Foreign firms major contributors to Vietnam local budgets – VnExpress International


By Anh Minh  &nbspSeptember 25, 2020 | 04:55 pm GMT+7
Foreign firms major contributors to Vietnam local budgets  Foreign firms major contributors to Vietnam local budgets - VnExpress International WEBDJI0170 1601008417 3851 1601016271

An aerial view of factories of Taiwanese shoemaker Pouyuen Vietnam in Ho Chi Minh City, July 9, 2020. Photo by VnExpress/Quynh Tran.

Budget collection from foreign direct investment companies accounts for over 50 percent of the total in several Vietnamese localities, a report says.

The ratio was as high as 93.5 percent and 72 percent respectively in the northern provinces of Vinh Phuc and Bac Ninh in the 2011-2019 period, according to a report compiled by the Ministry of Planning and Investment.

Several major FDI projects, including Honda Vietnam plants, are based in Vinh Phuc, while Bac Ninh has factories of the world’s largest electronics supplier Foxconn.

Other localities with high ratio of revenues coming from FDI companies are the southern provinces of Dong Nai and Binh Duong (63 and 52 percent, respectively), and the northern province of Bac Giang (60 percent).

Nationwide, FDI companies contributed an average 28 percent of budget collection in the period.

However, the investment ministry said there was a lack of connection between FDI companies and local suppliers, and many FDI projects were focused on assembling.

The localization rate is low in some industries. A survey of the Japan External Trade Organization (JETRO) shows that the localization rate of Japanese companies in Vietnam was 36.3 percent last year.

Just 5 percent of the FDI companies in the country were using advanced technologies, the report said.

It said FDI companies contribute about 20 percent of Vietnam’s annual GDP. Last year, FDI firms’ exports accounted for 71.3 percent of Vietnam’s total.

FDI companies created 10 million jobs last year with their productivity 2.4 times the national average.

As of August this year, there were 32,539 active FDI projects in Vietnam with a total of $233 billion of disbursed investment.

e.VnExpress

What's Your Reaction?

Cry Cry
0
Cry
Cute Cute
0
Cute
Damn Damn
0
Damn
Dislike Dislike
0
Dislike
Like Like
0
Like
Lol Lol
0
Lol
Love Love
0
Love
Win Win
0
Win
WTF WTF
0
WTF

Comments 0

Your email address will not be published. Required fields are marked *

Foreign firms major contributors to Vietnam local budgets – VnExpress International

log in

Become a part of our community!

reset password

Back to
log in
error: Content is protected !!
Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Open List
Open List
Ranked List
Ranked List
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF