VietNamNet Bridge – More and more foreign invested enterprises (FIEs) have reported losses, though they continue to enjoy attractive investment incentives. Economists say this is ‘abnormal’.
There are 21,400 FIEs in Vietnam
A Ministry of Finance’s (MOF) report presented at a recent working session with Deputy PM Vuong Dinh Hue showed a high proportion of unprofitable FIEs.
There are 21,400 FIEs, which account for 3 percent of total existing enterprises in Vietnam. FIEs maintained high growth rates in revenue and profits from 2011 to 2017. In 2017 alone, FIEs’ turnover soared by 28 percent compared with the year before, while their asset growth rate reached 22 percent and stockholder equity 14 percent. Continue reading “FDI paradox: the bigger incentives FIEs get, the bigger losses they incur”