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COVER STORY

EXPORTS BY FDI SECTOR OUT OF TOTAL, 2013-2021

350 Total export value ($ billion) Export value of FDI sector ($ billion) 336.3
100%
Proportion (%)
300 282.6
264.2 80%
70.1% 70.9% 243.7 245.2
250 68.2% 71.7%
62.5% 69.3% 72.9%
61.3% 215.1 70.4% 202.8
200 183.2 60%
176.5
162 171.7
150.2 152.5
150 132
123.8 40%
110.5
93.9
100
80.9
20%
50
0 0%

2013 2014 2015 2016 2017 2018 2019 2020 2021
Source: General Department of Vietnam Customs (GDVC)

and product quality,” he explained. “As of chip manufacturing plant in Vietnam, and And at Honda Vietnam, exported CBU
the end of 2021, Samsung Vietnam’s total $59 billion worth of products have been (completely-built-up) units stood at 213,492
accumulated investment capital was $18 manufactured since. It continued to play last year, an increase of 31.9 per cent
billion, or 102 per cent of the investment a key role in exports from the Ho Chi against 2020. Despite being affected by
capital of $17.7 billion approved in 2020.” Minh City Hi-Tech Park last year. Covid-19, the automaker still ensured the
Another major foreign player is Intel Nestlé Vietnam, meanwhile, has export of components and spare parts,
Vietnam, producer of semiconductor chips. invested $132 million in Vietnam over the earning revenue of $70.8 million, up 38
Ms. Ho Thi Thu Uyen, Director of External last two years to double its production of per cent.
Relations at Intel Vietnam, said that amid instant coffee for export, turning Vietnam Regarding the export structure, FDI
the pandemic the demand for tech products into a production center for liquid food enterprises unsurprisingly dominate in
with “Intel insight” was quite high. “Our products for Asia and Australia. key items such as phones and components,
products are necessary for the global mar- At the end of last August, South Korea’s and electronics and computers. Even in
ket,” she added. “Intel Vietnam continues LG Group officially poured a further $1.4 footwear, which at first glance would
to maintain production and play a key billion into its Vietnam operations, bringing appear to be the domain of local enterprises,
role for Intel globally. Our products are its total investment in northern Hai Phong the FDI sector posted more than $14
diverse, which expresses the capacity of city to $4.65 billion. The factory is expected billion in exports last year, up 5.7 per cent,
our workers in Vietnam, and ongoing to increase output of OLED screens from or $754 million, while domestic enterprises
demand will be an opportunity for us to about 10 million a month to 13-14 million, recorded $3.75 billion, up 5.8 per cent, or
continue to expand in the future.” 2022 with export revenue to increase by about $206 million, according to Vietnam Cus-
marks 15 years since Intel invested in its $6.5 billion this year. toms. It can’t be denied that the FDI sector
makes a substantial contribution to Viet-
nam’s economic development, especially
TRADE SURPLUS / DEFICIT large multinational corporations.
33.8 33.8
Vietnam’s trade surplus / deficit ($ billion)
GOING HIGHER
FDI sector’s trade surplus / deficit ($ billion) 29.8 According to research by the National
27.01 Center for Socio-Economic Information
24.7 and Forecast (NCIF) at the Ministry of

21.4 Planning and Investment (MPI), behind
19.9 these impressive achievements in exports
over recent years is the fact that FDI enter-
prises have adopted correct, professional
13.3 measures.
10.8
9.7 Mr. Ho shared the results of the FDI
6.4 6.8 sector as a whole, not just of Samsung, at
4.08 a recent seminar on foreign investment.
2.3 1.7 2.1 Vietnam provides an attractive investment
0.297 environment, he told the gathering, with
abundant labor, a stable socio-political
-3.5
situation, sound production and distribu-
2013 2014 2015 2016 2017 2018 2019 2020 2021 tion infrastructure, and attractive invest-
ment incentives. In the period from April
Source: National Centre for Socio-Economic Information and Forecast (NCIF)
to June 2021, due to Samsung Vietnam’s

12 | VIETNAM ECONOMIC TIMES | MARCH 2022 www.en.vneconomy.vn