This infographic from Tuoi Tre compares the exports of foreign invested enterprises to domestic firms, and there is a big difference. Foreign invested enterprises export almost three times more in terms of dollar value than local firms.
What to watch: There is clearly an over dependence on foreign firms in terms of Vietnam’s economic growth and this speaks to why Vietnam’s leadership is so keen to see technology and skills transfer from foreign firms to local enterprises. That said, Tuoi Tre also reported last week domestic firms didn’t have the capacity for new technology or simply weren’t interested. In which case, more incentive may be needed.
