Illustrative image (Source: VNA) Hanoi (VNA) –Foreign-invested enterprises have become an important driving force for Vietnam’seconomic development and international integration after 30 years since thecountry began attracting foreign direct investment (FDI).
Statistics from the Import-Export Departmentunder the Ministry of Industry and Trade, from only 10 billion USD in 1988 whenVietnam started absorbing FDI, the country’s total export revenue is expectedto hit 225 billion USD in 2018.
Notably, an annual average rise of17.6 percent has been recorded in exports in the 2011-2015 period, much higherthan the target set in the import-export strategy to 2020 with a vision to 2030as well as the goal of 12 percent set out at the 11th Party NationalCongress. The FDI sector has played a key role in maintaining export growth of thecountry.
Tran Thanh Hai, Deputy Director ofthe Import-Export Department, said that six years ago, export value of domesticfirms was higher than that of FDI enterprises, but now exports of FDIenterprises has tripled that of their Vietnamese peers.
FDI firms have made up 20 percent ofthe total State budget collection, 10 times higher than the figure in 2000.Particularly, over 50 percent of Vietnam’s total industrial production value comesfrom 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 ofKorea’s Samsung Group is producing 40 percent of smartphones in Vietnam withexport revenue of 50 billion USD in 2017, equivalent to the combined exportturnover of all domestic enterprises.
However, less than 30 domestic firmshave been able to join the production chain of Samsung in Vietnam, Hai noted.
At the same time, tax evasion andtransfer pricing have still been found in some FDI businesses, while many FDIprojects have damaged the environment, which are bitter lessons for Vietnam inFDI attraction.
Moreover, although due attention havebeen paid to the transfer and receipt of technologies from FDI enterprises foryears, the results have yet to reach expectation.
In 2018, Vietnam expects to open up anew and brighter chapter in FDI attraction. Experts held that not only in 2018but following years, Vietnam will still be an attractive destination forforeign investors.
However, they also highlighted theneed for more efforts from the Government as well as both domestic and foreignbusinesses in maintaining the bight prospect for Vietnam in investmentattraction.-VNA
VNA
