August, 2025
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As Vietnam pivots toward technology-led, sustainable, and locally integrated growth, Chinese companies are both well-positioned, and under more scrutiny, than ever before.
Driven by key initiatives such as Resolution 68, Power Development Plan 8 (PDP8), and the Semiconductor Master Plan, Vietnam is pursuing “quality FDI” with an emphasis on advanced manufacturing, clean energy, and digital transformation.
For Chinese companies, especially in electronics, renewable energy, infrastructure, bio-pharmaceuticals, and textiles, Vietnam is not only a vital production base but increasingly a competitive partner, and competitor, in global supply chains.
1. The China-Vietnam dynamic
U.S.-China tensions and tariff regimes (e.g., Section 301 Tariffs) have pushed many Chinese companies to offshore production to Southeast Asia, especially Vietnam, to maintain market access. However, Vietnam is no longer just a workaround. It now demands deeper localization, ESG compliance, and value transfer.
This transition is reshaping how Chinese companies must operate.
2. Opportunities for Chinese investors
| Sector / Theme | Opportunity |
|---|---|
| Cross-border industrial parks | Leverage zones like Dongfeng Park in Quang Ninh, and the China-Vietnam (Lang Son) Logistics Corridor |
| EV and battery ecosystem | Tap into PDP8 and FDI incentives to expand Li-ion, LFP battery, and EV component production |
| Green manufacturing | Align textile, electronics, and machinery plants with Vietnam’s green standards and ESG frameworks |
| Semiconductor | Partner on chip testing, packaging (OSAT), and substrate manufacturing with NIC and local tech universities |
| Digital infrastructure | Expand smart factory platforms, AI-based manufacturing solutions, and cloud services |
| E-commerce & Logistics | Use Vietnam as a Southeast Asia logistics hub via partnerships with major e-commerce platforms, and local 3PL providers |
| Bio-pharmaceuticals & Life Sciences | Capitalize on Vietnam’s fast-growing biopharma market (~US$1.3 B, high single-digit CAGR) |
3. Key Challenges unique to Chinese investors
| Risk / Challenge | Implication |
|---|---|
| U.S. scrutiny of Chinese-linked supply chains | Vietnam’s export advantage may erode if rules of origin or Chinese equity links disqualify trade benefits |
| FDI Quality enforcement (Resolution 68) | Companies must prove local R&D, worker training, and green transition, not just cost-based relocation |
| Anti-dumping sentiment | Public perception and labor issues require greater transparency, local hiring, and community integration |
| Digital and data compliance tightening | Chinese platforms must align with Vietnam’s data sovereignty and cross-border transfer laws |
| Infrastructure access constraints | Heavy industries (steel, energy, cement) face power, land, and port allocation challenges; for biopharma, GMP-compliant facilities and cold-chain capacity may be limited |
4. Strategic Responses for Chinese investors
| Strategy | Rationale |
|---|---|
| Vietnamization of operations | Build local brands, recruit Vietnamese management, and adopt Vietnamese compliance norms |
| Joint ventures with Vietnamese enterprises | Helps navigate regulatory barriers and ease political risk |
| Green + Smart upgrades to factories | Align with PDP8 and ESG mandates; secure green energy credits |
| Decouple U.S.-bound from China-origin inputs | Restructure supply chains to meet rules of origin for CPTPP, EVFTA exports |
| Biopharma-specific: Localize R&D & Tech transfer | Embed R&D labs in biotech parks; establish GMP training programs, and partner with Vietnamese universities to build high-skill talent pipelines |
5. How KPMG can support
KPMG Mandarin Practice is working closely with Chinese clients to manage both regulatory risk and growth opportunity:
| I. Policy advisory & Localization compliance |
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| III. Green supply chain & smart factory enablement |
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| II. Joint venture structuring |
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| IV. Export & Risk mitigation strategy |
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Lim Chew Teng
Partner, Audit
Head of Mandarin-speaking Desk
KPMG in Vietnam
Lim Chew Teng
Partner, Audit, Head of Mandarin-speaking Desk, KPMG in Vietnam
As the leader of your KPMG service team, Chew Teng will ensure seamless service delivery and that our team meets your expectations. She will collaborate closely with the Engagement Manager to plan the audit strategy, execute the plan, review financial statements, and report to your management.
Chew Teng oversees all aspects of the engagement, including audit planning, completing engagements within agreed timelines, reviewing financial statements, and reporting findings. As the individual responsible for overall quality control, she leads the team in defining conclusions and serves as KPMG’s primary point of contact with company management.
Chew Teng has extensive experience in a wide range of external audit assignments, including statutory audits for local and multinational clients across the manufacturing, real estate/construction, livestock, plantation, and service industries. Most of her clients are foreign-owned companies and subsidiaries of listed corporations overseas, requiring deep understanding of various international accounting principles.
Tran Thanh Tam
Director, Head of Markets Group
KPMG in Vietnam and Cambodia
Tran Thanh Tam
Director, Head of Markets Group, KPMG in Vietnam and Cambodia
As the Head of Markets for KPMG in Vietnam and Cambodia, Tam brings his Market Research & Consulting expertise to develop strategies on how KPMG goes to market, collaborating to unlock the value and leverage the power of industries in our pursuits.
He and his team’s focus is on market development and execution, marketing & communication, corporate affairs, and evaluating and integrating our solutions to meet the evolving needs of our clients.
Fang Kun
Director, Tax
Mandarin-speaking Desk
KPMG in Vietnam
Fang Kun
Director, Tax, Mandarin-speaking Desk, KPMG in Vietnam
Kun Fang has over 14 years of professional experience specializing in transfer pricing, with extensive involvement in both global and regional projects. His expertise includes transfer pricing risk assessments, preparation of contemporaneous documentation, development of planning and analytical reports, and assistance in tax dispute resolutions, including special tax investigations focused on transfer pricing.
Throughout his career, Kun has served clients across a wide range of industries, including electronics, IT, consumer goods, chemicals, pharmaceuticals, medical devices, commodity trading, retail, logistics services, and financial services. He was previously based in Moscow, where he led the CEE–China Corporate Affairs Department at one of the Big Four accounting firms.
Kun has also supported numerous Chinese outbound enterprises in structuring tax frameworks and transfer pricing planning for investments targeting Europe, the United States, and Southeast Asia.