FDI enterprises account for nearly 50% of wood industry export turnover.

The report “Foreign Direct Investment in Vietnam’s Wood Industry: Current Situation and Development Trends from 2020 to the First 9 Months of 2023” recently published by Forest Trends in collaboration with wood associations shows that the FDI enterprise group plays an important role in the total export turnover of the wood industry as the export value of this group annually always accounts for 48-50% of the total export turnover of the industry. The FDI enterprise group has become an important and inseparable component.

Although the number of new FDI projects investing in the wood industry decreased during the two years of the Covid-19 pandemic in 2021 and 2022, when the Covid pandemic was controlled, so far, new investment projects, capital contributions to buy shares and increased investment capital of FDI enterprises in the wood industry have increased again.

FDI enterprises account for nearly 50% of wood industry export turnover.

Specifically, new investment witnessed a sharp increase in the number of projects of over 1.25 times and new capital contributions of over 2.5 times in the first 9 months of 2023 compared to the whole year of 2022. Similar to new project investment, capital contribution to buy shares in the first 9 months of 2023, the number of times and capital contribution to buy shares increased sharply by over 1.2 times compared to the whole year of 2022. The number of projects increasing capital in the first 9 months of 2023 decreased, but the total capital contribution increased by over 1.1 times compared to the whole year of 2022.

Of the total 33 FDI projects invested in the wood industry in the first 9 months of 2023 with a total investment capital of 217.56 million USD from 10 countries and territories, leading the list of countries investing in the wood industry in the first 9 months of 2023 such as China, Hong Kong (China), Japan, Korea and Singapore.

The average investment capital of each new FDI project in the first 9 months of 2023 is about 6.5 million USD/project, nearly double that of 2022. In terms of project scale by country in the first 9 months of 2023, Japanese FDI enterprises have the largest average capital scale per project, about over 14.26 million USD/project. Singapore ranks second in terms of investment capital scale for each project, at 6.14 million USD/project. China ranks third with a capital of over 4.9 million USD/project.

Source