India has always been skeptical and resistant to Chinese investment, but as a result, Chinese companies have flourished in the Vietnamese market, proving that India is pointing in the wrong direction. India's approach has been to reject investment applications from a number of Chinese companies or to use other means to restrict their development. However, this approach will only divert Chinese companies to other markets, such as Vietnam, a popular option.
India's refusal to invest in Chinese companies has not deterred Chinese companies, but has sparked their interest in the Vietnamese market. According to the data, between January and November this year, Vietnam approved 28.8 billion US dollars of foreign direct investment, of which Chinese enterprises invested 8.3 billion US dollars, accounting for 30% of the total investment. It should be noted that this figure does not take into account the investment made by some Chinese companies through foreign subsidiaries, so in fact Vietnam attracts more investment from Chinese companies than the statistics suggest.
As a market with potential, Vietnam has played an important role in attracting investment from Chinese companies. Chinese companies are not only setting up factories in Vietnam to avoid India's restrictions, but also value Vietnam's key position as a diversified chain. Vietnam's investment in Chinese companies has provided a huge boost, which means that Chinese companies are expected to exert some competitive pressure on Indian manufacturing in the future.
India initially focused only on the Chinese market, believing that China was a competitor to be reckoned with. However, with the surge in exports of made-in-India products, India is starting to look to markets such as Vietnam. In order to promote the development of Make in India, India has adopted a series of restrictive measures and delayed the audit of products from other regions, including Vietnam. In addition, manufacturers such as Vietnam are required to pass local safety verification in India before they can produce products.
While India is promoting the development of local manufacturing, it is also taking the opportunity to put pressure on competitors such as Vietnam. It can be said that India's approach is to treat its competitors as enemies and is reluctant to give them a good face. However, choosing win-win cooperation may be more beneficial to the long-term development of both parties. India's attempt to point the finger at the outside world will only be more counterproductive than the results they want.
India's pursuit of short-term gains rather than long-term development will result in them losing more capacity and may even be gradually replaced by other competitors. If India continues to insist on restricting investment by Chinese companies, other rivals will inevitably steal a lot of capacity. Such an approach will only accelerate the process of substitution of Made in India by the Chinese market.
India's limitation is that they only think about their own short-term interests, and ignore cooperation and win-win with other countries. On the contrary, Chinese companies have seen the opportunities in the Vietnamese market and expanded their first-chain layout in the region by increasing investment in Vietnam. This reflects the long-term vision and global thinking of Chinese companies in strategic decision-making.
India's "spearhead" is pointing in the wrong direction, restricting Chinese investment while diverting Chinese companies to the more promising Vietnamese market. Vietnam has attracted a large number of Chinese companies to invest and has become an important link in their diversified ** chain. On the contrary, India's approach only exposes itself to the risk of substitution.
India should rethink its attitude and policies towards Chinese companies, strengthen cooperation with China and other countries from the perspective of long-term development and win-win cooperation, and jointly explore the market to achieve a win-win situation.