Vietnam International Political Economy

Chinese chemical maker SP Chemicals has decided to renege on its $1.5 billion Vietnam investment according to Reuters.

The key driver of the move to not invest in Vietnam is poor economic conditions as a result of the current global recession.

More specifically SP Chemicals sights the Chinese government’s stimulus plan as a deterrent considering the China State Council has stated that it would speed up the construction of major ethylene projects which directly compete with SP Chemicals Vietnam investment plans.