Firms suc­ceed­ing in Viet­nam

Stronger bi­lat­eral re­la­tions seen help­ing

Global Times - - Front Page - By Xie Jun and Zhang Hong­pei

Chi­nese busi­ness­men are mak­ing se­ri­ous money in Viet­nam, as Viet­nam’s eco­nomic de­vel­op­ment has pro­vided many busi­ness op­por­tu­ni­ties, ac­cord­ing to sev­eral Chi­nese en­trepreneurs in Viet­nam.

Ou Kui, chair­man of Viet­nam Ya­nian Cloth­ing Co, a cloth­ing man­u­fac­turer and ex­porter in Viet­nam, said that his com­pany’s or­der quan­ti­ties have been able to “guar­an­tee 20 per­cent growth” an­nu­ally in the last few years.

Chen Xiy­ing, chief rep­re­sen­ta­tive of Dong­fang Elec­tric Corp’s Viet­nam of­fice, also noted that Dong­fang Elec­tric has car­ried out many hy­dropower and ther­mal power projects in Viet­nam.

“So far, power equip­ment man­u­fac­tured by Dong­fang Elec­tric in Viet­nam has a to­tal ca­pac­ity of 10 mil­lion kilo­watts,” he said.

Big in­dus­try, good busi­ness

The Chi­nese busi­ness­men the Global Times talked to said that cer­tain busi­ness sec­tors in Viet­nam are de­vel­op­ing very fast, which has of­fered op­por­tu­ni­ties for Chi­nese busi­ness­men there.

For in­stance, Chen said that Viet­nam’s power in­dus­try is still in the midst of a “ris­ing pe­riod” cur­rently.

“Chi­nese power com­pa­nies en­tered Viet­nam’s power con­struc­tion mar­ket around a decade ago. Nowa­days, the north­ern ar­eas in Viet­nam no longer suf­fer from fre­quent black­outs – this has a lot to do with projects com­pleted by Chi­nese com­pa­nies,” Chen said. “Now that the Viet­namese econ­omy is con­tin­u­ing to grow, there is still de­vel­op­ment space and mar­ket de­mand in the power sec­tor.”

Ou also said that the cloth­ing in­dus­try in Viet­nam is “boom­ing,” with the sec­tor’s rev­enue cur­rently ac­count­ing for about 15 per­cent of the coun­try’s an­nual GDP.

“We chose Viet­nam to be our man­u­fac­tur­ing base for a num­ber of rea­sons: The coun­try has abun­dant re­sources; it has a ma­ture la­bor force; and the Viet­namese gov­ern­ment has rolled out a se­ries of pol­icy bonuses for over­seas com­pa­nies,” Ou said.

He added that th­ese fac­tors have prompted many do­mes­tic cloth­ing com­pa­nies to move to Viet­nam.

Warm­ing-up in­ter­ac­tion

An­other fac­tor aid­ing Chi­nese busi­nesses in Viet­nam is the fact that the two coun­tries’ eco­nomic and trade re­la­tions are warm­ing up rapidly.

China’s ex­ports to Viet­nam surged by 16.3 per­cent year-on-year to $56.36 bil­lion in the first 10 months this year, while im­ports in­creased by 30.1 per­cent, ac­cord­ing to Chi­nese cus­toms data pub­lished on Wed­nes­day.

China’s in­vest­ment in Viet­nam in 2016 also surged by 130 per­cent on a yearly ba­sis to $1.28 bil­lion, data re­leased by the Min­istry of Com­merce showed on Novem­ber 2.

Gu Xiaosong, an ex­pert on South­east Asian stud­ies at the Guangxi Academy of So­cial Sciences, said that in the past, Sino-Viet­namese po­lit­i­cal fric­tion neg­a­tively im­pacted the two coun­tries’ eco­nomic re­la­tions for quite a long time, and the sit­u­a­tion hit a low point in 2014, when anti-China protests broke out in cer­tain parts of Viet­nam.

“The fric­tion around 2014 fright­ened many Chi­nese busi­ness­men away from in­vest­ing in Viet­nam. But the two coun­tries’ re­la­tions have warmed up in the last two years. I be­lieve there will be a big wave of in­vest­ment from China into Viet­nam, par­tic­u­larly with the progress of the Belt and Road ini­tia­tive,” Ou told the Global Times Thurs­day.

Gu also said that the two coun­tries’ eco­nomic re­la­tions have got back on track in the past two years.

“For one thing, both China and Viet­nam are prompt­ing eco­nomic de­vel­op­ment by ex­pand­ing over­seas eco­nomic co­op­er­a­tion. Also, changes in the global po­lit­i­cal sit­u­a­tion – such as the US pay­ing less at­ten­tion to the Asia-Pa­cific re­gion after Don­ald Trump took of­fice as US pres­i­dent – have im­pelled Viet­nam to em­brace prod­ucts, busi­nesses and cap­i­tal from China,” Gu told the Global Times on Thurs­day.

“Viet­nam can’t do without help from China to carry out its eco­nomic con­struc­tion. In the fu­ture, at least in the short term, eco­nomic re­la­tions be­tween the two coun­tries will con­tinue to pro­ceed smoothly,” Gu noted.

Ou said that chal­lenges still re­main for Chi­nese busi­nesses in Viet­nam, in­clud­ing a lack of project in­for­ma­tion, the lan­guage bar­rier and ris­ing costs.

Chen said that the big­gest prob­lem is still how the two sides adapt to each other in com­plet­ing the projects.

“When we started to do busi­ness in Viet­nam, we needed to un­der­stand lo­cal laws and busi­ness reg­u­la­tions, while the Viet­namese side needed to un­der­stand our tech­no­log­i­cal fea­tures and con­struc­tion habits. But after sev­eral years, we have got to un­der­stand each other bet­ter and busi­ness has be­come more ef­fi­cient.”

“The coun­try has abun­dant re­sources; it has a ma­ture la­bor force; and the Viet­namese gov­ern­ment has rolled out a se­ries of pol­icy bonuses for over­seas com­pa­nies.” Ou Kui Chair­man of Viet­nam Ya­nian Cloth­ing Co

Photo: VCG

A bridge con­nect­ing Hekou in South­west China’s Yun­nan Province with Viet­nam

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.