Tin mới
FDI firms less optimistic despite revenue rise (29/02)
29/02/2012 - 10 Lượt xem
The survey, which provides inputs for the provincial competitiveness
index (PCI) 2011, was conducted among businesses operating in five
sectors namely manufacturing, construction, services, agriculture and
mining.
Jim Winkler, project director of USAID/VNCI, the sponsor of the PCI 2011 report, said the revenue of FDI enterprises averaged out at US$1.3 million last year, surging US$300,000 versus 2010. The return on investment increased from 11% in 2010 to 22% last year.
However, most of the FDI enterprises surveyed showed a less optimistic view about the business outlook for the next two years. Only 39% of the respondents said they are optimistic about their business outlook, versus 66% in 2010.
The manufacturing enterprises hold the least optimistic view, with only 33% planning to expand business.
The percentage of loss-making FDI companies based on their own statements rose from 19% to 22%.
Winkler said FDI enterprises had limited add-on effect on domestic businesses, which should be desired for. The foreign-invested firms imported up to 57.5% of goods and services, against 40% purchased locally.
The fact that FDI enterprises lack connectivity with the domestic private sector has resulted in limited spillover effects in terms of technology, management experience and productivity improvement, said Winkler. “This is a question that policymakers must answer if wanting to boost the capacity of local enterprises.”
He informed one-third of the FDI firms operating in Vietnam had once considered investing in other nations like Thailand, Cambodia and China. Among those, 72% have chosen Vietnam over other countries, and 28% decided to invest in Vietnam as part of their multinational investment strategies.
FDI companies choose Vietnam because of cheap labor, political stability and incentives for land and taxes. Up to 65% of these enterprises operate in the industries with low labor costs such as textile, garment, leather, footwear, electronics and food processing.
Meanwhile, the factors affecting operation quality including intellectual property protection, accessibility to policymakers, investment protection and contract enforcement are poorly evaluated by FDI companies.
According to the survey, 55% of the FDI businesses said they had to pay less informal costs when undergoing customs clearance procedures, while the percentage was 70% in 2010.
The FDI enterprises participating in the survey are from 45 nations and territories, accounting for 16% of the total FDI firms in Vietnam, said the General Statistics Office. Some 75% of the FDI companies come from Asia like Taiwan, South Korea and Japan.
Most of the surveyed enterprises are small-scale, with 75% of them having over 300 workers and 11% employing over 500. Some 63% of the respondents have registered capital of less than US$2.5 million, while only 13% over US$25 million.
Source: VietnamNet
Jim Winkler, project director of USAID/VNCI, the sponsor of the PCI 2011 report, said the revenue of FDI enterprises averaged out at US$1.3 million last year, surging US$300,000 versus 2010. The return on investment increased from 11% in 2010 to 22% last year.
However, most of the FDI enterprises surveyed showed a less optimistic view about the business outlook for the next two years. Only 39% of the respondents said they are optimistic about their business outlook, versus 66% in 2010.
The manufacturing enterprises hold the least optimistic view, with only 33% planning to expand business.
The percentage of loss-making FDI companies based on their own statements rose from 19% to 22%.
Winkler said FDI enterprises had limited add-on effect on domestic businesses, which should be desired for. The foreign-invested firms imported up to 57.5% of goods and services, against 40% purchased locally.
The fact that FDI enterprises lack connectivity with the domestic private sector has resulted in limited spillover effects in terms of technology, management experience and productivity improvement, said Winkler. “This is a question that policymakers must answer if wanting to boost the capacity of local enterprises.”
He informed one-third of the FDI firms operating in Vietnam had once considered investing in other nations like Thailand, Cambodia and China. Among those, 72% have chosen Vietnam over other countries, and 28% decided to invest in Vietnam as part of their multinational investment strategies.
FDI companies choose Vietnam because of cheap labor, political stability and incentives for land and taxes. Up to 65% of these enterprises operate in the industries with low labor costs such as textile, garment, leather, footwear, electronics and food processing.
Meanwhile, the factors affecting operation quality including intellectual property protection, accessibility to policymakers, investment protection and contract enforcement are poorly evaluated by FDI companies.
According to the survey, 55% of the FDI businesses said they had to pay less informal costs when undergoing customs clearance procedures, while the percentage was 70% in 2010.
The FDI enterprises participating in the survey are from 45 nations and territories, accounting for 16% of the total FDI firms in Vietnam, said the General Statistics Office. Some 75% of the FDI companies come from Asia like Taiwan, South Korea and Japan.
Most of the surveyed enterprises are small-scale, with 75% of them having over 300 workers and 11% employing over 500. Some 63% of the respondents have registered capital of less than US$2.5 million, while only 13% over US$25 million.
Source: VietnamNet
