Vietnam has successfully integrated into several value chains, creating jobs, boosting economic growth and reducing poverty. However, the FDI sector has still not built significant links with the domestic private sector. The ministry's report stated that Vietnam's medium and small enterprises mainly provide simple inputs with little value added or simple components and indirectly provided to FDI companies through level 1 or 2 suppliers. According to statistics, the proportion of foreign enterprises using domestic production inputs of Vietnam at over 67% is significantly lower than Thailand at 96%, Malaysia 99% and China 97.2%. Notably, 65.4% of FDI businesses did not trade in the domestic market, accounting for more than double the share of domestic FDI at 36%.
