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You are here: Home / Vietnam’s GDP too heavily dependent on foreign-invested enterprises: economists

Vietnam’s GDP too heavily dependent on foreign-invested enterprises: economists

April 10, 2019 by

Commenting about the reliance of Vietnam’s economy on FIEs (foreign invested enterprises), one economist noted that “when FIEs sneeze, the Vietnamese economy catches a cold”.

Vietnam is listed among the economies with the highest GDP growth rates in recent years. According to the General Statistics Office (GSO), the rate was 6.21 percent in 2016, 6.81 percent in 2017, 7.07 percent in 2018 and 6.71 percent in the first half of 2019.

Because of the problem with Samsung, Vietnam’s GDP growth rate in Q1 2018 was low, just 5.1 percent in comparison with the 5.5 percent in the same period of 2016. The figure was far below the 6.7 percent GDP growth rate of the entire year of 2017.

“The fact that Samsung recalled its products not only affected Vietnam’s exports, but also led to a GDP growth rate decrease. This shows that Vietnam’s economy depends too heavily on FIEs,” said Do Thien Anh Tuan, a respected economist.

Linh Ha

Vietnamese IPs and Ezs attract $10b FDI in nine months

Industrial zones (IPs) and economic zones (EZs) attracted 397 foreign direct investment (FDI) projects with estimated registered capital of US$10.1 billion in the first nine months of this year.  

Tough regional competition causes risks for Vietnam in FDI attraction

The best companies in the US, Europe and Japan are not picking Vietnam but Malaysia, Indonesia and Thailand, where developed supporting industries and highly-qualified human resources are already in place.  

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