FDI sector exports increasing: There is more to do

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	Post accession FDI boom

FDI enterprises account for a large amount of Vietnam's export turnover. Photo: S.T.

Increasing evenly over years

According to the Ministry of Investment and Planning (MOIP), in the first two months of this year, FDI (including crude oil) exports reached to $US 19.709 billion, grew 16.7% over the same period of 2016 and accounted for 72% of the total of export turnover.

Looking back at the 2011-2015 period, exports from the FDI sector accounted for 65.2% total exports of the country.

In particular, the exports amount in this sector in total exports has always tended to increase over years (54.1% in 2010, 56.9% in 2011, 64% in 2012 and 66.9% in 2013). And in 2014, exports of the FDI sector reached $US 101.59 billion (increased 15.2% from 2013) and accounted for 68% of export turnover. In 2015, FDI sector exports accounted for 70.5% of total exports in the country.

Specifically, in 2016, FDI (including crude oil) exports were estimated at $US 125.9 billion, increased by 10.2% over the same period of the previous year, accounted for 71.55% of exports turnover.

Foreign Direct Investment Department considers that FDI enterprises have actually changed the structure of exported goods, in the direction of reducing the proportion of mining products, primary products, gradually increasing the proportion of manufactured goods. Before 2003, crude oil accounted for nearly half of the exports of foreign investment, then in 2007, crude oil accounted for only about 7% of total export turnover.

According to Deputy Minister of Planning and Investment Nguyen The Phuong, the FDI sector has contributed mainly to the growth of export turnover. High growth in exports is not only one of the key factors to reduce exchange rate pressures and improve international balance of payments but also one of the key factors contributing to Vietnam's economic growth, to help it not being drastically reduced over the last years.

Explaining that the FDI enterprises make up a large part of Vietnam's export turnover, especially in the context of domestic and world-wide economy still facing difficulties, Mr. Pham Duy Toan – an expert on import-export said that the reason is FDI enterprises have many advantages in business management, long-term investment strategy; ensuring financial resources and especially have great advantages in export markets.

Needing to improve the investment and business environment

In order to maintain the export sector's achievements in the next few months of 2017, it is needed to be further improved in the investment and business environment.

The Foreign Investment Department said that in the coming time, we must concentrate on perfecting the legal system and policies on investment in a consistent, open and transparent manner; being predictable, facilitating investors and being competitive with other countries in the region. Strengthening legal frameworks to protect investors in accordance with international practice.

In addition, the improvement of infrastructure and training of high quality human resources should continue. In particular, mobilize resources to implement the "Comprehensive Infrastructure Program to 2020", which was approved by the Prime Minister. Urgently implement action programs to develop human resources; and implement employees training based on enterprise needs.

FDI forecast warily brightens

Especially, promote the implementation of policy dialogue with investors and enterprises through the Vietnam Business Forum. Implementing the Vietnam-Japan Joint Initiative, investor support models such as Keidanren, Japan Desk, Korea Desk, Ichi Desk Policy Dialogue.

In addition, according to Mr. Pham Duy Toan, attention should be paid to the provision of information related to the reform of Customs and Tax procedures for FDI enterprises timely, promptly and completely.