How did Chinese companies accelerate their investment focus from India to Vietnam?From January to November this year, Vietnam's approved foreign direct investment (FDI) grew to US$28.8 billion, of which US$8.3 billion was from China, a move that drew widespread attention, according to Japan**.
Obviously, Chinese companies are actively deploying in the Vietnamese market, and the reasons behind this are worth pondering. First of all, India has been cautious about investing in Chinese companies, and has even rejected some investment applications from Chinese companies. This has not only weakened the attractiveness of the Indian market, but has also led to an accelerated shift of Chinese companies to their target locations.
India's short-sighted approach could cost them more opportunities for cooperation, and this loss is bound to put some pressure on the Indian manufacturing sector. Second, India has adopted similar restrictions on manufacturers in Vietnam and other regions in an attempt to curb the impact of external competition on its own manufacturing industry.
However, this practice has led to more attention and investment by Chinese companies in the Vietnamese market. Vietnam is attracting more and more Chinese companies, which will put some competitive pressure on India's manufacturing industry in the future.
There are all kinds of indications that India's actions may only accelerate the layout and expansion of Chinese companies, but harm India's own long-term interests. In the context of globalization and industrial division of labor, no country should adopt a closed and conservative attitude, but should seek a win-win development model.
Therefore, should India re-examine its own policies and adjust the restrictions on foreign investment in a timely manner, so as to better integrate into the global industrial chain and obtain more development opportunities? What do you think of this phenomenon?Feel free to leave a comment and share your views!