There has been a slew of Chinese FDI projects running in Vietnam, which experts warn would hamper the industry here. They say regulations need to be tightened to prevent Chinese investment flow into the country, as, according to them, Chinese investment comes with cheap labour, intensive use of natural resources and destruction of the environment, and eventually development of Vietnam’s trade and industry as a whole is hampered.
In this regard, Dr Nguyen Duc Thanh, Director of the Institute of Economic and Policy Research, Hanoi National University, said Chinese capital was flowing into countries across the world, not only to Vietnam, but since Vietnam is a neighbouring country, so the flow is stronger and faster.
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One of the most notable names among Chinese investors in Vietnam is Texhong Group, with US$ 300 million fibre plant in Quang Ninh Province. The group has planned to invite around 200 Chinese investors, with an aim to turn the province (Quang Ninh) into a close textile-garment chain in Vietnam.
Experts have been following this for a long time, because the Chinese investors has capital, but allegedly comes with outdated technology, exploiting only the natural resources of Vietnam that will eventually harm Vietnam’s environment.
