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Chinese corporations are expanding their investments in Vietnam

Chinese corporations are expanding their investments in Vietnam

Wednesday 24, 04 2024
Power China, BYD, China Rare Earth Group, and Haosen Electronics Battery Company are among the Chinese enterprises planning to invest in Vietnam in the near future.

Investment in energy projects and others

On the afternoon of April 9th, in Beijing, National Assembly Chairman Vuong Dinh Hue met with leaders of major corporations and companies as part of his official visit to China.

During the meeting, the General Director of China Power Construction Corporation, Wang Ban, stated that the corporation aims to expand its investment in Vietnam in the near future.

Since 2018, the corporation has focused on developing clean energy in Vietnam and has been involved in constructing numerous energy projects with a total contract value of over 9 billion USD, employing 1,000 workers.

National Assembly Chairman Vuong Dinh Hue noted that the sectors in which corporations wish to invest in Vietnam are also the key sectors attracting domestic and foreign investment in the country.

To fulfill Vietnam's commitments at COP26, Vietnam has approved the National Power Development Plan for the period 2021-2030, with a vision to 2050, and recently, the Prime Minister has issued an implementation plan.

At the beginning of 2022, the National Assembly passed a law and amended nine laws, including the Electricity Law, and will continue to comprehensively review and amend laws to attract investors in this sector.

National Assembly Chairman commended the scale, potential, and technological capabilities, and welcomed the corporations' plans to expand their investment and production in Vietnam in the coming time.

In late 2023, during a working session with the leadership of Vietnam Electricity Group, Fu Yong, Chairman of Power China Equipment Group - a subsidiary of this corporation, expressed a desire to cooperate with EVN, especially in hydropower projects, expanding existing hydropower plants, offshore wind power, etc.

Chinese corporation investment in energy projects in Vietnam

Additionally, Lu Huanming, Vice Chairman of BYD Group's Board of Directors, mentioned plans to invest in electric vehicles in Vietnam and proposed preferential policies for the production and consumption of new energy vehicles.

Regarding the location for leasing land to establish electric vehicle production plants, according to information from the 2024 Shareholders' Meeting of Gelex Corporation, representatives of BYD Group have chosen Phu Ha Industrial Zone of Viglacera for research and investment activities. Viglacera, BYD, and Phu Tho provincial leaders have engaged in relatively lengthy negotiations.

However, the formal implementation depends on BYD's strategy and the electric vehicle market situation. Viglacera - a member of Gelex Corporation, is also preparing about 100 hectares of commercial land, if BYD has demand.

Previously, BYD Group had invested in building a production plant with initial investment capital of nearly 270 million USD in Phu Tho province since 2021, which became operational in August 2022. The plant primarily assembles tablets and produces electronic components for unmanned ultra-light aircraft products.

BYD Group investment in Phu Tho

By early 2023, BYD Vietnam adjusted its investment for the second time, adding 184 million USD to invest in the production of electronic components with ceramic, glass, metal, graphics cards, and battery production for tablets and phones. The project began construction in May 2023.

Then, in August 2023, BYD Vietnam adjusted its investment for the third time, adding another 144 million USD to produce modems for 5G and 4G BTS stations and lithium batteries for phones, tablets, and electronic products. The project is expected to start construction investment in October 2023.

Thus, BYD has registered a total investment of nearly 600 million USD in Phu Tho province in a short period.

Meanwhile, Liu Leiyun, CEO of China Rare Earth Group (CREG), expressed the group's desire to further strengthen relations with Vietnam National Coal and Minerals Industries Group and other units to cooperate in important mineral sectors.

National Assembly Chairman Vuong Dinh Hue highly appreciated the capacity and experience of the corporation, stating that the rare earth industry, a strategic industry including rare earths, is the foundation for the development of many other important industries in the current context.

Vietnam welcomes enterprises to research and implement cooperation in this field to promote socio-economic development in line with Vietnamese law.

Moreover, Dexi Dong, Chairman of the Board of Directors of Haosen Electronics Battery Company, stated that the company plans to establish a new production base in Vietnam.

Vietnam’s supporting policies

Many Chinese business leaders also expressed interest in policies supporting foreign technology companies and evaluated Vietnam as a country with many advantages in exporting to international markets.

In discussions with enterprises, National Assembly Chairman Vuong Dinh Hue mentioned that Vietnam has issued many preferential mechanisms such as exemption and reduction of corporate income tax, land rental fees, and other incentive policies to attract investment in new industries.

He stated that Vietnam is preparing necessary conditions to enhance investment cooperation, such as training high-quality human resources, especially in technology, electronics, and many other fields.

The National Assembly and the Government will continue to improve the business environment and policies to attract more large international corporations to invest.

In addition to the above four enterprises, many other large Chinese corporations have also expanded their investments in Vietnam through joint ventures and share acquisitions.

The latest event was the signing of a joint venture contract between Geleximco Group and the Omoda & Jaecoo brand to jointly build a plant in Thai Binh with a capacity of 200,000 vehicles per year, with an initial investment capital of 800 million USD.

According to the initial direction, this joint venture will produce hybrid vehicles to serve the market instead of focusing solely on electric vehicles.

Furthermore, the Joint Venture Company Minh Quang Investment Trading and Technology - Huadian Technology Corporation, China, proposed to the Quang Tri Provincial People's Committee to invest in a green hydrogen production plant project at Dong Gio Linh Industrial Cluster in early March 2024. The total initial investment capital is nearly 2.4 billion USD.

Additionally, one of the large private joint-stock companies in China - CDH Investments, officially acquired a 5% stake in Bach Hoa Xanh at the beginning of this month.

Source: theleader

Compiled by VietnamCredit

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