The expert from VCCI said that of every 10 dong worth of export turnover, 7.5 dong belong to the foreign direct investment (FDI) sector. The figure was five out of 10 dong some years ago.
A GSO (General Statistics Office) report showed that in the first seven months of 2017, total export turnover reached $115.2 billion, up by 18.7 percent in comparison with the same period last year. While Vietnamese enterprises exported $32.2 billion worth of products, foreign invested enterprises (FIEs) exported $83 billion.
Citing the figures, economists have expressed deep concern that the Vietnamese economy depends heavily on the FDI sector.
In the first seven months of 2017, total export turnover reached $115.2 billion, up by 18.7 percent in comparison with the same period last year.
“The contributions by the FDI sector to the national economy are huge. But we need to think about what we will have if FIEs leave,” said Nguyen Thi Tue Anh, deputy head of the Central Institute of Economic Management (CIEM).
FIEs make up a large proportion of Vietnam’s GDP, and productivity in the FDI economic sector is the highest, but Vietnamese have not received benefits from this.
Tuan said while FIEs in Vietnam have been joining global production chains, they haven't helped Vietnamese enterprises to join.
VCCI has learned from annual surveys that FIEs only buy 26.6 percent of input materials from Vietnamese enterprises, while the remaining parts are imported from holding companies.
“The cooperation between FIEs and Vietnamese enterprises is inconsiderable,” Tuan commented.
He believes in the inconsiderable cooperation between FIEs and Vietnamese enterprises and there are three reasons behind this. First, the low quality of the labor force. Second, low technology and low capability of absorbing technology. Third, the long distance in geographical position.