FDI - An Impressive Year of Success

 FDI - An Impressive Year of Success

Many records in the economic growth has imprinted with the FDI sector

Investment in Vietnam - 2017 is coming to an end with many records with the breakthrough in economic growth, bearing the imprint of FDI sector. First of all, foreign capital into Vietnam reached its highest level in the past 10 years and capital disbursement sets a record ever. Indirect impression is that the growth of the manufacturing and processing industry is highest in the last 7 years, along with the sudden growth of import and export at more than 20%, far exceeding the target.

Resilience of 2017

Professor, Nguyen Mai, Chairman of the Association of Foreign Investment Enterprises shared that "the most impressive record to him is that the first time, Vietnam's total import-export turnover exceeded mark of US$ 400 billion. Thanks to it, Vietnam's export-import rank (by WTO ranking) has increased markedly."

Specifically, commodity exports rose rank from 50th in 2007 to 26th in 2016; Imports also increased in the corresponding period from 41st to 25th and will likely continue to increase in 2017. "All of those achievements cannot achieve without participation of the FDI block, "Mai highlighted.

These victories are contributed thanks to two major groups: Samsung and Formosa.

For Samsung, it is estimated that 2017 generated VND1.21 billion of production value, an increase of 31 percent against 2016 and export volume in 2017 surged compared to previous years. Based on the production value of Samsung, South Korean investors contributed 5.43 percentage points to the growth rate of 14.4% of the entire manufacturing, processing industry in particular and 3.88 percentage point to an increase of 7.85% in the whole industry in 2017 in general.

Formosa is a new corporation newly operated in 2016 but has achieved phenomenal growth last year. Accordingly, the group generated around VND14.8 trillion of production value in 2017, up 332.2 percent against 2016, contributing 0.19 percentage points to the growth of the manufacturing and processing industry and 0.14 percentage points across the industry. Only 2 of these investors also contributed nearly 40% of production value for the entire manufacturing and processing industry in particular and more than 50% of the whole industry's production value in general.

Thus, it is estimated that in 2017 more than US$ 20 billion of foreign capital introduced into the economy, closely filling the gap between registered capital and realized capital. These positive movements show that the quality of FDI inflows is increasing, soon entering the economy and bringing real value to growth, rather than just virtual statistics.


Related news