Rising number of Chinese investors has acquired existing Vietnamese apparel manufacturing to avoid strict regulations since the local Vietnamese authorities are against investments in the textile industry since textile factories lead to several environmental hazards. So to expand their businesses in the country, Chinese investors are acquiring local production units in Vietnam.
According to Thai Tri Dung from the HCM City Economics University, its high time, Vietnamese give a thought to the fact that they are becoming satellite companies in Chinese chains. Most of the skilled Vietnamese workers are poached by the Chinese investors, which Dung says could influence human resource development and exports. He went on to say that once Vietnamese companies become Chinese subsidiaries, Vietnam’s export markets would become China’s markets and most of the businesses would be under China’s control.
Most of the industry experts are of the opinion that Vietnamese companies are running a huge risk by letting their companies merge with Chinese ones. And since textile and garment is Vietnam’s key export industry, China’s control over it can lead to the country getting access and control over other business fields such as agriculture and seafood as well.
Vietnamese experts are against Chinese investments in the country since they are of the opinion that they mostly bring outdated technologies to Vietnam which causes environmental pollution.