Vietnam targets parity between FDI, domestic firms

vietnam targets parity between fdi, domestic firms hinh 0

There was a general consensus among the participants that increased links between FDI firms and the nation’s SME sector, in particular, would facilitate the process of international integration on a fairer footing.

However, he also warned that according to the latest report by the International Finance Corporation, only 21% of Vietnamese firms were taking part in the global supply chain, which was much lower than in neighbouring countries.

Furthermore, according to the Organisation for Economic Cooperation and Development, added value generated by the FDI sector now accounts for 48.8% of total export turnover in Vietnam, as against just 12.7% by domestic firms.

Most importantly, only 14% of Vietnamese firms are currently functioning as parts suppliers to FDI companies, since the latter favour suppliers from their home countries.

Ryu Hang Ha, co-chair of the Korean Chamber of Commerce in Vietnam, said that thanks to the Vietnam-Korea Free Trade Agreement (VKFTA) signed in 2015, bilateral trade had been increasing significantly. The nations are set to meet the two-way trade goal of US$70 billion by 2020, and 71% of Korean companies are satisfied with Vietnam’s management of foreign business entities.

This year, the midterm forum includes four sessions on employment, supporting industries development, infrastructure investment, the fourth industrial revolution, free trade agreements, elimination of non tariff barriers, private sector investment and improving law enforcement.

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