investment in Vietnam.
Over the first 11 months of 2022, China ranked fourth among the 97 countries and territories investing in the country.
Following the outbreak of the COVID-19 pandemic, FDI enterprises in China, Hong Kong (China), and Taiwan (China) gradually moved their factories to Vietnam, including Foxconn, Pegatron, and Goertek. However Agriseco noted that if China opens up completely, the supply chain will be less disrupted, subsequently affecting FDI registration in Vietnam in the near future.
Regarding garment and textile enterprises, China's reopening will help them to gain access to material sources more easily, Agriseco said.
Vietnam imports more than 30% of input materials for production from China, mainly machinery and electronic components, as well as textile and garment materials. During China's shutdown, many businesses faced difficulties due to a shortage of raw materials, a sharp increase in input costs, and a congestion of goods.