Recently, Japan** reported that China's investment boom has shifted from India to enthusiastic investment in Vietnam. This is not unfounded speculation, as the data shows that from January to November this year, Vietnam approved a staggering US$28.8 billion in foreign direct investment, including US$8.3 billion from China.
During the same period, India's iPhone OEM giant Luxshare Precision increased its investment in Vietnam, and BYD, which was forced to turn to Vietnam because of the rejection of its investment in India, began to expand its production scale in Vietnam. It is not difficult to see that Chinese companies are accelerating the construction of the first chain in Vietnam.
The emergence of such a shift can only show that India's "spearhead" is aimed at the wrong target. First, India has turned too much blame at Chinese companies. Although we often hear that the Indian market is not friendly, there are still many companies that want to enter the Indian market in order to pursue the dividends of the Indian market and the relocation plans of multinational companies such as Apple.
However, India has taken a variety of measures to block investment applications from these Chinese companies, and even suppressed other measures. They have even openly stated that investment by Chinese companies will not lead to a significant increase in India's manufacturing exports. As for why they are targeting Chinese companies in this way, they don't say a word.
The result now is that now that India is open to investment by certain Chinese companies, it is perfectly possible for them to accelerate their presence in other markets. Vietnam is a good choice.
In addition, India has also set its sights on the Vietnamese market. We all know that Indian manufacturers are an ambitious group, and in the beginning they mainly targeted the mainland market. However, with the explosion of export data from Indian manufacturers, the ambitions of Indian manufacturers have become even bigger, and their targets have also expanded to neighboring countries such as Vietnam. In order to facilitate the growth of Indian manufacturers as much as possible, India** has delayed product audits from suppliers from other countries, including Vietnam. They require these manufacturers to have a local safety verification body in India before they can produce their products.
Judging by these performances, India is trying its best to hold other countries in the neck and prevent them from developing. Today, however, India itself is being embraced by other countries, with foreign investment in Vietnam accounting for one-third of the total value of foreign investment last year. In fact, many investments by Chinese companies are not reflected in this data because these investments are made through overseas subsidiaries. If we take into account the more help of these Chinese companies to Vietnam, we can foresee that in the future, Vietnam's manufacturing industry may form a certain competitive pressure on Indian manufacturing.
This is the evil consequence of India, which could have cooperated for a win-win situation, but had to make too many enemies. They only focus on short-term interests and forget about long-term development. If you don't think about it, even the official reaction of the Chinese market will replace their rhetoric, and they will be robbed of a lot of capacity by other competitors first. What do you think of all this?Feel free to leave a message, like, and share your insights below!