Chinese foreign direct investment (FDI) is pouring into Vietnam at an impressive pace, with over $1.47 billion in registered capital in just the first quarter of 2025—a 68.5% surge compared to the same period last year. Among the wave of projects, two major high-tech manufacturing facilities have just broken ground in Bac Ninh, signaling a strategic shift in Chinese capital towards more advanced industries.
At the end of March, Bac Ninh welcomed the Victory Giant Technology Vietnam Plant, a $520 million project by Victory Giant Technology Co., Ltd. from Guangdong, China. The factory will focus on research, development, and production of printed circuit boards (PCBs) for cutting-edge sectors such as artificial intelligence, big data, green energy vehicles, aerospace, medical equipment, and next-generation communications.
The second project is a $120 million high-precision components manufacturing plant by Green Precision Manufacturing Vietnam Co., Ltd. This Chinese high-tech firm specializes in structural components for consumer electronics including speakers, smartphones, tablets, and e-payment devices.
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According to the Foreign Investment Agency (Ministry of Planning and Investment), China ranked as Vietnam’s second-largest source of newly registered FDI in Q1 2025, with $1.23 billion across 19 of 21 economic sectors and projects spread over 55 of Vietnam’s 63 provinces and cities. By the end of 2024, China had a total of 5,111 valid projects in Vietnam, with accumulated registered capital exceeding $30.83 billion.
Importantly, experts note a remarkable improvement in the quality of Chinese investments. At the 2025 Canton Fair Promotion Seminar, VCCI Vice President Vo Tan Thanh remarked that Chinese FDI has evolved from traditional sectors like textiles and footwear to now targeting high-tech manufacturing, renewable energy, infrastructure, electronics, and electric vehicles.
“Many Chinese enterprises with global ambitions are launching large-scale projects in Vietnam, contributing significantly to the country’s industrialization and modernization, while also creating thousands of jobs and facilitating technology transfer,” Mr. Thanh emphasized.
Looking ahead, major Chinese state-owned enterprises such as CRCC (China Railway Construction Corporation) and PowerChina are proposing involvement in large-scale transportation infrastructure projects in Vietnam, including the Lao Cai – Hanoi – Hai Phong railway, the Hanoi – Lang Son line, and the Hai Phong – Quang Ninh – Mong Cai corridor. These firms have also expressed interest in participating in the North-South high-speed railway and urban railways in Ho Chi Minh City.
In a September 2024 report, HSBC noted that among its Chinese clients eyeing Southeast Asia, Vietnam ranked just behind Singapore as a preferred expansion market. “Vietnam is an increasingly attractive destination for Chinese investors, thanks to its strong economic ties and complementary market strengths,” the bank stated.
Sophie Dao, Senior Partner at GBS, a firm supporting foreign investors in Vietnam, commented: “This new wave of Chinese FDI reflects a major turning point. We’re seeing a transition from labor-intensive projects to high-tech, value-added industries. It’s not just about capital—it’s about collaboration, innovation, and long-term growth. Vietnam is clearly positioning itself as a strategic partner in the global supply chain reshaping.”
Stay tuned to Vietnam Insider for more updates on Vietnam’s fast-changing investment landscape.
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Source: Vietnam Insider