A Study On The Situation Of China's Direct Investment In Vietnam

Advocating the development of a market economy will inevitably expand the domestic market and regional and global markets,so regional and international integration is an essential trend when the economy operates in the market mechanism.Regional and international integration have a positive influence and create opportunities for the socio-economic development of all countries.Because regional and international integration increases the spending power of each country by expanding markets for goods and services;promotes the ability to attract direct and indirect capital from the outside by improving the investment environment and domestic operations;and promotes the use of each economy in the right direction by the reorganization economy.The country's potential and advantages;reform and improve the political,economic,legal,and managerial systems of various countries;and promote trade liberalization,investment,and technology transfer.To date,Vietnam has made many achievements in regional and world integration and has become a regional and international status.After joining the World Trade Organization(WTO)in 2007,Vietnam's biggest gain is Vietnam's favorable export market.There are no obstacles to tariffs and quotas(at present,trade between WTO members accounts for 90% of the world's trade volume.).Vietnamese goods will compete equally with other countries' goods.As a result,a variety of expansions have been formed,reducing trade barriers and attracting more foreign investment.China and Vietnam are two Asian countries,and China is also a neighboring country to Vietnam.Therefore,the trade between China and Vietnam has received various support.First,the customs clearance procedure between the two countries is simplified.This is followed by geographical advantages and understanding of the customs and cultures of the two countries.There is a long land border of 1,406 km between the two countries,bordering on seven provinces in northern Vietnam(Dien Bien Phu,Lai Chau,Lao Cai,Ha Giang,Cao Bang,Lang Son,Quang Ninh)and two provinces in southwestern China(Yunnan,Guangxi).There are more than20 border crossings on the Vietnam-China border to promote trade between thetwo developed countries.China's direct investment in Vietnam started late,but investment growth has been faster.After the signing of the China-ASEAN Free Trade Agreement(ACFTA)agreement,it will help a large number of Chinese companies to successfully enter the Vietnam market and provide rich practical experience.Investment Efficiency of China-ASEAN Free Trade Area China-Vietnam investment is mainly transferred to investment through investment efficiency and efficiency,and investment efficiency promotes China's direct investment in Vietnam.Creating new opportunities,Vietnam's high efficiency in attracting foreign investment and industrial transfer also gives Vietnam an opportunity to undertake China's industrial transfer.China and Vietnam are neighbors,not only geographically close,but have long-term relations of friendship and cooperation.There are also many similarities between Vietnam and China.They still exist in socialist countries,and they are in history and culture.Vietnam has regional advantages,cultural advantages,natural resource advantages,and labor advantages that make Vietnam a major region for attracting direct investment in China.China invests in resource-based industries and labor-intensive industries in Vietnam.This article mainly uses statistical analysis methods and comparative analysis methods to combine the status quo differentiation of China's direct investment in Vietnam in terms of scale,distribution and type of business.According to the motivation analysis and SWOT analysis of China's direct investment in Vietnam,this paper argues that China's direct investment in Vietnam has problems such as excessive investment concentration,weak transfer ability,and lack of preferential policies on China's foreign investment policies and laws.Several suggestions were made for these issues: first,to improve the legal system and policies for foreign direct investment;second,to expand the investment of Chinese companies in Vietnam;third,to strengthen the development of infrastructure;and fourth,to improve the level of corporate managers.