The Dragon invests in the world

BEIJING - China is investing overseas in a big way, especially when it comes to its Asian neighbors. In Japan and South Korea it has snapped up ailing companies, such South Korea's ailing oil refinery Inchon. Chinese direct investment in Vietnam hit US$4 billion in July. But the Dragon roams widely. By the end of 2003, total direct investment by 3,439 Chinese enterprises reached $33.4 billion (276 billion yuan), with investment scattered across 139 countries and regions.

China's total net direct investment overseas stood at $33.2 billion. State-owned enterprises accounted for 43% of overseas investment; liability limited companies, 22%; joint-stock companies, 11%; private enterprises, 10%; joint-stock cooperatives, 4%; collective enterprises, 2%; foreign-funded firms, 5%; and others, 3%.

The figures were part of the statistics report on China's Direct Investment Overseas in 2003 (non-financial part), issued jointly by the Ministry of Commerce and the National Bureau of Statistics. This was the first such written report released in China.

More than 70% of the investments were concentrated in manufacturing, wholesale and retail. The report indicates that 12% of the investors were central enterprises and the rest local. They were scattered across 36 Chinese provinces, autonomous regions, municipalities, and cities under central planning as well as the Xinjiang Production and Construction Corp.

The biggest coverage of Chinese investment was in Asia, which received 50% of the investments. More than 80% of Asian countries and regions were the recipients of that investment. Hong Kong, the United States and Japan were areas with the highest concentration of investment, accounting for 41% of the total.

Forms of investment were diversified, with reinvestment of profits accounting for 35% of total direct overseas investment; purchases accounted for 18%; stock investment, 14%; and other forms, 33%. The report also ranks the related economic indices of the top 20 domestic enterprises in terms of net value of investment, sales (business) revenue and total assets of overseas enterprises; and ranks the provinces, autonomous regions and municipalities along with the Xinjiang Production and Construction Corp in terms of net value of direct investment overseas.

Trade with Vietnam to reach $5 billion
Given the current rate of two-way trade between China and Vietnam, the two nations may reach $5 billion in trade turnover this year, a target initially set for 2005. Vietnam's Deputy Prime Minister Vu Khoan announced this at a recent workshop in Hanoi, focusing on the economic relationship between the two countries.

Khoan also said he expects the figure to climb to $10 billion by 2010. Leaders from both nations have conducted regular meetings to develop comprehensive economic ties. The upcoming visit by Chinese Prime Minister Wen Jiabao to Vietnam would mark a new milestone between the two countries' relationship, he said.

Besides trade cooperation, China has helped Vietnam to recover, expand and upgrade a series of metallurgy plants and chemical manufacturing factories. Chinese businesses are helping to develop several infrastructure and electricity projects as well as investing in nearly 300 projects throughout Vietnam.

Chinese ambassador to Vietnam, Qi Jianguo, said trade turnover this year between the two countries stood at $3.7 billion as of now. The ambassador noted that the statistic is a firm foundation for reaching the targeted $10 billion mark by 2010.

Chinese direct investment in Vietnam reached $4 billion, with 600 registered projects by July. Jianguo stressed that since the China-ASEAN (Association of Southeast Asian Nations) Early Harvest Program, China's imports from Vietnam have increased rapidly. The trade turnover increased from $32 million in 1991 to $2.4 billion in 2000.

Last year, trade turnover posted $4.6 billion when China became Vietnam's third-largest trade partner and importer. Vietnam is China's 27th largest business partner, the ambassador said.

The seminar was co-hosted by the Vietnam Chamber of Commerce and Industry (VCCI) and the Chinese Embassy in Vietnam, with more than 400 participants from the embassy and relevant government agencies. It provided comprehensive information about the Sino-Vietnamese trade dynamic and created opportunities for businesses on both sides to exchange information.

At the workshop, VCCI also launched a website for Vietnam and China in Vietnamese, Chinese and English. The web page will provide up-to-date information on the two nations' laws, policies, markets and prices. Some 570 businesses registered with the website, including nearly 200 Chinese businesses.

(Asia Pulse/XIC/VNA)