Vietnam Economy Forum

[DarkMoon198]

Foreign indirect investment in Vietnam surges in 9 months



HANOI, Oct. 18 (Xinhua) -- Vietnam lured some 4.2 billion U.S. dollars in foreign indirect investment in the first nine months of 2017, up 64 percent on-year, the country's General Statistics Office said on Wednesday.

Of the money, 660 million U.S. dollars was poured into Vietnam's stock market.

In the nine-month period, Vietnam licensed 1,844 foreign direct investment projects with total registered capital of 14.6 billion U.S. dollars, while seeing 878 operational projects increase capital by nearly 6.8 billion U.S. dollars, according to the Foreign Investment Agency.



***

What is the breakdown of investment over the past 9 months by country/economic region?

According to the data from FIA (Foreign investment agency). Data post on website is only available till April, I think they will publish the rest at the end of the year. Till April this year, China rank third ( $800 million), behind South Korea and Singapore, followed by Taiwan, Japan Hong Kong, BVI, USA, Thailand. China investment in first 3 month almost 2/3 of Chinese investment in 2015.

Or you can read from Taiwanese news:

Taiwan Vietnam’s fourth largest foreign investor
Vietnam is among the six targeted countries to be included in the first phase of the government's "New Southbound Policy"
By Wendy Lee, Taiwan News, Staff writer

TAIPEI (Taiwan News) - According to the latest statistics published by Vietnam’s General Statistics Office, Taiwan’s investors stand as the fourth largest source of foreign capital in Vietnam, trailing only behind South Korea, Singapore, and China.

In the first quarter of this year, Vietnam attracted over US$7.71 billion in Foreign Direct Investment (FDI), a 77.6 percent increase from the same period last year, with most of the investment focused on processing and manufacturing sector and real estate sector, registering US$6.54 billion and US$343.69 million in foreign investment, respectively.

As many as 71 countries invested in the Southeast Asian country in the first three months of 2017, according to the statistics, with South Korea ranked first in terms of foreign investment capital at US$3.71 billion, accounting for 48.6% of the total FDI.

Singapore and China came in second and third at US$910.8 million and US$823 million, respectively, whereas Taiwan registered $644.18 million worth of FDI to come in fourth.

Under Taiwan’s “New Southbound Policy,” which seeks to forge closer trade and economic ties with countries in South and Southeast Asia, Vietnam is seen as one of the most important nations for Taiwan and is among the six targeted countries to be included in the first phase of the policy, along with the Philippines, Indonesia, India, Thailand, and Malaysia.

But from this Vietnamese newspaper, till August 2017, after CABC meeting in Beijing discuss about trade between two countries provinces, China investment rank fourth till August with register FDI of 1.27 billion in 176 projects.
Article is here but in vietnamese, sorry I can't post link cause not enough messages

Việt Nam - Điểm đến quan trọng của nhà đầu tư Trung Quốc


Hai bên cần tăng cường hợp tác ngành nghề sản xuất, lấy đó làm động lực để nâng cấp kết cấu thương mại và đầu tư.
Chiều 18/9, tại Bắc Kinh, Trung Quốc, Hội đồng thương mại Trung Quốc – ASEAN (CABC) đã phối hợp với Đoàn đại biểu tỉnh Tuyên Quang, Đại sứ quán và Thương vụ Việt Nam tại Trung Quốc tổ chức buổi Tọa đàm xúc tiến thương mại và đầu tư Trung Quốc - Việt Nam.

Tại buổi tọa đàm, hai bên đã trao đổi và đánh giá tích cực những thành quả về hợp tác thương mại đầu tư giữa Việt Nam và Trung Quốc trong thời gian qua.

Về thương mại song phương, tính tới hết 8 tháng đầu năm 2017, thương mại hai chiều Việt Nam - Trung Quốc đạt 71,9 tỷ USD, tăng 20,1%, trong đó Trung Quốc xuất khẩu sang Việt Nam đạt 44,2 tỷ USD, Việt Nam xuất khẩu sang Trung Quốc đạt 27,6 tỷ USD với mức tăng trưởng lần lượt 16,8% và 25,8%. Ngoài ra, Trung Quốc cũng trở thành nhà đầu tư nước ngoài lớn thứ 4 tại Việt Nam với số vốn đăng ký 1,27 tỷ USD tại 176 dự án.



Ông Nguyễn Văn Sơn – Chủ tịch HĐND tỉnh, Trưởng đoàn Đoàn đại biểu Tỉnh Tuyên Quang.

Hai bên cho rằng, nếu tính cả các nguồn vốn thông qua các thị trường trung chuyển như Singapore, Malaysia, Hong Kong (Trung Quốc). . . thì số vốn đầu tư của Trung Quốc tại Việt Nam còn lớn hơn nhiều. Việt Nam hiện đã trở thành điểm đến quan trọng của các nhà đầu tư Trung Quốc trong khu vực.

Ông Hứa Ninh Ninh, Chủ tịch Hội đồng thương mại Trung Quốc – ASEAN cho rằng, những yếu tố tương đồng về mô hình, thể chế và tư duy giữa Trung Quốc và Việt Nam đã giúp hai bên có sự hợp tác mạnh mẽ về kinh tế thương mại trong thời gian qua.

Việt Nam với ưu thế về nguồn lao động dồi dào, chính sách ưu đãi thu hút đầu tư cùng với sự tiện lợi về giao thông là điểm đến lý tưởng cho các nhà đầu tư Trung Quốc, và hiện Trung Quốc là đối tác thương mại lớn nhất của Việt Nam, còn Việt Nam là đối tác thương mại lớn nhất của Trung Quốc trong các nước ASEAN.

Nhằm đẩy mạnh hợp tác thương mại giữa hai nước, Ông Hứa Ninh Ninh cho rằng, hai bên cần tăng cường hợp tác ngành nghề sản xuất, lấy đó làm động lực để nâng cấp kết cấu thương mại và đầu tư.

Ông Nguyễn Văn Sơn – Chủ tịch HĐND tỉnh, Trưởng đoàn Đoàn đại biểu Tỉnh Tuyên Quang đánh giá cao những kết quả mà hai bên đạt được trong thời gian quan. Nhấn mạnh, những chuyến thăm cấp nhà nước của lãnh đạo cao cấp giữa hai Đảng, Nhà nước với những thỏa thuận hợp tác giữa hai nước trên mọi lĩnh vực, đã tạo thêm cơ hội và động lực thúc đẩy mạnh mẽ hợp tác kinh tế, văn hóa giữa hai nước Việt Nam - Trung Quốc.

Về hợp tác giữa tỉnh Tuyên Quang với các địa phương và doanh nghiệp của Trung Quốc, ông Nguyễn Văn Sơn cho rằng, tại Tuyên Quang, đã có những dự án đầu tư trực tiếp của doanh nghiệp Trung Quốc, có những dự án lớn mà nhà thầu thi công là doanh nghiệp Trung Quốc, sử dụng thiết bị và công nghệ của Trung Quốc.

Tuy nhiên, không gian nhu cầu, tiềm năng hợp tác giữa Tuyên Quang với các đối tác, nhà đầu tư của Trung Quốc vẫn còn rất nhiều cơ hội chưa được khai thác, nhiều việc cần và có thể làm để mở rộng, nâng cao hơn nữa hiệu quả hợp tác vì sự phát triển của mỗi bên.

“Tuyên Quang rất mong muốn được đón nhiều doanh nghiệp Trung Quốc đến tìm hiểu đầu tư tại Tuyên Quang. Tỉnh cam kết tạo mọi điều kiện thuận lợi cho các nhà đầu tư Trung Quốc đến tìm hiểu, tìm cơ hội hợp tác đầu tư”, ông Sơn nhấn mạnh.

Tại buổi tọa đàm, Đoàn đại biểu Tỉnh Tuyên Quang cũng trao đổi với CABC danh mục 15 dự án trọng điểm mời gọi đầu tư của Tỉnh trong thời gian tới./.

PV/VOV-Bắc Kinh

For total investment at the end of 2016:
1) S.Korea : $48.6 billion
2) Japan : $39.8 billion
3) Singapore: $38 billion
4) Taiwan : $31.7 billion
5) BVI : $20 billion
6) Hong Kong: $16.6 billion
7) Malaysia : $13.9 billion
8) USA. : $10.9 billion
9) China : $10.7 billion
10) Thailand : $9 billion[/QUOTE]

 

[Viet]

Obviously the two used different sets of standards to calculate FDI:

Of the sum, $14.56 billion came from 1,844 new projects, up 30.4 per cent year-on-year, according to the latest report from the Ministry of Planning and Investment’s Foreign Investment Agency.

Another $6.75 billion was added to 878 existing projects, 28.3 per cent higher than the same period last year.

The remainder of the FDI, worth $4.16 billion, came from 3,742 deals made by foreign investors to contribute capital to businesses and to buy shares of Vietnamese businesses, jumping 64 per cent compared with last year’s corresponding period.

http://vietnamnews.vn/economy/394540/fdi-grows-34-from-last-year.html#5QOTbLvFMztEtLbC.97

In the nine-month period, Vietnam licensed 1,844 foreign direct investment projects with total registered capital of 14.6 billion U.S. dollars, while seeing 878 operational projects increase capital by nearly 6.8 billion U.S. dollars, according to the Foreign Investment Agency.

http://news.xinhuanet.com/english/2017-10/18/c_136689451.htm



Better keep the SOEs publicly-owned. Instead of selling them away to foreign investors (privatization), restructure them let them run a private business while still caring more for public interests rather than private interests.

Vietnam is a country in transition, probably is in the stage what China was 20 years ago. Many SoEs make losses the government no longer wants to bear. Chinese do better in economy, both private and state companies.

Made in China trains for Hanoi Metro

 

[TaiShang]

Vietnam is a country in transition, probably is in the stage what China was 20 years ago. Many SoEs make losses the government no longer wants to bear. Chinese do better in economy, both private and state companies.

Still, selling out hard-established public companies is only short-term solution. Reforming them would be better, in my opinion. Besides, SOEs are supposed to lose money because it is, after all, for public goods. Even in Taiwan, rail industry (HSR, mostly because Japanese tech and trying to patch together various foreign systems) and post office keep losing money. But we still need them and keep them as such.

***

China-Vietnam border trade zone opens
Xinhua, October 23, 2017

NANNING, Oct. 23 (Xinhua) -- A new China-Vietnam cross-border trade zone in south China's Guangxi Zhuang Autonomous Region has opened, local authorities said Monday.

The Longbang-Tra Linh trade zone in the border city of Jingxi covers an area of 50,000 square meters and involves investment of 60 billion yuan (9 billion U.S. dollars).

Construction began in 2013 and trial operation in September this year.

Residents living within 20 kilometers of the border will be able to exchange commodities at the trade zone and enjoy a duty-free policy if spending less than 8,000 yuan per day.

Compared with other China-Vietnam trade zones, Longbang-Tra Linh will offer a better customs clearance, said Tran Dai Nghia, chairman of Vietnam VCI Logistics Joint Stock Company.

China is a huge market and exports from Vietnam will reach Chinese consumers faster through the trade zone, according to the company.

The trade zone will create about 100,000 jobs and help lift 350,000 people out of poverty in the border area.

http://www.china.org.cn/china/Off_the_Wire/2017-10/23/content_41779880.htm

 

[Viet]

Still, selling out hard-established public companies is only short-term solution. Reforming them would be better, in my opinion. Besides, SOEs are supposed to lose money because it is, after all, for public goods. Even in Taiwan, rail industry (HSR, mostly because Japanese tech and trying to patch together various foreign systems) and post office keep losing money. But we still need them and keep them as such.

***

China-Vietnam border trade zone opens
Xinhua, October 23, 2017

NANNING, Oct. 23 (Xinhua) -- A new China-Vietnam cross-border trade zone in south China's Guangxi Zhuang Autonomous Region has opened, local authorities said Monday.

The Longbang-Tra Linh trade zone in the border city of Jingxi covers an area of 50,000 square meters and involves investment of 60 billion yuan (9 billion U.S. dollars).

Construction began in 2013 and trial operation in September this year.

Residents living within 20 kilometers of the border will be able to exchange commodities at the trade zone and enjoy a duty-free policy if spending less than 8,000 yuan per day.

Compared with other China-Vietnam trade zones, Longbang-Tra Linh will offer a better customs clearance, said Tran Dai Nghia, chairman of Vietnam VCI Logistics Joint Stock Company.

China is a huge market and exports from Vietnam will reach Chinese consumers faster through the trade zone, according to the company.

The trade zone will create about 100,000 jobs and help lift 350,000 people out of poverty in the border area.

http://www.china.org.cn/china/Off_the_Wire/2017-10/23/content_41779880.htm

The problem is VN has no money to bail out companies for eternity. China has money. Taiwan has money. Vietnam hasn’t.

Such free trade zones are great stuff. The kimchi people oh I mean the Koreans want to increase trades with VN to $100 billion a year by 2020. it would be embarrassing if the bar sets lower than $150 billion for CN/VN trades.

 

[TaiShang]

The problem is VN has no money to bail out companies for eternity. China has money. Taiwan has money. Vietnam hasn’t.

It does not always mean splashing money and bailing out, like the US did with private companies in 2008-9. It means reforming their management, injecting some sort of market rationality in their actions, and forcing them to become more competitive by holding the management accountable.

China did this with energy industry in the early 2000s. In the end, after you sell them out, this is what the private interests would do, in the best case scenario. But, usually, what they do is to adopt cost-saving measures, which would mean firing workers and increasing workload on those who remain. In the worst case scenario, they just get the SOE very cheap and then sell the land, machinery, etc. to recover the money and make some profit, then just lock down the business, firing thousands.

That's a recipe for social instability. I guess Latin America, under the Washington-led structural reforms, went through this hell in the 80s.

 

[Viet]

It does not always mean splashing money and bailing out, like the US did with private companies in 2008-9. It means reforming their management, injecting some sort of market rationality in their actions, and forcing them to become more competitive by holding the management accountable.

China did this with energy industry in the early 2000s. In the end, after you sell them out, this is what the private interests would do, in the best case scenario. But, usually, what they do is to adopt cost-saving measures, which would mean firing workers and increasing workload on those who remain. In the worst case scenario, they just get the SOE very cheap and then sell the land, machinery, etc. to recover the money and make some profit, then just lock down the business, firing thousands.

That's a recipe for social instability. I guess Latin America, under the Washington-led structural reforms, went through this hell in the 80s.

VN is not CN, even the political system is different despite socialism in name. While Xi Jinping holds the absolute power in his hand: chief of the party, government and army, the power is shared between three different men in VN. Vietnamese people fear a regime of tyranny if one man decides the fate of the nation.

A Durtete in VN is unimaginable. Vietnam is ruled by collectives.

What I am saying is if a method works in China should not mean it will work in Vietnam.

 

[Viva_Viet]

It does not always mean splashing money and bailing out, like the US did with private companies in 2008-9. It means reforming their management, injecting some sort of market rationality in their actions, and forcing them to become more competitive by holding the management accountable.

China did this with energy industry in the early 2000s. In the end, after you sell them out, this is what the private interests would do, in the best case scenario. But, usually, what they do is to adopt cost-saving measures, which would mean firing workers and increasing workload on those who remain. In the worst case scenario, they just get the SOE very cheap and then sell the land, machinery, etc. to recover the money and make some profit, then just lock down the business, firing thousands.

That's a recipe for social instability. I guess Latin America, under the Washington-led structural reforms, went through this hell in the 80s.

What @Viet said is correct abt VN's communist system. SOE is just like a place where the elite collect more power. When a leader can own more SOE then he will has more power and others in Politburo can not control him leading to the imbalance in sharing power.

To solve the problem, we let friendly countries like JP,SK, Sing to get some power share by selling some SOE to them. So, VN will get some money and keep the balancing in power sharing system while friendly countries also can make benefit in VN.

 

[TaiShang]

What @Viet said is correct abt VN's communist system. SOE is just like a place where the elite collect more power. When a leader can own more SOE then he will has more power and others in Politburo can not control him leading to the imbalance in sharing power.

To solve the problem, we let friendly countries like JP,SK, Sing to get some power share by selling some SOE to them. So, VN will get some money and keep the balancing in power sharing system while friendly countries also can make benefit in VN.

I see. Despite similar systems, Vietnam appears to lack similar checks on performance to ensure meritocracy.

It will likely be an uphill battle for the VCP as Vietnam economy continues to grow and perhaps catch a two-three decades long boom cycle, lime China did from the 90s onwards.

Reforms and continuous meritocratic checks are important in this stage because a lot of wealth and power will be generated.

I do hope the VCP will come out of it stronger.

 

[Viva_Viet]

I see. Despite similar systems, Vietnam appears to lack similar checks on performance to ensure meritocracy.

It will likely be an uphill battle for the VCP as Vietnam economy continues to grow and perhaps catch a two-three decades long boom cycle, lime China did from the 90s onwards.

Reforms and continuous meritocratic checks are important in this stage because a lot of wealth and power will be generated.

I do hope the VCP will come out of it stronger.

Meritocracy is very close to dictatorship, maybe Nazi also said that Hitler built a Meritocracy system. So, we will try to avoid Meritocracy.

I also do hope that MR.Xi can win in the battle of retaking TW before CN facing wt bigger problem from economic crisis and aging problem, but I think that CN is not strong enough to fight against US-JP , so once day, CN will have to ask for support from VN.

 

[Viet]

Meritocracy is very close to dictatorship, maybe Nazi also said that Hitler built a Meritocracy system. So, we will try to avoid Meritocracy.

I also do hope that MR.Xi can win in the battle of retaking TW before CN facing wt bigger problem from economic crisis and aging problem, but I think that CN is not strong enough to fight against US-JP , so once day, CN will have to ask for support from VN.

bro TW is internal Chinese business we won’t interfere, least supporting CN in the conflict. Considering we see Taiwan as “true China” holding the banner of Chinese civilization, if anything we should support Taiwan instead.

@TaiShang
@Martian2

Taiwan is welcome in Vietnam!

Today’s news

Vincom Retails successful IPO, raising $709 million, valuing the new company $3.4 billion.

Hundreds of other companies will follow suit.

Here is the chance of the century for smart Taiwanese businesses to make money.

https://www.reuters.com/article/vin...-6-after-raising-709-mln-in-ipo-idUSL4N1N22AD

 

[TaiShang]

bro TW is internal Chinese business we won’t interfere, least supporting CN in the conflict. Considering we see Taiwan as “true China” holding the banner of Chinese civilization, if anything we should support Taiwan instead.

@TaiShang
@Martian2

Taiwan is welcome in Vietnam!

Today’s news

Vincom Retails successful IPO, raising $709 million, valuing the new company $3.4 billion.

Hundreds of other companies will follow suit.

Here is the chance of the century for smart Taiwanese businesses to make money.

https://www.reuters.com/article/vin...-6-after-raising-709-mln-in-ipo-idUSL4N1N22AD

View attachment 433595 View attachment 433596

Taiwan businessmen are known to be quite ruthless -- toward people and the environment. My tiny island has contributed a lot to the list of tainted food, from milk to pearl (for bubble tea) and, of course, oil.

You would like to have more Mainland investment, rather than Taiwan.

As for supporting Taiwan or Mainland, I would advise against supporting Taiwan for anything more than doing business because it would be your country to get caught in the middle and suffer terribly.

The banner of Chinese civilization cannot be held by its small integral part, the banner is shared by the entire Greater China even if we witness different levels of development and local differences such as food. But, in general, you cannot distinguish Taiwan food from Fuzhou or Fujian food.

So, better be smart than dead, when it comes to One China, which, of course, VCP knows and recognizes.

Let's not delve into divisive politics, otherwise, each nation has fault lines that can be exploited. And, I believe, when it comes to exploitation, China's capabilities would surpass that of Vietnam. But, of course, China recognizes and supports a unified Vietnam.

 

[Viva_Viet]

bro TW is internal Chinese business we won’t interfere, least supporting CN in the conflict. Considering we see Taiwan as “true China” holding the banner of Chinese civilization, if anything we should support Taiwan instead.

@TaiShang
@Martian2

Taiwan is welcome in Vietnam!

Today’s news

Vincom Retails successful IPO, raising $709 million, valuing the new company $3.4 billion.

Hundreds of other companies will follow suit.

Here is the chance of the century for smart Taiwanese businesses to make money.

https://www.reuters.com/article/vin...-6-after-raising-709-mln-in-ipo-idUSL4N1N22AD

View attachment 433595 View attachment 433596

I bet that CN will never be strong enough to fight against US-JP in TW conflict. Thats could be the reason why chairman Mao helped VN to defeat France-US cos he thought once day, CN will ask support from VN to kick US out of TW and we have to return the favor ....otherwhile, if US attack VN again, then No one will come to help us.

We dislike Deng, but never forget Mao's support. We r not ungrateful ppl, bro.

 

[Viet]

Taiwan businessmen are known to be quite ruthless -- toward people and the environment. My tiny island has contributed a lot to the list of tainted food, from milk to pearl (for bubble tea) and, of course, oil.

You would like to have more Mainland investment, rather than Taiwan.

As for supporting Taiwan or Mainland, I would advise against supporting Taiwan for anything more than doing business because it would be your country to get caught in the middle and suffer terribly.

The banner of Chinese civilization cannot be held by its small integral part, the banner is shared by the entire Greater China even if we witness different levels of development and local differences such as food. But, in general, you cannot distinguish Taiwan food from Fuzhou or Fujian food.

So, better be smart than dead, when it comes to One China, which, of course, VCP knows and recognizes.

Let's not delve into divisive politics, otherwise, each nation has fault lines that can be exploited. And, I believe, when it comes to exploitation, China's capabilities would surpass that of Vietnam. But, of course, China recognizes and supports a unified Vietnam.

No worry we aren’t stupid to support TW. Good if both VN and CN do more in business. The new LG Vietnam factory will produce 100,000 camera for iPhone per day. I guess all products will be delivered to China for final assembly of iPhones.

https://www.digit.in/mobile-phones/...-manufacture-iphone-camera-modules-37798.html

 

[ChineseTiger1986]

What @Viet said is correct abt VN's communist system. SOE is just like a place where the elite collect more power. When a leader can own more SOE then he will has more power and others in Politburo can not control him leading to the imbalance in sharing power.

To solve the problem, we let friendly countries like JP,SK, Sing to get some power share by selling some SOE to them. So, VN will get some money and keep the balancing in power sharing system while friendly countries also can make benefit in VN.

The Vietcong lacks the competence to manage their SOE, and to sell it instead of fixing it, the gap of wealth inequality will become even larger.

CPC is very successful to rejuvenate their SOE, and without the backup of the SOE, China wouldn't come out with so many powerful private enterprises such as Huawei/Tencent/Alibaba/Baidu/Xiaomi/JD etc.

When your SOE and private enterprises are thriving at the same time, and your economy is also blooming, then you are talking about a successful economic reform.

I bet that the Vietcong is too afraid to sell the SOE, since this move will only enrich the pro-West oligarch class, and they will be further emboldened to overthrow the Vietcong. Since there are many traitors in your party who have already become the oligarch class want to overthrow the entire communistic system in order to whitewash their illegal wealth.

In the end, the Vietcong will still beg their big brother from China to bail them out, since the management skill between these two parties is like the difference between a PHD student and an elementary student.

 

[Viet]

The Vietcong lacks the competence to manage their SOE, and to sell it instead of fixing it, the gap of wealth inequality will become even larger.

CPC is very successful to rejuvenate their SOE, and without the backup of the SOE, China wouldn't come out with so many powerful private enterprises such as Huawei/Tencent/Alibaba/Baidu/Xiaomi/JD etc.

When your SOE and private enterprises are thriving at the same time, and your economy is also blooming, then you are talking about a successful economic reform.

I bet that the Vietcong is too afraid to sell the SOE, since this move will only enrich the pro-West oligarch class, and they will be further emboldened to overthrow the Vietcong. Since there are many traitors in your party who have already become the oligarch class want to overthrow the entire communistic system in order to whitewash their illegal wealth.

In the end, the Vietcong will still beg their big brother from China to bail them out, since the management skill between these two parties is like the difference between a PHD student and an elementary student.

Hi tiger, long time no see, where have you been lately?

first, "Vietcong" no longer exists and a banned term on defence.pk, so pls don´t use it bro.

second, hell no, VN is not too afraid in selling the SOE, the wave of sales has begun. but no worry, critical companies such as defence, in operating sea and airports are not up to grab.

last, I am not sure, if Chinese government will bail out Vietnam if there is a crisis. what do you think?