BUSINESS

Analysis: Two Big Questions Face Chinese Firms Investing in Vietnam

By Zhang Erchi in Hanoi and Ding Yi in Beijing

Published: Sep. 3, 2025 6:43 p.m. GMT+8

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Foxconn's factory in ‌Beining, capital of Bac Ninh province. Photo: Zhang Erchi/Caixin

Chinese companies need to pay special attention to choosing suppliers and factory sites when investing in Vietnam, analysts said, as the Southeast Asian country sharpens its policies for attracting foreign investment so it can upgrade its industry.

The Vietnamese government on Monday enacted a decree to use government subsidies to integrate more industries into domestic supply chains, with the ultimate goal of reducing the country’s dependence on imports. The decree focuses on supporting upstream suppliers vital to the development of the textile and garment, electronics and automotive industries, according to information provided by Deloitte LLP.

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Vietnam enacted subsidies to boost domestic supply chains and reduce import dependence, focusing on key industries like textiles, electronics, and automotive.
Revised tax incentives from October 2024 will favor investments in targeted sectors such as semiconductors and AI data centers, but only in specified locations.
Chinese investors must carefully choose regions and factory sites, weighing land costs and local industry strengths, with less popular provinces offering lower costs and abundant labor.

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Who’s Who

Deloitte LLP: Deloitte LLP (德勤) provided information regarding a decree enacted by the Vietnamese government. This decree uses government subsidies to integrate more industries into domestic supply chains, aiming to reduce dependence on imports. It specifically supports upstream suppliers vital to the textile and garment, electronics, and automotive industries.

PricewaterhouseCoopers LLP: PricewaterhouseCoopers LLP (普华永道) is a professional services network. A document from them indicates that Vietnam will implement revisions to the Corporate Income Tax Law on October 1st. These revisions will offer certain income tax exemptions exclusively to companies investing in government-designated industries and locations.

Samsung Electronics Co. Ltd.: Samsung Electronics Co. Ltd. is mentioned as a company supported by the electronics supply chains in northern Vietnam. This region is known for its developed electronics industry, indicating that Samsung has a presence and relies on the manufacturing and supply infrastructure available there.

Apple Inc.: Apple Inc. is mentioned in the context of electronics supply chains in northern Vietnam. The region is known for supporting such companies, which could be a factor for businesses considering investment locations in Vietnam.

WHA Corporation PCL: WHA Corporation PCL is a Thai industrial property developer. Its Vice President, Anchalee Prasertchand, notes that less popular Vietnamese provinces offer good options for foreign investors due to lower land prices and sufficient labor, enabling the creation of supply ecosystems. WHA Corp. has built several industrial parks in Vietnam.

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