More than half of FDI enterprises in Vietnam reported losses

Workers sewing masks at Dong Xuan Knitting Company

More than 14,100 enterprises with foreign direct investment capital operating in Vietnam, accounting for 51% of the total number of foreign-invested enterprises, reported losses in 2020, according to a recent report by the Ministry of Finance to the Prime Minister.

Specifically, the number of losses that these enterprises reported in 2020 is more than VND151 trillion ($6.56 billion).

According to this report, the majority of businesses operating in the telecommunications and software sectors, which were supposed to be beneficial during the COVID-19 pandemic, also reported losses and did not perform well in 2020.

Two foreign direct-invested companies that have reported increased revenue in 2020 are Airplay JSC and Shopee with reported revenue figures of VND4.5 trillion and VND2.3 trillion respectively, accounting for 58 % of the total revenue of foreign direct investment enterprises.

However, these two enterprises also reported losses, reducing capital sources and contributing to the State budget.

According to statistics of the Ministry of Finance, domestic revenue of foreign direct investment enterprises in 2020 reached more than VND206 trillion, down VND6.1 trillion compared to 2019.

Translated by from RFA:

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