Chinese OFDI

Dr. Jean-Marc F. Blanchard's picture

Vietnam, Special Economic Zones, and the “Problem” of Chinese FDI

To spur economic development, Vietnam has been, among other strategies, moving to establish special economic zones (SEZs). As elsewhere, these SEZs offer special privileges like long-term leases up to 99 years, tax breaks for companies and workers, and discounts on water and other service charges. In Vietnam’s case, SEZs recently have become a lightning rod for public protest rather than a cause to celebrate Hanoi’s economic acumen.

MNCs in the News-2016-05-20

Chinese committee has been examining technology products (hardware, software, and other) sold by by big foreign companies for security risks. Apple CEO Tim Cook meets with Chinese officials in an additional effort to curry government favor. Beijing Automotive Industry Holding Co. has big globalization plans which include working with foreign government partners. Nissan faces South Korea fines and mandatory recall as well as consumer lawsuits over so-called emissions defeat device. South Korean CJ Group senior managers meet with top level Indonesian delegation to discuss cooperation. At forum in Seoul, Indonesian president welcomes more Korean investment and emphasizes his government’s progress in creating a better investment environment. Indonesian Energy and Mineral Resources Minister Sudirman Said meets with US companies to tout investment opportunities in the energy sector. Thailand and China continue negotiations to settle on cost estimates for the Bangkok-Nakhon Ratchasima high-speed rail project. Uber Technologies press Thai officials to legalize its services. Singaporean investors continue to remain important to Vietnam. Vietnam’s State Capital Investment Corporation and the Russian Direct Investment Fund sign MoU to establish a Russian-Vietnamese investment platform.