Analysis: Two Big Questions Face Chinese Firms Investing in Vietnam

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.