FDI sector remains export pillar of Vietnam’s economy

The FDI sector remains export pillar of Vietnam’s economy. (Photo: VNA)

The foreign direct investment (FDI) sector maintained its role as an export pillar of Vietnam’s economy with revenue of 43.2 billion USD in the first two months of this year, up 14.7%, and accounting for 72.8% of the country’s total export value.

Exports of items as phones, computers, machinery, equipment and garments-textiles experienced strong growth, ranging from 4.1% to 33.9%, Dau tu (Investment) Newspaper reported.

Meanwhile, electronic products, garments-textiles and footwear, among others, gave a boost to the import of materials in service of production, which saw a year-on-year rise of 18%.

In the two months, Vietnam posted a trade surplus of 4.72 billion USD, with the FDI sector, including crude oil, recording a trade surplus of 8.25 billion USD.

Notably, the US imported 17.4 billion USD worth of goods from the Southeast Asian nation, a year-on-year increase of 33.7%. Vietnam ran a trade surplus of 15.2 billion USD with the US, up 36.3% from the same period last year.

Almost most-purchased items were supplied by FDI firms, including computers, phones, electronics and components, machinery, equipment and spare parts, garments-textiles, and footwear.

Once fully tapped, the US market would offer over 100 billion USD in export revenue to Vietnam in 2025, said Trade Counsellor and head of the Vietnam Trade Office in the US Do Ngoc Hung.

Hung, however, noted that more trade barriers have been set up by the US to protect domestic production, and advised Vietnamese management agencies, businesses and localities to stay updated on changes in politics and policies in the country to take timely response.

In January and February, Vietnam also shipped 7.7 billion USD worth of goods to the European Union (EU), a surge of 14.2% year-on-year, and the rise is expected to continue in the time ahead thanks to the EU-Vietnam Free Trade Agreement (EVFTA).

After the deal came into force in August 2020, the two-way trade has experienced double-digit growth, as compared with a 5%-7% rise in Vietnam’s exports to the EU, and 3%-5% in imports in the previous period./.