From January 1 to November 15 this year foreign invested enterprises recorded a trade surplus of US$43.49 billion whereas Vietnamese firms recorded a deficit of US$19.05 billion, The Investor is reporting.
This speaks to Vietnam’s dependence on foreign firms in its export sector but also the vastly different operating environments for foreign firms versus local enterprises. Tax breaks for multinationals and access to cheaper loans from foreign banks as well as easier means by which to borrow all work in favour of foreign firms in Vietnam. Not to mention extensive experience and fundamental understandings of consumer preferences compared to their domestic counterparts.