Vietnam saw an annual growth rate of 17% in the Chinese FDI during the 2015–2022 period. In the first 11 months of 2022, China stood fourth among foreign investors in Vietnam.
According to Agriseco, the low labour cost in Vietnam and its close geographical proximity are among Vietnam’s advantages in attracting Chinese FDI.
The Vietnamese sectors of mechanical engineering, textiles, footwear, electronics, pangasius processing, and automobiles will benefit the most thanks to China’s loosened COVID-19 prevention measures.
Particularly, China's reopening will help Vietnamese garment and textile firms to access material sources more easily. Between January and November 2022, Vietnam imported around half of its garment and textile materials from China.
During China's closure due to the COVID-19 pandemic, many Vietnamese garment and textile businesses struggled with material shortage.
