Chinese FDI: Shifting Toward Higher and More Sustainable Value

Despite having operated for just five years, Lien Ha Thai Industrial Park (Green iP-1) has demonstrated that a clear strategy, coupled with steady development, can create a model industrial park. Its success has firmly positioned Thai Binh province as a favored destination for foreign direct investment (FDI) in Vietnam. Regarding Chinese investment in Vietnam, including its presence in Green iP-1, Vietnam Business Forum interviewed Mr. Bui The Long, General Director of Green i-Park Corporation, the developer of Green iP-1.

Green i-Park Corporation is honored with the Vietnam Gold Star Award 2024

How do you evaluate the current trends in Chinese FDI in Vietnam? In your opinion, which sectors, industries, and localities are likely to attract the most investment?

Vietnam is China’s largest trading partner in ASEAN, and China is one of its top investors. The steady rise in Chinese FDI, both in scale and quality, underscores Vietnam's strong investment appeal. Chinese FDI in Vietnam stems from two key sources: direct investments by Chinese enterprises and capital shifts driven by the "China +1" strategy.

Investing in Vietnam offers Chinese investors cost advantages, expanded production capacity, and enhanced access to global markets. With Chinese enterprises increasingly exploring new opportunities amid the trade war and economic adjustments, Chinese FDI is likely to lead in total investment capital in Vietnam in the near future.

While manufacturing will remain dominant, Chinese FDI is expected to shift toward high-tech industries, research and development (R&D), and sustainable production. Notably, China is channeling substantial investment into Vietnam’s electronic components, high-tech manufacturing and renewable energy sectors, including solar and wind power, which will drive its total FDI growth. Chinese investors are actively exploring opportunities in Vietnam’s electric vehicle market.

Alongside established industrial hubs like Bac Ninh, Hai Phong and Quang Ninh, Thai Binh is becoming a favored investment destination. Its favorable seaport connectivity and attractive incentives from the Thai Binh Economic Zone are driving increased investor interest.

I believe that the rising inflow of Chinese FDI into Vietnam is a strong trend likely to continue in the near future. However, to fully capitalize on this opportunity, Vietnam must further enhance its investment environment while proactively managing risks and challenges, ensuring that the growth of Chinese FDI delivers sustainable benefits to Vietnam’s economy and society.

The Thai Binh Provincial Delegation, including leaders from Green i-Park Corporation, actively engages in the 2024 investment promotion program in Shenzhen, China

In recent years, Chinese FDI into Vietnam has increasingly focused on large-scale, high-tech projects. What do you think about this shift?

The transition from "quantity" to "quality" in Chinese FDI into Vietnam is a promising trend, reflecting investors' focus on high-value, sustainable industries.

In the wake of the US-China trade war and global supply chain disruptions, many Chinese companies have shifted production to Vietnam, drawn by its favorable location and tariff incentives.

In recent years, China has increasingly invested in high-tech industries in Vietnam, focusing on industrial components, electronics, automotive and green energy with major investors like BOE, Goertek, BYD, Radian, Brotex, Wingtech, Deli, Trina Solar and Jinko Solar. These large-scale, high-tech projects are set to accelerate the growth of emerging sectors in Vietnam, including information technology, electronics, automation and renewable energy.

Moreover, these projects will facilitate technology transfer, enhancing product and service quality while diversifying Vietnam’s economy. They will generate high-quality jobs, reduce reliance on traditional industries and strengthen Vietnam’s position in the global supply chain. Additionally, increased investment in R&D will drive innovation, foster high-value product development, and elevate Vietnam’s competitiveness in the international market.

The shift in Chinese FDI toward high technology presents both opportunities and competitive challenges for domestic enterprises. To stay ahead of regional competitors like Thailand, Malaysia and Indonesia, Vietnam must support local businesses in upgrading production capabilities, enhancing logistics infrastructure, reducing transportation costs, and refining its legal framework. Investing in workforce training, particularly in high-tech fields like integrated circuits, will position Vietnam as a leader in the ongoing supply chain relocation from China.

Overall, Chinese FDI presents opportunities for Vietnam to drive economic growth and strengthen its supply chain. However, to fully capitalize on this trend, Vietnam must further enhance its investment environment, develop a highly skilled workforce, and accelerate technology transfer, positioning itself higher in the global value chain.

Leaders of Green i-Park Corporation at an investment promotion event in Shenzhen, China in 2024

Over the past five years of investment attraction, what achievements has Green iP-1 obtained, particularly in attracting Chinese FDI?

From the outset, our goal has been to develop a green, modern industrial park that prioritizes electric technology, electronics and automotive industries while ensuring minimal environmental impact.

Amidst positive economic transformations and the pursuit of Net Zero goals, we focus on developing the industrial park in alignment with ESG (Environmental, Social, and Governance) standards. Green iP-1 is designed with state-of-the-art infrastructure to meet investor demands and global trends.

Pursuing sustainable development, Green iP-1 integrates advanced green technologies to minimize environmental impact. The park prioritizes renewable energy and water conservation, ensuring industrial growth while preserving the natural ecosystem. A 100-kW rooftop solar power system has been installed to reduce emissions and reliance on non-renewable energy. Additionally, nearly 10,000 trees have been planted to enhance air quality and create green spaces for workers and the surrounding community. These programs form the foundation for Green iP-1’s long-term growth, delivering lasting benefits to both businesses and society.

Over four years of attracting investment, Green iP-1 has obtained remarkable achievements, drawing significant interest from both domestic and international investors, particularly from China. Currently, the industrial park boasts 51% occupancy, with nearly 31 investors from South Korea, Taiwan (China) and China, contributing a total investment capital of nearly US$1.6 billion. Investors are drawn to Green iP-1 for its location, competitive labor costs, tax incentives, strong government support and our dedicated, experienced team. We are committed to accompanying investors throughout their journey, offering comprehensive support from initial surveys to full-scale operations within the industrial park.

Chinese FDI at Green iP-1 has seen substantial growth, with 15 Chinese investors contributing nearly US$370 million, accounting for 23% of total attracted investment capital. Many Chinese companies, particularly in electronics, automotive assembly and consumer goods manufacturing, are actively exploring investment opportunities at the park. In 2025, we are confident that Green iP-1 will remain a prime destination for Chinese investors.

Office of Green i-Park Corporation at Lien Ha Thai Industrial Park (Green iP-1)

In celebration of the 75th anniversary of Vietnam-China diplomatic relations, what message or commitments does Green i-Park wish to convey to its Chinese partners and investors?

On the 75th anniversary of Vietnam-China diplomatic relations, Green i-Park extends its heartfelt congratulations to our Chinese partners and investors.

We are willing to foster strong partnerships with Chinese investors, providing comprehensive support to drive investment in Vietnam, particularly in electronics, high technology, green manufacturing and renewable energy, while enhancing efficiency, sustainability and environmental responsibility.

Green i-Park remains committed to investing in modern infrastructure and delivering high-quality services to build a green, sustainable industrial ecosystem. We offer the most competitive incentives to create an optimal investment environment for Chinese investors in Vietnam.

We look forward to strengthening our partnership with Chinese investors and are confident that this collaboration will continue to develop, fostering economic cooperation and shared prosperity for both countries.

Thank you very much!

By Thao Van, Vietnam Business Forum