FDI firms play important role in Vietnam’s economic growth

Foreign invested enterprises have become an important driving force for Vietnam economic development and international integration after 30 years since the country began attracting foreign direct investment FDI
fdi firms play important role in vietnams economic growth

Statistics from the Import-Export Department under the Ministry of Industry and Trade, from only US$10 billion in 1988 when Vietnam started absorbing FDI, the country’s total export revenue is expected to hit US$225 billion in 2018.

Notably, an annual average rise of 17.6% has been recorded in exports in the 2011-2015 period, much higher than the target set in the import-export strategy to 2020 with a vision to 2030 as well as the goal of 12% set out at the 11th Party National Congress. The FDI sector has played a key role in maintaining export growth of the country.

Tran Thanh Hai, Deputy Director of the Import-Export Department, said that six years ago, export value of domestic firms was higher than that of FDI enterprises, but now exports of FDI enterprises has tripled that of their Vietnamese peers.

FDI firms have made up 20% of the total State budget collection, 10 times higher than the figure in 2000. Particularly, over 50% of Vietnam’s total industrial production value comes from FDI firms. The FDI businesses have made a giant step in just a short time, but their influence on domestic companies remains modest.

Hai pointed out that the Republic of Korea’s Samsung Group is producing 40% of smartphones in Vietnam with export revenue of US$50 billion in 2017, equivalent to the combined export turnover of all domestic enterprises.

However, less than 30 domestic firms have been able to join the production chain of Samsung in Vietnam, Hai noted.

At the same time, tax evasion and transfer pricing have still been found in some FDI businesses, while many FDI projects have damaged the environment, which are bitter lessons for Vietnam in FDI attraction.

Moreover, although due attention have been paid to the transfer and receipt of technologies from FDI enterprises for years, the results have yet to reach expectation.

In 2018, Vietnam expects to open up a new and brighter chapter in FDI attraction. Experts held that not only in 2018 but following years, Vietnam will still be an attractive destination for foreign investors.

However, they also highlighted the need for more efforts from the Government as well as both domestic and foreign businesses in maintaining the bight prospect for Vietnam in investment attraction.

Source: VNA

Related News

Binh Duong Customs joint hand to improve business environment and attract FDI investment

Binh Duong Customs joint hand to improve business environment and attract FDI investment

VCN - With the advantage of modern, basically complete industrial park infrastructure, especially the attention, companionship, and support of agencies and departments such as Customs, Taxation, Industry and Trade..., Binh Duong has been and continues to become a priority for foreign investors.
Increasing foreign investment resources from improving the business environment

Increasing foreign investment resources from improving the business environment

VCN - In the 2 years 2024-2025, the proportion of foreign invested enterprises (FDI) expected to expand production and business has decreased compared to previous years, reflecting a more cautious trend of FDI enterprises. due to the impact of the current unpredictable global economic context.
Many foreign enterprises find opportunities and expand investment in Vietnam

Many foreign enterprises find opportunities and expand investment in Vietnam

VCN - In the context of the world investment wave shifting, Vietnam has the opportunity to become the world's factory, many foreign enterprises have been looking for investment opportunities as well as expanding investment in Vietnam.
Increase foreign investment resources from improving the business environment

Increase foreign investment resources from improving the business environment

VCN - In the two years 2024-2025, the proportion of foreign invested enterprises (FDI) expected to expand production and business will decrease compared to previous years, reflecting a more cautious trend of FDI enterprises due to the impact of the current unpredictable global economic context.

Latest News

Shifting production to expand exports to the Northern European market

Shifting production to expand exports to the Northern European market

VCN - Nordic countries often map out policies to achieve EU goals sooner than others. Among them, general principles and standards regulating manufacturers' responsibilities for textiles and garments from Nordic countries need to be paid attention by businesses.
Businesses advised to stay prudent to avoid trading scams

Businesses advised to stay prudent to avoid trading scams

Authorities have continuously warned Vietnamese businesses to stay prudent when trading with foreign partners in the face of a recent scam increase.
Leather, footwear exports to hit 27 billion USD in 2024

Leather, footwear exports to hit 27 billion USD in 2024

Export revenue of the leather, footwear and handbag sector is predicted to hit 26-27 billion USD in 2024 on the basis of the positive results seen so far, according to the Vietnam Leather, Footwear and Handbag Association (LEFASO).
Tra fish export to CPTPP market reaches 114 mln USD as of June 15

Tra fish export to CPTPP market reaches 114 mln USD as of June 15

Vietnam raked in 114 million USD from tra fish export to the signatory nations of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as of June 15, a year-on-year increase of 10%, according to the General Department of Vietnam Customs.

More News

Building a Vietnamese brand associated with green and sustainable development

Building a Vietnamese brand associated with green and sustainable development

VCN - According to experts, in the current context, branding becomes more urgent, helping to increase endogenous resources for businesses, helping businesses move towards strong development, gradually reaching further in the domestic and world markets.
Pepper export turnover up over 30% in H1

Pepper export turnover up over 30% in H1

Vietnam exported 142,586 tonnes of pepper in the first half of this year, down 6.8% in volume but up 30.5% in value, the Vietnam Pepper and Spice Association (VPSA) has reported.
Dong Nai remains FDI magnet in H1

Dong Nai remains FDI magnet in H1

The foreign direct investment (FDI) influx into the southern industrial hub of Dong Nai in the first six months of this year was equivalent to 138% of the locality’s plan for the whole year.
Vietnamese agricultural products, food expected for deeper engagement in global supply chain

Vietnamese agricultural products, food expected for deeper engagement in global supply chain

Vietnam boasts advantages and potential in agricultural production and export, yet domestic firms need to do more to join the global food supply chain more intensively, insiders have said.
Developing export markets along with trade promotion

Developing export markets along with trade promotion

VCN - Import and export of goods in the first 6 months of 2024 continue to record positive results, total turnover is estimated at USD 369.6 billion, up 16% over the same period last year.
Building the Vietnamese brand associated with green and sustainable development

Building the Vietnamese brand associated with green and sustainable development

VCN - According to experts, in the current context, branding becomes even more urgent, helping to increase endogenous resources for businesses, helping businesses move towards strong development, gradually reaching further in the domestic and world markets.
Improving the competitiveness of businesses is an important factor

Improving the competitiveness of businesses is an important factor

VCN - Local competitiveness is not only based on economic management capacity, the favorable and friendly business environment and efforts to improve administrative reform efforts of provincial and city governments (PCI) but also relies on the competitiveness of local businesses.
Malaysia to boost exports to Vietnam

Malaysia to boost exports to Vietnam

The Malaysian Ministry of Investment, Trade and Industry (MITI) on July 11 announced that the country has secured potential exports worth 3.3 billion RM (about 717 million USD) to Vietnam.
Exporters advised to update trade policies of Singapore

Exporters advised to update trade policies of Singapore

The Vietnam Trade Office in Singapore has advised Vietnamese exporters to carefully study and keep updated on new regulations in Singapore, a market that is becoming more cautious in trade policy, in order to further exploit this market.
Read More

Your care

Latest Most read
Shifting production to expand exports to the Northern European market

Shifting production to expand exports to the Northern European market

General principles and standards regulating manufacturers' responsibilities for textiles and garments from Nordic countries need to be paid attention by businesses.
Businesses advised to stay prudent to avoid trading scams

Businesses advised to stay prudent to avoid trading scams

Authorities have continuously warned Vietnamese businesses to stay prudent when trading with foreign partners in the face of a recent scam increase.
Leather, footwear exports to hit 27 billion USD in 2024

Leather, footwear exports to hit 27 billion USD in 2024

Export revenue of the leather, footwear and handbag sector is predicted to hit 26-27 billion USD in 2024 on the basis of the positive results seen so far, according to the Vietnam Leather, Footwear and Handbag Association (LEFASO).
Tra fish export to CPTPP market reaches 114 mln USD as of June 15

Tra fish export to CPTPP market reaches 114 mln USD as of June 15

Vietnam raked in 114 million USD from tra fish export to the signatory nations of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as of June 15, a year-on-year increase of 10%, according to the General Department of Vietnam Customs.
Building a Vietnamese brand associated with green and sustainable development

Building a Vietnamese brand associated with green and sustainable development

VCN - According to experts, in the current context, branding becomes more urgent, helping to increase endogenous resources for businesses, helping businesses move towards strong development, gradually reaching further in the domestic and world markets.
Mobile Version