Many FDI firms reporting losses due to economic difficulties
Total losses estimated at $7.1 billion in 2021.
Though the FDI sector is considered a growth driver and has made great contributions to the State budget, many enterprises have still incurred losses in the face of economic difficulties and challenges, especially the impact of Covid-19.
More than 14,000, or 55 per cent, of FDI enterprises operating in Vietnam reported losses in 2021 totaling over VND168.3 trillion ($7.1 billion), according to a recent report from the Ministry of Finance.
The total asset value of foreign enterprises in the country increased to over VND8,857 trillion ($377 billion).
During the same period, the FDI sector reported after-tax profits of nearly VND9,455 trillion ($400.6 billion), an 8.8 per cent increase year-on-year.
The sector’s net income in 2021 was reported at over VND8,567 trillion ($363 billion), a 19.3 per cent increase over the previous year.
FDI enterprises’ contribution to the State budget has continued to grow, from VND164 trillion ($6.9 billion) in 2020 to VND180 trillion ($7.62 billion) in 2021.