Tran Thi Hoan, associate director for the north at headhunter Navigos Search, says the demand for workers with Chinese proficiency has risen sharply this year and supply is inadequate.

Recruitment and payroll services provider Adecco concurs, says more Chinese companies are relocating due to the China Plus One strategy that involves diversifying production chains.

There used to be concern that foreign direct investment from China had not reached its full potential given the two countries’ long trading partnership and proximity, but this situation has changed noticeably in recent years.

According to the Foreign Investment Agency, China invested $4.47 billion in Vietnam last year, up 77.6% from 2022 and a 255% jump from 2018.

China also has the largest number of new projects of any foreign country this year, 540, accounting for 29.7%, as it invested $1.22 billion.

As of July 20 China had 4,754 projects with $28.5 billion registered capital, making it the sixth biggest investor.

While Chinese enterprises used to mostly invest in food processing and manufacture of garments, footwear and household goods, they have now turned to sectors like technology, electronics, renewable energy, electric vehicles, and e-commerce.

Some of their notable ventures include auto giant Chery’s joint project with Vietnamese conglomerate Geleximco, a $800 million plant that produces Omoda & Jaecoo cars.

Beijing-based electronics components producer BOE Group recently announced it would invest $277.5 million to build a smart terminal equipment factory in the Phu My 3 Specialized Industrial Park in Ba Ria-Vung Tau Province.

Roger Luo, director of Alibaba for the Asia-Pacific, said last week that Vietnam would be the first country in the region where the firm plans to introduce comprehensive logistics services.

"Since deciding to invest [in the country], we have identified Vietnam as a very important market. By 2025, in addition to completing previous services, we will also continue to expand our team in Ho Chi Minh City, Hanoi and other localities to enhance support for Vietnamese exporters."

HSBC’s Yeganeh says Vietnam stands to benefit from the supply chain shifts occurring in the region.

Vietnam's trade surplus with other regions has surged due to increased investment from China, he says.

Boosting quality key to enhancing partnership

Experts believe investment and trade between Vietnam and China will grow stronger, driven by bilateral cooperation and multilateral agreements they are part of such as the RCEP and the ASEAN-China Free Trade Agreement.

However, China is becoming increasingly strict with both trade and investment, requiring Vietnam to improve quality in all aspects.

Nguyen Dinh Tung, CEO of Vina T&T Group, one of the top fruit exporters, says his company's exports to China decreased in the first half of the year due to stricter control on cadmium residues in products.

"Wary of the stricter norms, my company did not want to rush into exporting large quantities."

With the signing of several protocols during the Communist Party General Secretary and State President To Lam’s visit to China, Vietnam is now allowed to export frozen durian and fresh coconut to that market.

Tung expects this to provide a big fillip to exports.

Concurring, Vy says businesses need to be thorough in all stages from sourcing to packaging and storage to meet China’s stricter requirements.

Source: VnExpress