Chinese manufacturing companies are targeting the “Made in Vietnam” dividend
Abstract: The free trade agreement and the Trans-Pacific Partnership (TPP) signed between Vietnam and the EU last year will give the country the opportunity to enter a market with a combined GDP of US$44 trillion. Although the fate of the TPP is currently unknown, Chinese companies have made plans in advance to try to take advantage of Vietnam’s lower factory wages. Importantly, setting up factories in Vietnam would give Chinese manufacturers access to trade agreements that China is not currently a party to. Nguyen Sun Quan, chairman of the Vietnam Timber and Forest Products Association, said: “So far
Key words:
The free trade agreement and Trans-Pacific Partnership Agreement(TPP) signed between Vietnam and the EU last year will give the country the opportunity to enter GGDPadded to a44trillion dollar market. Although the fate ofTPP is currently unknown, Chinese companies have made plans in advance to try to take advantage of lower factory wages in Vietnam. Importantly, setting up factories in Vietnam would give Chinese manufacturers access to trade agreements that China is not currently a party to. Nguyen Sun Quan, chairman of the Vietnam Timber and Forest Products Association, said: “So far, 30many Chinese timber companies have consulted me this year.”
China’s capital inflows into Vietnam in 2015 were higher than 1 ago Increased1fold to US$744USD, of which80%In the second half of the year – shortly before Vietnam signed the FTA andTPPwith the EU. According to the requirements of these two agreements, textile manufacturers must use yarn and dyes from local countries or countries within trading blocs. For Chinese companies in Vietnam, this means ensuring access to local supply chains. To this end, China’s Tianhong Textile Group is currently building a $450450industrial park in northern Vietnam.
It is true that the US presidential election has put a big question mark on TPP. But even ifTPP’s future remains uncertain, Chinese companies could still seek to leverage Vietnam’s power as an emerging industrial and trading power.
Ironically, agreements such as TPP are intended to promote U.S. influence in Asia and curb China’s influence. In fact, However, it has encouraged Beijing’s external contacts. Rising investment from China is changing Vietnam in other ways, too.
In Vietnam, anti-China sentiment has a long history. But there are signs that Vietnamese are now putting nationalism aside and learning Chinese in the hope of finding jobs with Chinese companies and investors. College student Mingying takes Chinese classes at night, “I don’t like China or Chinese people, but more and more of their companies are coming here. Being able to speak Chinese can increase my employment opportunities and help me get a good job with good pay.” ”
AAA
The free trade agreement and Trans-Pacific Partnership Agreement(TPP) signed between Vietnam and the EU last year will give the country the opportunity to enter GGDPadded to a44trillion dollar market. Although the fate ofTPP is currently unknown, Chinese companies have made plans in advance to try to take advantage of lower factory wages in Vietnam. Importantly, setting up factories in Vietnam would give Chinese manufacturers access to trade agreements that China is not currently a party to. Nguyen Sun Quan, chairman of the Vietnam Timber and Forest Products Association, said: “So far, 30many Chinese timber companies have consulted me this year.”
China’s capital inflows into Vietnam in 2015 were higher than 1 ago Increased1fold to US$744USD, of which80%In the second half of the year – shortly before Vietnam signed the FTA andTPPwith the EU. According to the requirements of these two agreements, textile manufacturers must use yarn and dyes from local countries or countries within trading blocs. For Chinese companies in Vietnam, this means ensuring access to local supply chains. To this end, China’s Tianhong Textile Group is currently building a $450450industrial park in northern Vietnam.
It is true that the US presidential election has put a big question mark on TPP. But even ifTPP’s future remains uncertain, Chinese companies could still seek to leverage Vietnam’s power as an emerging industrial and trading power.
Ironically, agreements such as TPP are intended to promote U.S. influence in Asia and curb China’s influence. In fact, However, it has encouraged Beijing’s external contacts. Rising investment from China is changing Vietnam in other ways, too.
In Vietnam, anti-China sentiment has a long history. But there are signs that Vietnamese are now putting nationalism aside and learning Chinese in the hope of finding jobs with Chinese companies and investors. College student Mingying takes Chinese classes at night, “I don’t like Chinese.or the Chinese, but their companies are coming here more and more. Being able to speak Chinese can increase my employment opportunities and help me get a good job with good pay. ”
AAA
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