Experts: Vietnam yet to take full advantage of FDI
Vietnam has not taken full advantage of foreign direct investment (FDI) while its private enterprises have failed to connect with the global production chain.
Inside an automobile production plant in Vietnam (Photo: VNA)
Hanoi (VNA) – Vietnam has not taken full advantage of foreign directinvestment (FDI) while its private enterprises have failed to connect with theglobal production chain, heard the Midterm Vietnam Business Forum (VBF) 2017held in Hanoi on June 16.
Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc, whois also Co-chairman of the VBF Consortium’s Management Board, said that therehas been a poor linkage between foreign and domestic investors while theknock-on effect in terms of technology and labour productivity from foreignfirms on Vietnamese firms remains limited.
According to a survey conducted by VCCI, the proportion of domestic businessessupplying commodities and services for FDI enterprises is pretty low. TheProvincial Competitiveness Index (PCI) report in 2016 showed that only 14percent of private businesses have customers that are FDI enterprises operatingin Vietnam.
Less than 27 percent of FDI firms’ input materials were purchased fromVietnamese partners while a substantial amount was bought from other FDIcompanies. High-tech FDI enterprises tend to import input materials from theirhomeland.
The real situation was attributed to puny marketing policies, inefficientindustry support programmes and domestic firms’ failure to provide supplies thatmeet standards in production management and quality of from FDI enterprises.
Loc said that improving the qualifications of human resources is the key topromoting FDI businesses’ effects on domestic enterprises.
Vietnam needsto mobilise all resources to better competitive capacity of private enterprisesand the Government should realise policies to bolster the supporting industry,Loc recommended.
Tomaso Andreatta, Vice Chairman of the European Chamber of Commerce in Vietnam(EuroCham) and member of the VBF Consortium’s Management Board, expectedfurther improvements in Vietnam’s business climate which help bring morepractical effects to the business community. This will contribute to building mutualtrust and support among private and FDI enterprises, he added.
Meanwhile, Jonathan Moreno, Chairman of the US Business Community in Vietnam,affirmed that reducing operating costs and simplifying business procedures willbenefit Vietnamese firms, most of them are small- and medium-sized enterprises,thus enhancing the Vietnamese economy’s competitiveness edge.-VNA
Foreign direct investment (FDI) in the real estate market hit nearly 52.7 billion USD as of May this year, with 65 percent of which or 40 billion USD being poured into resort projects.
Vietnam’s real estate market attracted over 600 million USD in foreign direct investment in the first five months of this year, according to the General Statistics Office.
The northern province of Bac Giang drew 77 investment projects with a combined registered capital of 1.455 million USD in the first five months of this year.
Places with stable and favourable policies which promote business linkages are magnets for foreign investment, said Chairman of the Japanese Business Association in Vietnam Sagara Hirohide.
The article by Cuba’s Inter Press Service detailed how Vietnamese private enterprise Agri VMA leased 1,000 ha of land in Los Palacios district, Cuba’s westernmost province of Pinar del Río, for rice cultivation over a three-year period. The project’s first harvest in 2025 recorded an impressive yield of 7.2 tonnes per hectare, far exceeding the local average of 1.6 tonnes.
During the visit, office representatives held a working session with the Tipaza Chamber of Commerce and Industry and met with several prominent local businesses operating in key sectors including industry, agriculture, fisheries, food processing, chemicals, pharmaceuticals and plastics.
A Nordic delegation to Vietnam International Sourcing 2025 in September will feature leading names in retail, consumer goods, logistics, and sustainable manufacturing, including global fashion giant H&M, offering fresh prospects for partnerships in fashion, textiles, and green supply chains.
With the current trading band of +/- 5%, the ceiling rate applicable for commercial banks during the day is 26,276 VND/USD and the floor rate 23,774 VND/USD.
Effective from the date of signing on June 18, the decision halts procedures outlined in the 2005 Memorandum of Understanding (MoU) between the governments of Vietnam and Laos on the initial implementation of the Greater Mekong Subregion (GMS) Cross-Border Transport Facilitation Agreement at the Lao Bao–Densavan border gate.
The event aimed to update businesses on new regulations and compliance requirements regarding US tax, trade, and customs policies, while offering practical solutions to facilitate exports amid shifting trade dynamics.
The festival marks a significant milestone in promoting the brand, value, and legacy of traditional fish sauce - a product deeply rooted in the island’s identity and history spanning over 200 years.
According to Mastercard data, Vietnam has recorded a remarkable 92% compound annual growth rate (CAGR) in contactless transaction volume from Q4 2022 to Q4 2024.
Tuan expressed his confidence that LH, with its expertise and experience, would swiftly implement the urban area project, contributing to a modern urban landscape for the province.
With its strategic location, abundant workforce, and modern infrastructure, Vietnam holds significant potential to become a leading centre for power and electronics production in the region and the world.
The renewable energy workforce training and development centre, invested by Germany's GEO Group, is expected to be a cornerstone in shaping Binh Dinh as a renewable energy and innovation hub in central Vietnam, meeting the growing demand for skilled technical personnel in offshore wind, solar farms, and green hydrogen projects.
A notable trend is the shift toward satellite regions. With land scarcity and soaring prices in Ho Chi Minh City and Hanoi, investors are eyeing provinces like Hung Yen, Bac Ninh, and Hai Phong, which are benefiting from improved technical infrastructure and transport connectivity.
To further strengthen private-sector innovation, Bac Ninh plans to accelerate administrative reforms, build a digital, service-oriented government, and develop an integrated innovation ecosystem that connects businesses with domestic and international institutions, universities, and experts.
The participation of H&M, one of the world's largest fashion corporations, in Vietnam International Sourcing 2025 in Ho Chi Minh City in early September is considered a special highlight, opening up many cooperation opportunities for Vietnamese businesses in the fashion, textiles and sustainable supply chains.
This latest order builds on a previous agreement signed at the Singapore Airshow last year for 40 engines, bringing the total number of Trent 7000 engines ordered by the airline to 80.
Minister of Industry and Trade Nguyen Hong Dien acknowledged that despite concerted efforts by ministries and local authorities in combating fake and substandard goods, the situation remains highly complicated, attributing the persistent challenges to high profits luring numerous participants, increasingly sophisticated violations, limited resources within enforcement agencies.
The group also placed among the Top 5 energy companies in Southeast Asia and secured the top spot among the largest Vietnamese enterprises featured on the list.
Inside an automobile production plant in Vietnam (Photo: VNA) 
