Imports with outdated technologies from China flood market

Last update 08:30 | 14/06/2017

VietNamNet Bridge – The import of machines, equipment and spare parts from China in the first four months of the year increased by 40 percent over the same period last year. Of this, machine imports increased by 31 percent, or $803 million, reaching $3.4 billion.

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In 2016, China was also the biggest supplier of machine, equipment and spare parts for Vietnam with export turnover of $9.25 billion.

Luong Minh Khoi from MPI warned that it would be a danger for Vietnam if it continues importing outdated waste technologies form China.

China has set up an ambitious plan to replace low technologies with advanced technologies, striving to have hi-tech content in products at 70 percent by 2025.

In implementing the plan, Chinese factories using outdated technologies will try to sell old machines and transfer the technologies to less developed countries. Vietnam is one of the destinations.

In 2016, China was also the biggest supplier of machine, equipment and spare parts for Vietnam with export turnover of $9.25 billion.

Nguyen Tri Hieu, a respected economist, said that outdated technologies will become redundant in China as the country shifts to high technologies, and it is difficult for Vietnam to avoid the ‘outdated technology wave’ if it still wants to accept cheap things.

Vietnam has become the ‘landing field’ for outdated Chinese technologies.

China is among the 10 biggest foreign investors in Vietnam with 1,600 registered projects capitalized at $11.2 billion. In recent years, China increased the scope of preferential loans for Vietnam when funding industrial projects (textile, garment and dyeing), energy (thermopower) and infrastructure (highways).

China is reducing investment in these fields as they are energy consuming and polluting.

While China has closed 600 coal plants in its country, many China funded plants have opened in Vietnam. In Mekong Delta alone, two thirds of 14 thermopower plants in Mekong Delta are implemented by Chinese contractors.

The Chinese partner contributes 50 percent of capital to the Hai Duong $1.85 billion BOT thermopower plant. In the $2 billion Vinh Tan 1 BOT project in Binh Thuan province, the Chinese partner holds 95 percent of capital.

Asked about solutions to prevent outdated technologies from entering Vietnam, Khoi said it is necessary to supervise large-scale projects, while in the long term, it is necessary to set up standards on technologies and machines to be imported.

In order to do this, Vietnam needs to have independent technical supervision bodies.

Pham Sy Thanh from VEPR suggested that Vietnam should only accept investments from large Chinese investors and reject investments by small enterprises which bring old technologies to Vietnam.

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This entry was posted in China, Foreign Direct Investments - Đầu tư trực tiêp từ nước ngoài and tagged , by Trần Đình Hoành. Bookmark the permalink.

About Trần Đình Hoành

I am an attorney in the Washington DC area, with a Doctor of Law in the US, attended the master program at the National School of Administration of Việt Nam, and graduated from Sài Gòn University Law School. I aso studied philosophy at the School of Letters in Sài Gòn. I have worked as an anti-trust attorney for Federal Trade Commission and a litigator for a fortune-100 telecom company in Washington DC. I have taught law courses for legal professionals in Việt Nam and still counsel VN government agencies on legal matters. I have founded and managed businesses for me and my family, both law and non-law. I have published many articles on national newspapers and radio stations in Việt Nam. In 1989 I was one of the founding members of US-VN Trade Council, working to re-establish US-VN relationship. Since the early 90's, I have established and managed VNFORUM and VNBIZ forum on VN-related matters; these forums are the subject of a PhD thesis by Dr. Caroline Valverde at UC-Berkeley and her book Transnationalizing Viet Nam. I translate poetry and my translation of "A Request at Đồng Lộc Cemetery" is now engraved on a stone memorial at Đồng Lộc National Shrine in VN. I study and teach the Bible and Buddhism. In 2009 I founded and still manage dotchuoinon.com on positive thinking and two other blogs on Buddhism. In 2015 a group of friends and I founded website CVD - Conversations on Vietnam Development (cvdvn.net). I study the art of leadership with many friends who are religious, business and government leaders from many countries. In October 2011 Phu Nu Publishing House in Hanoi published my book "Positive Thinking to Change Your Life", in Vietnamese (TƯ DUY TÍCH CỰC Thay Đổi Cuộc Sống). In December 2013 Phu Nu Publishing House published my book "10 Core Values for Success". I practice Jiu Jitsu and Tai Chi for health, and play guitar as a hobby, usually accompanying my wife Trần Lê Túy Phượng, aka singer Linh Phượng.

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