2016's five-year record high export revenue has been largely attributed to FDI enterprises.
Samsung has been investing in Vietnam for 20 years. In 2016, its export revenue exceeded 36 billion USD, accounting for over 20% of Vietnam's total export turnover.
Nguyen Mai, Chairman of Vietnam Association of Foreign Invested Enterprises said: "40% of Samsung mobile phone production worldwide is from Vietnam. In 2007, when Vietnam first produced mobile phones, export revenue of this product reached one billion USD. Now, it's become our top export product".
In recent years, FDI enterprises like Samsung have become the driving force of Vietnam's export growth. In 2010, export turnover of FDI enterprises reached 39 billion USD, accounting for more than half of Vietnam's export revenue. In 2016, it accounted for over 71% of Vietnam's export revenue, standing at nearly 126 billion USD.
Nguyen Mai, Chairman of Vietnam Association of Foreign Invested Enterprises said: "FDI enterprises recorded a trade surplus of 23 billion USD in 2016. Meanwhile, the trade deficit of domestic firms exceeded 20 billion USD. FDI companies have helped Vietnam rack up a trade surplus of 3 billion USD".
FDI enterprises work in most of Vietnam's key export sectors including mobile phones, textiles and garments, electronics and footwear production. FDI businesses have contributed to modernising Vietnam's production and more.
Nguyen Anh Duong, Deputy Director of Research Department for Macroeconomic Policies, Central Institute for Economic Management said:"FDI enterprises create employment for Vietnamese workers, especially those in export sectors. Secondly, they contribute to the state budget by paying income tax as well as taxes on trade. More importantly, FDI firms have pushed Vietnam to improve the business climate and policies".
However, there are concerns about Vietnam's export sector being too dependent on FDI firms. Experts have stressed the importance of boosting links between FDI and domestic businesses, helping domestic firms further integrate into global value chains.
