Chinese investors have recently been seeking space in Vietnam’s northern economic zones for the production of electronic and solar energy products.

Demand for vacant and suitable spaces from electronic and solar energy production businesses is very high, and finding empty and suitable spaces is a challenge for these production businesses.

According to Savills Vietnam, the Northern Economic Zone (NEZ) receives a steady influx of FDI given its advantageous location. Vietnam’s industrial real estate is moving up the value chain with investment projects from high-value sectors.

In the first half of 2023, Vietnam’s north attracted the largest amount of manufacturing FDI, at $3.4 billion, equal to a 63 per cent of newly-registered manufacturing FDI in 238 new projects.

Savills Vietnam has reported that top Chinese solar companies have been expanding in Vietnam over recent years, not only to reach the Southeast Asian market but also to utilize the country as a springboard to more readily participate in the European and American markets.

Among them, Trina Solar, one of the largest solar panel producers by sales globally, invested in its third factory in northern Thai Nguyen province with an estimated $420 million.

In the past five years, China has been among the top five countries with the largest investment in Vietnam. According to the Ministry of Planning and Investment, in the first nine months of this year it invested $2.92 billion in Vietnam, ranking it second after Singapore ($3.98 billion).

The Ministry added that in the January-September period, Vietnam attracted investment from 102 countries and territories.

China has invested in 4,032 projects Vietnam with total capital of over $26 billion, ranking its sixth among 144 countries and territories.