Exports depending too much on FDI enterprises is not a new issue, but has always received great attention in Vietnam in recent times.
FDI sector accounts for over 70% of total export turnover.
According to statistics, in recent years, the export value of the region business Foreign direct investment (FDI) enterprises always have a 'dominance' over the domestic enterprise sector. In the period from 2018-2024, exports of FDI enterprises always account for over 70% of Vietnam's total export value.
Specifically, in 2018, according to data from the Foreign Investment Agency (Ministry of Planning and Investment), exports from the FDI sector, including crude oil, reached 175.5 billion USD, up 12.9% over the same period in 2017 and accounting for nearly 71.7% of turnover. export nationwide. Excluding crude oil, exports of the FDI sector in 2018 reached 173.2 billion USD, up 13.6% over the same period and accounting for 70.7% of Vietnam's export turnover.
Similarly, in 2024, FDI sector exports including crude oil are estimated to reach nearly 290.9 billion USD, up 12.3% compared to 2023, accounting for nearly 71.7% of export turnover. Exports excluding crude oil are estimated to reach more than 289.2 billion USD, up 12.5% compared to 2023, accounting for more than 71.3% of the country's export turnover.
However, in addition to the strong growth in exports of the FDI sector, imports of this sector also grew equally. Specifically, imports of the FDI sector in 2018 reached 142.7 billion USD, up 11.6% over the same period in 2017 and accounting for 60.1% of total import turnover.
In 2024, imports of the FDI sector are estimated to reach nearly 240.7 billion USD, up 15.1% compared to 2023 and accounting for 63.2% of the country's import turnover. Thus, in 2024, the FDI sector will have a trade surplus of nearly 50.3 billion USD including crude oil and a trade surplus of more than 48.6 billion USD excluding crude oil.
In his speech at the 6th National Forum on Developing Vietnamese Digital Technology Enterprises recently, General Secretary To Lam frankly mentioned the export issue of the FDI enterprise sector recently.
General Secretary To Lam stated: Vietnam ranks 2nd in the world in exporting smart phones; 5th in the world in exporting computer components; 6th in the world in exporting computer equipment; 7th in the world in software processing, and 8th in the world in electronic components.
“ These are impressive numbers, but have we ever looked deeply into the nature of these figures? How much % do we contribute? in those that value? ” - The General Secretary asked a question.
Where are domestic enterprises in the value chain?
According to General Secretary To Lam, the foreign direct investment enterprise sector exports 100% of the value of phones and components but imports up to 80% of the value of these components .
“I want to clarify these shortcomings so that we can look straight at where our businesses stand in the global value chain as well as in international competitiveness”? - General Secretary To Lam is concerned.
Perhaps, this is not the concern of General Secretary To Lam alone. In fact, the dominance of foreign-invested enterprises in exports has been mentioned at many forums in recent years.
At the 2024 working conference, deploying the 2025 tasks of the Department of Industry (Ministry of Industry and Trade), Minister of Industry and Trade Nguyen Hong Dien frankly pointed out: Over 70% of export value comes from the FDI enterprise sector. This means that domestic enterprises account for a small proportion of the total industrial production value and total export value of the industries.
Also expressing concerns that Vietnam's import-export growth depends heavily on the foreign direct investment sector, Dr. Nguyen Dinh Cung - former Director of the Central Institute for Economic Management - CIEM (Ministry of Planning and Investment) said: The domestic enterprise sector is still very 'sluggish' and private sector investment is still low.
To overcome these shortcomings in 2025, according to Dr. Nguyen Dinh Cung, Vietnam needs to create a 'new breath' in reform and improvement. investment environment business, creating more favorable conditions for domestic private enterprises to operate.
'Because the private sector does not need monetary incentives, what they need is a transparent, accompanying, and trustworthy mechanism for their investment and business opportunities. they ' - Dr. Nguyen Dinh Cung affirmed.
Besides creating mechanisms, policies and creating 'new momentum' for the domestic business sector, economic experts believe that in order to participate more deeply in the global value chain, domestic businesses themselves also need to strive to rise up and affirm their position in the global supply chain.
Regarding this issue, according to General Secretary To Lam, Vietnamese enterprises need to have greater consensus, determination and aspiration. This is not only an opportunity but also the responsibility of each enterprise in contributing to realizing the great goal set by the Party and State in Resolution 57/NQ-TW of the Politburo on breakthroughs in science and technology development, innovation and national digital transformation, to turn the aspiration of leadership into concrete actions.
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