Thai Nguyen, only Vietnamese locality enjoying trade surplus of over 10 bln USD in 2022

Sunday, 29/01/2023 18:30
The northern mountainous province of Thai Nguyen is the only Vietnamese locality that produced a trade surplus of more than US$10 billion in 2022.
leftcenterrightdel

The centre of Thai Nguyen province (Photo: baothainguyen.vn) 

The province surpassed industrial hubs such as Binh Duong, Dong Nai and Bac Ninh, said Radio the Voice of Vietnam.

The northern mountainous province generated an export surplus of US$11.6 billion in 2011, topping the list of localities that produced a trade surplus for the whole year, said the General Department of Vietnam Customs.

Statistics show the province raked in more than US$31 billion from exports (up 6.6% year on year), but only spent US$18.3 billion on imports (up 3.3% year on year).

Thai Nguyen mainly exports electronic products, garments, non-ferrous metals and non-ferrous metal concentrates, transport spare parts, paper and paper products. Its main imports included raw materials for animal feed processing, iron and steel products, machinery and equipment and spare parts, fabrics and textile materials.

According to the Thai Nguyen Provincial Portal, the locality last year attracted a large number of investors interested in production projects that mainly serve export needs. Other operational businesses applied for an increase in capital to expand production in the locality.

Notably, Samsung Electro-Mechanics Vietnam decided to pump an additional US$920 million into its expansion project, starting in 2022. Meanwhile, Sunny Opotech committed to pouring US$350 million into its second project in the locality.

The local export value in recent years has always grown by over 10% per year, directly contributing to the province’s export value.

Foreign suppliers pay 1.8 trillion VND in taxes

Foreign suppliers have paid taxes worth 1.8 trillion VND (76.7 million USD) via the official portal serving their operations in Vietnam, according to the Vietnam News Agency.

leftcenterrightdel

Tax payers at the Hanoi Tax Department (Photo: VNA)

Of the sum, Meta (Facebook) contributed 34.5 million EUR, Google 28.8 million USD, and Apple 174 billion VND.

The General Department of Taxation’s portal https://etaxvn.gdt.gov.vn/nccnn/Reques was exclusively developed for foreign suppliers and put in place on March 21 last year.

So far, it has seen 45 suppliers registering and paying taxes.

Vietnam’s FDI projected to reap up to 38 bln USD in 2023

According to the Foreign Investment Agency under the Ministry of Planning and Investment (MPI), Vietnam is likely to attract 36-38 billion USD in foreign direct investment (FDI) in 2023. The figure was nearly 22.4 billion USD in 2022.

Deputy Director of the FIA Do Van Su said disbursement of foreign investment this year is expected to hit 22-23 billion USD, reported by the Vietnam News Agency.

leftcenterrightdel

Workers working in a FDI businesses (Photo: baochinhphu.vn)

Su acknowledged that the opening of China’s economy might affect Vietnam's foreign investment attraction, adding that China remained the leading investment destination in the region, so when they opened up, capital will flow into this market while that to Vietnam and other economies in the region will be limited.

On the contrary, the investment capital movement of the Republic of Korea (RoK), Japan, and Taiwan (China) will be accelerated. This shift will be accelerated until 2025, and Vietnam will be a preferred investment destination for investors, he added.

Currently, the RoK, Japan and Taiwan (China) are Vietnam’s major sources of foreign investment and they have constantly increased their investments in Southeast Asian countries.

According to FIA, essential factors for FDI to continue to prosper in 2023 include economic growth results in 2022 and endless efforts of authorities in improving the business investment environment, creating trust with investors, and effectively exploiting the advantages of free trade agreements.

Minister of Planning and Investment Nguyen Chi Dung said that Vietnam had adopted a selective approach to attracting foreign investment inflows which will contribute to the country's implementation of the sustainable development strategy.

Priority will be given to projects using new and green technologies, with high added value, modern corporate governance, and high spillover effects, ensuring technology transfer, and being integrated with global supply and production chains, Dung said.

To lure more foreign investment, he emphasised the importance of developing innovation and financial centres at the regional and international levels, creating a driving force for socio-economic development in the coming period, adding that stabilising the macro-economy, improving infrastructure and the quality of human resources will be also needed.

So far this year, Vietnam saw good signs in foreign investment attraction as nearly 900 million USD of FDI have been registered in the northern province of Bac Giang.

On January 7, China’s Yadea Group said it will invest 100 million USD in a factory to manufacture and assemble electric motorcycles with an expected capacity of about 2 million vehicles per year in the province's Tan Hung Industrial Park. Covering an area of 23.2ha, the project will be implemented in the second quarter of 2023.

Earlier on January 2, Bac Giang province granted an investment certificate to Singapore’s Ingrasys Pte Ltd, the Fulian precision technology factory project investor signed an MoU with Chinese investor Hainan Longi Green Energy Technology Co Ltd on a project to produce solar panels.

Both projects will be conducted from the first quarter of 2023, with a combined registered capital of about 761 million USD.

Foreign investment in Vietnam remained a bright spot in the country’s 2022 economic panorama, despite experiencing a year-on-year decrease in value, thanks to its disbursement reaching a five-year high.

Data from the MPI showed as of December 20, there were 2,036 newly-registered FDI projects worth 12.45 billion USD, up 17.1% year-on-year in the quantity, but down 18.4% in value.

In addition, 1,107 projects had their capital raised with a total amount of 10.12 billion USD, up 12.4 % and 12.2 % year-on-year, respectively.

leftcenterrightdel

Photo for illustration (Source: vneconomy.vn) 

Capital contributions and share purchases (foreign indirect investment or FII) were worth 5.15 billion USD, down 25.2 %. This figure made the total foreign investment in the country in 2022 top 27.7 billion USD.

Meanwhile, FDI disbursement in 2022 hit nearly 22.4 billion USD, up 13.5% year-on-year, making it the highest amount in the past five years, the General Statistics Office (GSO) reported.

By the end of last year, the country was home to 36,278 valid projects with a total registered capital of approximately 438.7 billion USD. The accumulated realised capital of foreign investment projects topped 274 billion USD, equalling 62.5 % of the total valid registered investment capital.

Foreign investors poured funds into 19 out of the 21 sectors in the national economic classification system, of which the processing and manufacturing industry maintained its lead in terms of attracting FDI with a combined investment of over 16.8 billion USD, accounting for 60.6 % of the country’s total.

Among the 108 nations and territories pouring capital into Vietnam this year, Singapore ranked first with 6.46 billion USD. It was followed by the RoK and Japan.

RoK tops list of countries with most foreign visitors to Vietnam

The Republic of Korea (RoK) topped the list of countries and territories with most foreign visitors to Vietnam in January 2023, Radio the Voice of Vietnam quoted the figure of the General Statistics Office of Vietnam (GSO) on January 29.

According to data released the GSO, Vietnam welcomed 258,000 Korean arrivals in January, representing a 13-fold increase month on month and a 72fold increase year on year.

leftcenterrightdel

Located in central Vietnam, UNESCO-recognised Hoi An is one of the major tourist attractions for Korean visitors. (Photo: travelelog.com) 

The RoK was followed by the United States (nearly 78,000 arrivals), Thailand (55,000), Australia (44,225) and Malaysia (37,267).

Besides, Japan, Cambodia, Singapore, Taiwan (China) and the United Kingdom were all countries and territories with large numbers of tourists to Vietnam in the first month of 2023.

The GSO reported Vietnam attracted 871,200 foreign arrivals in January 2023, an increase of 23.2% over the previous month and 44.2 times higher than the same period last year.

The number of foreign arrivals by air was 800,100, accounting for 91.9% of the total and 46.1 times higher than the same period last year. Meanwhile, the number of travelers by road and sea reached 65,500 and 5,600 respectively, representing corresponding increases of 27.8 times and 564.5 times./.

Compiled by BTA

RELATED NEWS

Comment
FullName
Email
Contents

/

Confirm