Vietnamplus

The number of foreign direct investment (FDI) enterprises continues to increase in Vietnam, but more are reporting losses. The Ministry of Finance (MoF) said FDI firms' contributions were not yet commensurate with the preferential policies given to them.

One of the biggest weaknesses of many domestic manufacturing industries is the heavy dependence on foreign supply chains, according to the Department of Industry under the Ministry of Industry and Trade.

Not only domestic businesses but also foreign direct investment (FDI) enterprises saw a two-digit drop in their export turnover in the first month of 2020.

Vietnam’s foreign trade turnover surpassed the 500-billion-USD mark for the first time at the end of 2019, putting the country’s total export-import value at close to 4 trillion USD almost over the last two decades, according to the General Department of Vietnam Customs.

Businesses and experts are still concerned over the impact on production of overtime hours that are not increased for seasonal jobs.

Vietnam’s economic restructuring and growth model reform in 2016-2020 have been benefiting from positive changes in policies and achievements in the 2011-2015 period, according to economist Nguyen Dinh Cung.

The Vietnam Textile and Apparel Association (VITAS) said the total export value of textiles, fiber, and cloth reached 25.7 billion USD in the first eight months of the year, up 8.6 percent year on year, including 60.6 percent from foreign direct investment (FDI) enterprises.

Vietnam needs to adjust its development strategy for the mechanical engineering industry to ensure it develops sustainably.

The number of small-scale FDI firms are on the rise, with the proportion of those with capital of less than 5 billion VND (214,831 USD) increasing to 37.7 percent in 2018 from 29.6 percent in 2015.

Vietnam’s total trade turnover reached 100 billion USD between the start of the year and March 19, according to the General Department of Vietnam Customs.

Foreign direct investment (FDI) enterprises have played an increasingly important role in boosting socio-economic development in the northern province of Vinh Phuc, especially in generating jobs for workers.

A few years ago, Samsung, a world-leading electronics company, encouraged local Vietnamese firms to produce spare parts for its factories.

Ha Nam authorities will always accompany and create all favourable conditions for foreign direct investment (FDI) enterprises to invest and expand production in the province, said a provincial leader.

Though local businesses posted export growths, their contributions to the country’s export value have yet accounted for a half of the contributions of foreign direct investment (FDI) enterprises.

Leaders of the northern province of Hai Duong on January 2 granted investment licenses to firms from Hong Kong (China) and Seychelles to operate in local industrial parks.

The entrepreneurial spirit of businesses is a stimulus for the Government to act more drastically and innovatively, said Prime Minister Nguyen Xuan Phuc at the annual Vietnam Business Forum (VBF) 2018 in Hanoi on December 4.

Better supplier-buyer relations with multinationals located in Vietnam would help small- and medium-sized enterprises (SMEs) gain access to electronics global value chains, experts have said.

A capital shortage for local paper manufacturers could make them lose out to foreign direct investment (FDI) enterprises in their own country, according to experts.

Prime Minister Nguyen Xuan Phuc has assigned the Ministry of Finance (MOF) and General Department of Taxation (GDT) to study media reports on transfer pricing of foreign direct investment (FDI) enterprises and tax policy.

Vietnam’s industrial real estate market has been becoming a magnet for foreign direct investment (FDI) enterprises thanks to robust growth of macro-economy.