FDI sector posts over 14 billion USD in four-month trade surplus

Thursday, 18/05/2023 16:03
Despite an overall export decline due to the shortage of orders, foreign direct invested (FDI) businesses still posted more than 14 billion USD in trade surplus in the first four months, further affirming their role as the main growth driver of the economy, reported Vietnam News Agency.
 A garment factory in Vietnam (Photo: VNA)

Trade turnover totalled 206.76 billion USD during January - April, down 15.3% year on year, with those of FDI and domestic businesses at 144.02 billion USD and 62.74 billion USD, respectively dropping 15.1% and 15.8%, according to the General Department of Vietnam Customs.

The slow global economic recovery and tightened monetary policies in many countries have lowered the consumption demand in some major partners of Vietnam, leading to decreases of orders and a 13% fall in the four-month export revenue.

However, the FDI sector still recorded a trade surplus of 14.18 billion USD as a result of 79.1 billion USD in exports, down 12.4%, and 64.92 billion USD in imports, down 18.3%. Meanwhile, the domestic one saw a trade deficit of 8 billion USD.

In 2022, Vietnam shipped abroad 371.5 billion USD worth of goods, including 275.9 billion USD (or 74%) by FDI firms, statistics show.

The FDI sector plays a considerable role in the growth of the Vietnamese economy as seen in its contributions to export revenue, job creation, and formation of supply chains in key export industries like electronics, garment, and footwear production, said Phan Huu Thang, former Director of the Foreign Investment Agency at the Ministry of Planning and Investment, as cited by Dau tu (Vietnam Investment Review).

Illustrative photo (Source: VOV) 

The continuous rise of trade surplus for the past nearly 10 years is partly attributed to the substantial role of FDI enterprises, which have helped Vietnam become one of the 20 largest trading economies. Its economy’s total foreign trade topped 730 billion USD by the end of last year.

However, the overdependence on the FDI sector for export has also revealed certain problems. While domestic businesses have witnessed a serious trade deficit, large exporters, mainly FDI firms, in big export industries like garment, electronics, and footwear have had to apply lay-offs or furloughs due to order shortages.

Economist Le Quoc Phuong pointed out that in recent years, export has grown strongly in just quantity instead of quality. The added value in overseas shipments is still lower than that in other ASEAN countries such as Thailand, Singapore, and Indonesia.

FDI businesses is in integral part of the economy, but it also is necessary to gradually improve the competitiveness of domestic firms and their engagement in supply chains for the FDI sector right in the domestic market, he noted.

Canadians to receive first VinFast VF8 series in June 3023

A shipment of 781 electric vehicles (VF8 series) manufactured by leading Vietnamese automaker VinFast arrived at the Canadian port of Nanaimo in British Columbia on May 18, the Voice of Vietnam qouted VinFast as saying that.

All 781 electric vehicles (VF8 series) manufactured by leading Vietnamese automaker VinFast will be delivered to Canadian customers in June 2023. (Photo: VinFast) 

This is the first shipment of VinFast’s VF8 Eco and Plus series to be delivered to Canadian customers.

The Eco and Plus models boast the ranges at 264 miles and 243 miles per charge respectively. The Eco might boast the longest driving range but the Plus model delivers the most luxury features, including a panoramic glass roof, leather upholstery, and second-row captain's chairs.

VinFast says it will provide 10-year/125,000-mile warranty coverage or 10-year/unlimited mileage for the vehicle, along with mobile repair and 24/7 rescue service during the warranty period.

According to the automaker, all of its VF8s have passed tests in accordance with the regulations of the National Highway Traffic Safety Administration of the US.

The firm has also been licensed to market its VF8s in both the US and Cananda. It is expected that the firm will hand over the VF8s to customers from June 2023.

In Canada, the VF8 Eco version changes hand at CAD53,600, while the VF8 Plus version starts at CAD59,200. In addition, the Plus version also has the option to upgrade the power from 260 kW to 300 kW with an additional price of CAD1,500/vehicle.

Earlier, a shipment of 1,098 VF8s reached the US port of Benicia in California on May 12.

Vietnamese, Russian scientists conduct joint survey on marine resources

Russian research vessel Akademik Oparin has arrived at Nha Trang port in the central province of Khanh Hoa to conduct a joint survey on marine resources as part of the "Roadmap for cooperation in marine research for the 2018-2025 period" between the Vietnam Academy of Science and Technology (VAST) and the Russian Academy of Sciences (RAS), reported the Voice of Vietnam.

Russian research vessel Akademik. 

It marks the 8th research trip by Akademik Oparin in Vietnam's territorial waters to date.

Speaking at a ceremony to welcome the ship on May 17, which was connected with the capital city of Hanoi, and Moscow and Vladivostok of Russia, VAST President Chau Van Minh  reviewed the outcomes of the vessel's seven field trips, especially in training young scientists of the VAST as well as scientific cooperation between the two sides.

Panchenko Vladislav Yakovlevich, RAS Vice President in charge of international cooperation, highlighted the importance of maritime research collaboration in promoting scientific research and training at the two academies. He also appreciated the VAST’s efforts and active cooperation for the 8th trip to proceed as planned.

Valery Falkov, Minister of Science and Higher Education of Russia, highly appreciated the long-term cooperation between the two academies and expressed support for the implementation of the signed roadmap until 2025 and fostering collaboration in the future, contributing to enhancing the long-standing traditional friendship between the two countries.

On May 18, Akademik Oparin with nearly 40 scientists from the two academies was scheduled to embark on the survey journey that will last for about one month in Vietnam's territorial waters.

Vietnam Restaurant and Bar Week 2023 slated for late May

More than 100 chefs and bartenders across the country will gather at Vietnam Restaurant and Bar Week 2023 scheduled to run from May 20 to June 4 in Hanoi, Ho Chi Minh City, and Da Nang, reported the Voice of Vietnam.

The week is part of Flavours Vietnam 2023, the fourth annual gastronomy series and the most flavourful celebration of Vietnamese cuisine in the country. 

This year the event has been upgraded to feature an extension of two weeks, an expansion to include the beach city of Da Nang, and an increase in the number of restaurants and bars. It is expected to be an exciting and priceless culinary exploration that taps into each touch point whilst paying tribute to the local food culture.

The week draws the participation of famous chefs from 42 restaurants nationwide who are expected to help diners discover the delicious cuisine of all three of the country’s regions.

Furthermore, customers will have the chance to sample a range of innovative mixes from leading bartenders in 71 unique venues nationwide.

Flavours Vietnam 2023 is jointly organised by Mastercard International Inc., a provider of payment processing products worldwide and Vietcetera Company Limited, a provider of a digital platform intended to connect Vietnam with the world.

Themed “Taking Vietnam’s Food & Beverage industry to the next level”, the fourth and largest edition of Flavours Vietnam features a range of enticing events, such as the Vietnam Food & Beverage Conference, Banh My Awards, Vietnam Restaurant and Bar Week, and Rising Chefs Challenge./.

Compiled by BTA