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Vietnam sees increasing Chinese FDI in 2 months, becoming second largest investor after Singapore

There is no "if", USA is factually far from being largest investor in term of accumulated FDI capital compared to at least six other nations. This is true both 15 years ago, as well as nowadays.
The usa is the largest investor in vietnam in term of accumulated capital because the viet government specifically states that usa invest to vn through hong kong Singapore british virgin as well. The usa is the only investor that is being mentioned by the viet government as investing to vn through other countries. Take intel investment for instance, it wasn't counted as usa investment because intel invested in vn through hong kong and it was confirmed by vn goverment. Exxon has just invested 10 bil usd in vietnam and the amount is bigger than the rest of the investors combined.

Usa is also the largest single foreign remittance of vn. Usa is being accounted for 6 billion out of 10 billion annual remittance While fdi enterprises pay 1 million viet workers about 2 billion a year, remittances from usa is 3 times that amount. Yup, remittances from usa just beat the rest of the fdi investors combined.

Usa is the single largest source of economic contributor of vietnam
 
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The usa is the largest investor in vietnam in term of accumulated capital because the viet government specifically states that usa invest to vn through hong kong Singapore british virgin as well. The usa is the only investor that is being mentioned by the viet government as investing to vn through other countries. Take intel investment for instance, it wasn't counted as usa investment because intel invested in vn through hong kong and it was confirmed by vn goverment.
Wrong.
  • As a matter of fact, FDI data never includes investment via other countries, this universal rule applies across the board not limiting to any single nation. The article you gave titled "US Investment in Vietnam" so it gives American examples of how this principle is being practiced.
  • Likewise, other countries also use US (which itself is world's largest recepient of foreign capital, i.e. foreigner owns far more assets in US than the other way round) as a route to invest in Vietnam, yet same principle applies, no literate person claims this as their FDI. Numerous so-called US companies are foreign invested, say Emerati-owned Globalfoundry, Singaporean-owned Broadcom, Japanese-owned Westinghouse ... but when these companies made FDI, it's accounted as from US, not from UAE, Singapore or Japan.
  • I can't see how Hutchison Whampoa of Hong Kong (Li Ka Shing) investing in Vietnam got anything to do with US, same with Capitaland or Temasek of Singapore. Unlike US, Hong Kong and Singapore are in fact among world's top creditors, i.e. owning massive net international assets.
Back to official FDI data, US was nowhere in sight 15 years ago, as a latecomer only ranked #7 in accumulated FDI as of June 2015, but in 2016 again nowhere in sight. US has never been the largest, not even close.
Exxon has just invested 10 bil usd in vietnam and the amount is bigger than the rest of the investors combined.
Whatever this Exxon deal might be, official data are crystal clear, US only ranked #7 in accumulated FDI by June 2015, and in 2016 US again became nowhere in sight.
http://english.vietnamnet.vn/fms/business/174545/center-of-attraction.html

Speaking of big ticket items, after the large LG plant, Formosa Steel of Taiwan is investing a $11 billion steel plant, so perhaps Taiwan should claim that honor "amount is bigger than the rest of the investors combined". And about oil companies, instead of small ones like Exxon I suggest real big players like Sinopec, PetroChina or CNPC be considered, size does matter.
remittance
Stay on topic, FDI.
 
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Wrong. As a matter of fact, FDI data never includes investment via other countries, this rule applies to any investing country, not just US. The article you gave titled "US Investment in Vietnam" so it give American examples of how this principle is being practiced. Note, other countries also use US (which itself is world's largest recepient of foreign capital, foreigner owns far more assets in US than the other way round) as a route to invest in Vietnam, but same principle applies, no literate person claims this as FDI. An Emerati-owned US-based company's (e.g. Globalfoundry) FDI to cannot be considered as Emerati FDI, a Japanese-owned US-based company's (e.g. Westinghouse) FDI cannot be considered as Japanese. As per official data, US was nowhere in sight 15 years ago, as a latecomer only ranked #7 in accumulated FDI as of June 2015, but in 2016 again nowhere in sight. US has never been the largest, not even close.

Whatever it is, in 2016 official data, US remains nowhere in sight.
http://english.vietnamnet.vn/fms/business/174545/center-of-attraction.html

Speaking of big ticket items, after the large LG plant, Formosa Steel of Taiwan is investing a $11 billion steel plant.

Stay on topic, FDI.
Thank u for your clarification
 
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The usa is the largest investor in vietnam in term of accumulated capital because the viet government specifically states that usa invest to vn through hong kong Singapore british virgin as well. The usa is the only investor that is being mentioned by the viet government as investing to vn through other countries. Take intel investment for instance, it wasn't counted as usa investment because intel invested in vn through hong kong and it was confirmed by vn goverment. Exxon has just invested 10 bil usd in vietnam and the amount is bigger than the rest of the investors combined.

Usa is also the largest single foreign remittance of vn. Usa is being accounted for 6 billion out of 10 billion annual remittance While fdi enterprises pay 1 million viet workers about 2 billion a year, remittances from usa is 3 times that amount. Yup, remittances from usa just beat the rest of the fdi investors combined.

Usa is the single largest source of economic contributor of vietnam

uhhh you are counting remittance as part of FDI... someone need to check their maths LOL.
 
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The usa is the largest investor in vietnam in term of accumulated capital because the viet government specifically states that usa invest to vn through hong kong Singapore british virgin as well. The usa is the only investor that is being mentioned by the viet government as investing to vn through other countries. Take intel investment for instance, it wasn't counted as usa investment because intel invested in vn through hong kong and it was confirmed by vn goverment. Exxon has just invested 10 bil usd in vietnam and the amount is bigger than the rest of the investors combined.

Usa is also the largest single foreign remittance of vn. Usa is being accounted for 6 billion out of 10 billion annual remittance While fdi enterprises pay 1 million viet workers about 2 billion a year, remittances from usa is 3 times that amount. Yup, remittances from usa just beat the rest of the fdi investors combined.

Usa is the single largest source of economic contributor of vietnam

Dude compare apples to apples. Remittances are not guaranteed investment. They can lead to investment sometimes (it depends) but that will be an internal GFCF process or similar.

India can't add near 70 billion in remittances to its 45 billion FDI per year and say we have 115 billion foreign investment lol.
 
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Problem to the FDI from China is that China's govt has unstable policy, it is easily changed when China would like to do some impression on Vietnam. Look at how China did it in Africa ?

Second is the low technology, it could be effected badly for environment in Vietnam.
 
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Problem to the FDI from China is that China's govt has unstable policy, it is easily changed when China would like to do some impression on Vietnam. Look at how China did it in Africa ?

Second is the low technology, it could be effected badly for environment in Vietnam.

FDI is optional, you can refuse it if you don't want it..

but hey at the end of the day, money talks.
 
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oblem to the FDI from China is that China's govt has unstable policy, it is easily changed when China would like to do some impression on Vietnam. Look at how China did it in Africa ?

Not that easy. Minus a major political dispute, FDI or business transactions do not stop overnight. Whatever has been invested in Vietnam is there to stay; just as anywhere else. FDI itself might fluctuate, as @Shotgunner51 has shown that the US is currently nowhere to be seen in Vietnam's FDI intake, but, the established business is more resistant against geopolitical incidents.

During the height of Diaoyu Island crisis, regular meetings at the ministerial level were going on between China-Japan and Korea to conclude the FTA. In fact, the key decision were taken between 2011 and 2013.

Second is the low technology, it could be effected badly for environment in Vietnam.

China is the largest infrastructure builder in the world with the highest quality equipment and practice. If China does ruin the environment, I wonder what Exxon has been doing in Vietnam. Their track record is much more dirtier than CNPC, Sinopec, and CNOOC combined.

Are you comfortable with high Exxon tech?

By the way, which is the highest high-tech exporting country in the world?
 
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You are late and new to the game of fdi in vietnam. It's not how you lead in fdi capital this year but it's the total fdi capital you have invested in vietnam throughout the decades. That honor belong to the japanese, the korean, the american. Most of the factories of vietnam is located in the deep south such as binh duong and dong nai and when you tour this area, pretty much all the factories bear the name of japanese and american companies, none is a chinese one.

The usa is the largest investor in vietnam in term of accumulated capital because the viet government specifically states that usa invest to vn through hong kong Singapore british virgin as well. The usa is the only investor that is being mentioned by the viet government as investing to vn through other countries. Take intel investment for instance, it wasn't counted as usa investment because intel invested in vn through hong kong and it was confirmed by vn goverment. Exxon has just invested 10 bil usd in vietnam and the amount is bigger than the rest of the investors combined.

Usa is also the largest single foreign remittance of vn. Usa is being accounted for 6 billion out of 10 billion annual remittance While fdi enterprises pay 1 million viet workers about 2 billion a year, remittances from usa is 3 times that amount. Yup, remittances from usa just beat the rest of the fdi investors combined.

Usa is the single largest source of economic contributor of vietnam

Do not lie. Unless you say Korean, Japanese, Singapore and Taiwanese are actually American investment, because these countries are American allies, total America investment in Vietnam is tiny, even compared to Russia or Thailand.

Exxon has promised to invest $10B, but it has not materialized yet. Compared to Phase-1 only of Formosa, a Taiwanese company, investment in Ha Tinh Formosa Steel Complex, which amounts to $10B and is already built, it is just equal. Not to mention Phase-2, which amounts to $10 - 20B. A single electronic plant by Korean in Thai Nguyen, Bac Giang or Haiphong now costs $1 - 2B, a 1000MW thermo power plant costs roughly $2B, then you can see that $10B is not big.

Aside from this project, which is now on paper, and Intel plant ($1B), I do not see any big American investment in Vietnam.
 
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I don't really understand this issue of being "grateful" or "ungrateful" of FDI. In the free market if you make yourself attractive to investment, money will come. When business owners invest they are looking for return on risk adjusted return on capital, not gratefulness. If a country is unable to make itself attractive to capital it will not get money regardless of whether it's "grateful" or not. Everyone is looking out for their own best interest. No one will risk doing charity work when their competitors are looking out for their bottom line.
Invest or not invest is driven by desire of making profits. Exactly, usually not because gratefulness is expected. Well there is a big boy out there who wants to invest in infrastructure and buys fruits in large numbers from a newfound friend. Although the big boy knows buying fruits from Vietnam is much cheaper and quickly available.

That is politically motivated investments and purchases. I wonder how long they will continue.
 
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That is politically motivated investments and purchases. I wonder how long they will continue.

It will continue as long as the political environment is favorable, as has been the case throughout human history.
 
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It will continue as long as the political environment is favorable, as has been the case throughout human history.
a political motivated policy of buying stuffs you don´t need, investing in things that ignore economic basis of 1x1. I doubt your policy is sustainable in the long run.

Do not lie. Unless you says Korea, Japanese, Singapore and Taiwanese are actually American investment, because these countries are American puppies, total America investment in Vietnam is tiny, even compared to Russia or Thailand.

Exxon has promised to invest $10B, but it has not materialized yet. Compared to Phase-1 only of Formosa, a Taiwanese company, investment in Ha Tinh Formosa Steel Complex, which amounts to $10B and is already built, it is just equal. Not to mention Phase-2, which amounts to $10 - 20B. A single electronic plant by Korea in Thai Nguyen, Bac Giang or Haiphong now costs $1 - 2B, a 1000MW thermo power plant costs roughly $2B, then you can see that $10B is not big.

Aside from this project, which is now on paper, and Intel plant ($1B), I do not see any big American investment in Vietnam.
the reason why the US and other western companies from UK, Germany and France haven´t invested in huge sum in VN yet has to do with VN economic structures, not because lack of money. but should VN continue to progress towards modernization, skilled labour force, supply chains, in 10 years we may see Boeing setting up factories, Mercedes opening car assembly plants in our country, instead of in China.
 
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PM Lee Hsien Loong: Singapore's ties with Vietnam prospering

HO CHI MINH CITY - Singapore's ties with Vietnam are prospering and there are opportunities for Singaporeans here, Prime Minister Lee Hsien Loong said on Tuesday (March 21).

And as Singapore undergoes economic transformation, it is crucial to seize opportunities in the region in order to grow, he told some 280 Singaporeans staying in Ho Chi Minh City at a dinner reception.

"If we are to prosper, we have to be able to go overseas and venture and take opportunities and uncertainties," Mr Lee said.

Deepening Singapore's international connections was one of the strategies set out by the Committee on the Future Economy in its report released last month.

Mr Lee added that Vietnam and Ho Chi Minh City have progressed since his last visit to the city more than 10 years ago, and he hopes there will be more flights between Vietnam and Singapore.

He arrived in Vietnam on Tuesday morning for a four-day visit, and joined Singaporeans for dinner at the Intercontinental Asiana Saigon hotel, where they tucked into favourites such as nasi lemak, satay and pandan chiffon cake.

There are 937 Singapore projects and over 2,000 Singaporeans working in Ho Chi Minh City. "The fact that you're all here shows that the adventurous spirit in Singapore is alive and well," said Mr Lee.

A Singaporean pioneer in Vietnam is Mr Low Kok Chiang, 71, who runs an organic produce business with his son Patrick, 28.

They grow some 120 varieties of fruits and vegetables such as cabbages, tomatoes, and kale in Da Lat city in the central highland region of Vietnam, and sell them at their two-year-old outlet called 5th Element in Ho Chi Minh City.

Another outlet is opening this weekend and they hope to have a third by the middle of this year. Their goal is to scale up production eventually so they can export vegetables back to Singapore and open an outlet there.

"We see the Mekong delta as the last frontier for major food sources in Asia... and we want to make safe and healthy vegetables accessible," said the elder Mr Low, who has lived in Vietnam for 31 years and started growing produce in 2003.

Patrick, who moved to Vietnam seven years ago after completing his National Service, said they hope to expand their farm land beyond the current four hectares, which lets them harvest about half a tonne of produce a day.

"It's a challenging business if you talk about profitability, so it comes down to passion," he said.

Passion is also what drove Mr Poh Wei Ye, 33, to start an orphanage in the province of Vung Tau in north-east Vietnam. He grew to love helping street children after spending six months backpacking through the developing countries in South-east Asia seven years ago, after losing his mother to cancer. He and a local nun set up an orphanage, which now shelters 20 children.

"I want to see the kids able to continue to go to school, so that they don't have to work in a coffee shop or a factory and be trapped in the poverty cycle," he said.

http://www.straitstimes.com/politics/pm-lee-hsien-loong-singapores-ties-with-vietnam-prospering

Happy to see Singaporeans helping to alleviate child poverty in developing countries in the region. Children are the future pillar of the country and should at least be given basic education.
 
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not because lack of money
Wrong, investment is always about money, or lack of it, you don't see Greece or Spain or Brazil as active global investors for a reason.

Let's see the fundamental of international financials. Outbound FDI is one part of a nation's owned external Assets, alongside with Portfolio, Financial Derivatives, Others (e.g. Loans, Trade Credits), Reserves, these are standard IMF classification. Same structure on the opposite side - Liabilities - owned by foreign nations. Followings are some samples:

Therefore naturally, nations with large Assets and small Liabilities have more resources to conduct outbound FDI. Note, those owning more international assets than liabilities they owe are called Creditor Nations, largest ones are Japan, Germany, China Mainland, Hong Kong, Taiwan, Switzerland, Norway, Netherlands, Singapore, Saudi Arabia and GCC states. In the opposite it's the longer list of Debtor Nations, I'll leave it to you to find out the names, most nations are.

Moreover, Assets and Liabilities do change over time, see Current Account. Again, naturally nations with Current Account surplus have steady stream of resources to conduct outbound FDI. Nations with largest current account surplus include China Mainland, Germany, Japan, South Korea, Netherlands, Taiwan, Switzerland, Russia, Singapore, Norway. Likewise, you can find out the long list of nations with current account deficit.
 
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