Post by : Meena Ariff

China’s economic footprint in Vietnam is expanding faster than at any point in recent history, reshaping industries and challenging efforts by Washington to limit Beijing’s influence in the region. After years of caution over technology cooperation, territorial disputes and historical tensions, Vietnam is now opening doors to Chinese companies in sectors previously considered too sensitive. Major telecom firms such as Huawei and ZTE have secured new contracts, Chinese loans are being used to fund high-speed railway projects, and Chinese-made COMAC aircraft have received regulatory approval from Vietnamese authorities.

Analysts say these decisions reflect Vietnam’s strategy of balancing major global powers, but they also warn that growing economic dependence could complicate the country’s relations with Western partners. U.S. tariffs have strained bilateral ties, and many in Hanoi view recent trade measures by Washington as punitive. As a result, Beijing is increasingly seen as a more reliable economic partner offering immediate market access and large investment flows.

Despite foreign pressure advising Vietnam to reduce reliance on Chinese supply chains, imports from China reached approximately $168 billion through November, nearly 30% higher than last year’s total. Much of the import value comes from electronic components later used in goods exported to the U.S., but consumer products including cars and agricultural items are also rising sharply.

A notable driver of this shift is changing public sentiment among Vietnam’s younger generation. While older groups may still carry memories of past conflicts, younger consumers are much more open to Chinese brands in electronics, mobility, e-commerce and social media. The electric vehicle industry is the clearest example of this transformation. Yadea sold more than 36,000 electric scooters in the first ten months of the year, positioning itself as the main challenger to domestic leader VinFast. BYD, one of China’s largest EV manufacturers, is expanding dealerships and charging networks across Vietnam, although detailed sales figures remain undisclosed.

Chinese retail brands and technology platforms are gaining momentum across major cities. In Ho Chi Minh City and Hanoi, new Chinese retail chains are opening at a rapid pace. TikTok has become Vietnam’s leading social shopping platform among younger consumers. Lazada continues to be a top e-commerce choice, while Tencent holds indirect stakes in Shopee and Tiki, giving Chinese investors significant influence over Vietnam’s online retail market.

Investment flows are also shifting from short-term relocations to deeper partnerships. Several Chinese companies are now entering joint ventures with Vietnamese firms and transferring technology—an approach that was extremely rare in previous years. According to industry figures, twelve Chinese companies have already shared or committed to transfer technology to local partners this year, while there were none last year. One standout example is CNTE, backed by major battery producer CATL, which is partnering to build a large energy storage facility projected to export 250 containers annually from late 2026.

From January to November, companies from China and Hong Kong pledged more than $6.7 billion in investments in Vietnam, making China the country’s largest investor. At the DEEP C industrial park, which is one of the largest in northern Vietnam, Chinese tenants now account for 25% of the total, up from only 10% in 2019. Experts note that while some companies initially came to Vietnam to avoid tariffs, many now see long-term prospects in manufacturing, distribution and local consumer markets.

As this economic transformation accelerates, Vietnam faces both opportunities and risks. Chinese funding, technology and market access are boosting industrial growth, but reliance on a single economic partner could carry political and strategic complications in the future. For now, the rapid influx of diverse Chinese projects is reshaping Vietnam’s economic landscape in ways that were difficult to imagine just a few years ago.

#Global News #Business News #World News