Possible Yuan Appreciation May Help Boost Chinese Investment in Vietnam
China may raise Yuan value in the third or fourth quarter of this year due to pressures from countries which saw trade deficit with it, which is expected to boost Chinese investments abroad, including Vietnam.
Vo Tri Thanh, deputy head of the Central Institute of Economic Management (CIEM), said Yuan appreciation will raise value of Chinese assets, increasing its overseas investments.
Vietnam will be among top destinations for Chinese companies for its low-cost labor forces, favorable geographical location and natural resources.
The Chinese yuan is forecast to appreciate 4%-5%, to 6.5 Yuan against dollar from 6.8 at present in the third or fourth quarter of 2010.
Thanh also cautioned about dirty technologies from China that may worsen the Southeast Asian country’s environment pollution.
To date, Chinese companies have invested in 800 projects in Vietnam.
Vietnam has incurred a huge trade deficit with China for years with the record high of $11.3 billion in 2009, making up around 90% of Vietnam’s total trade gap, the General Statistics Office estimated in early January.
Vietnam and China are trying to raise the bilateral trade to $25 billion this year from $20.9 billion in 2009. (vneconomy.vn)
Vietnamese
