return icon Vietnamnet.vn

Only 5% FDI projects in Vietnam use high technologies

Vietnam is home to 32,539 valid foreign direct investment (FDI) projects with registered capital of a combined US$381 billion, of which US$233 billion has been fully disbursed.

A report from the Ministry of Planning and Investment (MPI) outlining Vietnam’s strategy for foreign investment in the 2021 – 2030 period suggested only 5% foreign-invested enterprises in the country are using high technologies.

{keywords}
Only 5% of FDI projects in Vietnam are using high technologies.

Meanwhile, around 80% are using mid-level technologies and 14% low technologies, stated the MPI, adding there have not been efficient solutions to prevent transfer pricing among FDI enterprises, according to Tuoi Tre.

As of the end of August, Vietnam is home to 32,539 valid foreign direct investment (FDI) projects with registered capital of a combined US$381 billion, of which US$233 billion has been fully disbursed.

The FDI sector has also contributed around 20% of Vietnam’s GDP, the report calculated.

In 2019, the FDI enterprises posted export turnover of US$181 billion, accounting for 71.3% of Vietnam’s exports and created 10 million jobs. 

Notably, the productivity in this sector was 2.4 times the national average.

In a number of provinces and cities, the FDI sector makes up a large proportion of state budget revenue, including Vinh Phuc (93.5%), Bac Ninh (72%), Dong Nai (63%), and Binh Duong (50%), among others.

During the 2011 – 2019 period, the FDI sector contributed an average of 28% of state budget revenue annually.

The report also referred to statistics from the State Bank of Vietnam (SBV), the country’s central bank, that showed there has been a surge in loans from the FDI sector, which normally accounts for 80% of foreign loans in the economy.

The MPI also pointed out five types of illegal investment activities from FDI firms or foreign individuals that need to be addressed soon, including investments through Vietnamese organizations and people, or a legal entity from a third country in land associated with Vietnam’s national security.

The MPI suggested this is the right time for Vietnam to change its strategy in attracting FDI, which should be based on high quality human resources, improvements in infrastructure and flexible policies, instead of cheap labor costs or tax incentives, among others.

FDI commitments in the January – August period totaled US$19.54 billion, down 13.7% year-on-year.

Year to August 20, 1,797 new projects have been approved with total registered capital of US$9.73 billion, up 6.6% in capital and down 25.3% in the number of projects year-on-year. Out of 106 countries and territories investing in Vietnam in the first eight months of 2020, Singapore took the lead with US$6.54 billion, followed by South Korea (US$2.97 billion), and China (US$1.75 billion). Hanoitimes

Ngoc Thuy 

FDI and the 30-year concern about high-tech applications

FDI and the 30-year concern about high-tech applications

Only 5 percent of foreign invested projects in the last 30 years have used high technology. This is a lesson for Vietnam during the new FDI (foreign direct investment) wave.

How to attract high-quality foreign direct investment

How to attract high-quality foreign direct investment

Industrialization requires high-quality foreign direct investment (FDI). Many issues must be addressed, including how to developed a skilled workforce.

MORE NEWS

Ngoc Linh ginseng helps Central Highlands locals out of poverty

Growers in the Central Highlands provinces dreamed of escaping poverty when they planted Ngoc Linh ginseng which has made an economic contribution to improving local farmers’ living conditions.

Soc Trang’s Khmer pagoda features giant Buddha statue

With the long-standing bonds of the Kinh, Khmer, and Hoa ethnic groups, Soc Trang boasts a special cultural identity that makes it an outstanding spiritual destination for tourists and Buddhist followers from far and wide.

Smart-homes getting cheaper in Vietnam

In Vietnam, a smart-home installation package costs VND14-25 million.

Vietnamese nationals account largest proportion of Japan’s foreign worker population

Vietnamese nationals account for 25.4% of the total 1.82 million foreign workers who were working in Japan as of the end of October last year, according to the Japanese Ministry of Health, Labour and Welfare (MHLW).

Mekong Delta develops more OCOP products

The Cuu Long (Mekong) Delta’s 12 provinces and the city of Can Tho are developing more products under the country’s “One Commune-One Product” programme.

Major Vietnamese paintings worth millions of dollars at global auctions

2022 represented a successful year for the Vietnamese painting market as three more pieces were auctioned at more than US$1 million each, bringing the total number of valuable paintings to 19. Let’s take a closer look at some of them.

Vietnamese American singer brings Tet Holiday joy to disadvantaged children

In hope to bring the children who lost their parents because of Covid-19 a warm spring holiday, Vietnamese American singer Ha Phuong spent a day to enjoy Tet with them.

How will the economy fare in 2023?

Vietnam’s economy had a prosperous year in 2022 with GDP growth rate of 8.02 percent, a one-decade high.

Female Vietnamese badminton star Thuy Linh placed 50th in world rankings

Vietnamese badminton star Nguyen Thuy Linh has risen to 50th position in the world’s latest singles women rankings, according to the Badminton World Federation (BWF).

Phin Ho ‘shan tuyet’ tea –specialty of Ha Giang

Apart from stilt houses and seemingly endless terraced paddy fields, “shan tuyet” tea, a famous specialty of Phin Ho village, is one of the special things visitors cannot forget once setting foot in Tay Con Linh Mountain in Ha Giang.

Discovering art of making vegetarian dishes in Tay Ninh

Religions and beliefs have made considerable contributions to the culinary culture of Tay Ninh.

Hoi An, HCM City among world's top 25 trending destinations in 2023: TripAdvisor

Germany’s famous travel site reisereporter.de has run an article highlighting the world’s top 25 trending destinations for 2023, including Vietnam’s Hoi An ancient city and Ho Chi Minh City, recently voted by readers of TripAdvisor.

Make-in-Vietnam sleeping machine developed by professor

FRENZ Brainband helps users have faster, tighter and deeper sleep. It can also be used for relaxing and enhancing concentration when working.

Paris Agreement: Lessons on independence, self-reliance, int’l solidarity

The signing of the Paris Agreement on ending the war and restoring peace in Vietnam on January 27, 1973, was a resounding victory of Vietnam’s revolutionary diplomacy in the Ho Chi Minh era.

PM: Lunar New Year comes with new energy

Prime Minister Pham Minh Chinh chaired a meeting of permanent Cabinet members in Hanoi on January 27, speaking of new energy of the nation following Tet (Lunar New Year), the biggest festival in Vietnam.
back_to_top