Published 13 Nov 2024

Le Hong Hiep

Chinese investments in Vietnam have surged. But they bring not only opportunities but also challenges for the latter.

Since the US–China trade war started in 2017, Vietnam has become an increasingly popular choice for multinational corporations (MNCs) seeking to diversify their supply chains away from China to mitigate geopolitical risks. According to the General Statistics Office (GSO) of Vietnam, foreign investors pledged to invest a total of US$248.3 billion in 19,701 projects in the country (see Figure 1) for the 2017-2023 period. This amount accounts for a staggering 52.8 per cent of Vietnam’s cumulative registered foreign direct investment (FDI) since the country adopted economic reforms in the late 1980s. This trend has continued in 2024, with the country recording a remarkable US$27.26 billion in new registered FDI by the end of October.