China had 1,616 active foreign direct investment (FDI) projects in Vietnam with total capital of $11.19 billion as at March 20, according to the Foreign Investment Agency (FIA) at the Ministry of Planning and Investment.
Vietnam’s northern neighbor therefore ranks eighth among 116 countries and territories with investment projects in the country.
Average capital per project stands at some $6.9 million, compared to about $13 million for all FDI projects.
Chinese investment is primarily in the processing and manufacturing industry, with 1,072 projects and total registered capital of $6.87 billion, accounting for 61.4 per cent of investment capital from China in Vietnam.
Following was the production and distribution of electricity, gas, and water, and air conditioning, with total registered capital of $2.04 billion, accounting for 18.2 per cent.
Investment in real estate was the third highest, reaching $631.2 million, or 5.6 per cent.
Chinese projects are mainly 100 per cent foreign invested, with 1,318 projects and total capital of $7.45 billion, accounting for more than 66.5 per cent of investment capital from the country.
Some 18.4 per cent of total registered capital is in the form of build-operate-transfer (BOT), build-transfer (BT), and build-transfer-operate (BTO) contracts, while 15 per cent are in the form of joint ventures, business cooperation contracts, or joint stock companies.
Investment from China has found its way to 54 of Vietnam’s 63 cities and provinces.
South-central Binh Thuan province attracted the most, with just seven projects but total registered investment capital of $2.03 billion, accounting for 18.1 per cent of the total from China.
Southern Tay Ninh province followed with 46 projects and capital of $1.65 billion, accounting for 14.8 per cent, then northern Bac Giang province with 61 projects and $957.56 million, accounting for more than 8.5 per cent.
In the first quarter of 2017, Chinese investors invested in the Billion Vietnam project in Tay Ninh province, producing polyester and synthetic fiber, with total investment capital of $220 million.
Photo: CBR Investment AG