FDI enterprises: Investment in Vietnam at Risk

Many businesses hire new workers; 65% of enterprises that invest in Vietnam have fewer risks ... are some of the results of investigations of foreign investment enterprises (DN FDI) has been representing the International Development Agency in Vietnam, the United States butter.

Presented findings of FDI enterprises, said Michael A. Trueblood, Director of Development and Administration Department of State, United States Agency for International Development in Vietnam (USAID) said, this is the 6th year group research included foreign enterprises in Vietnam to survey.

In 2015, the team has collected the opinions of 1,584 FDI enterprises from 43 different countries, operating in 14 provinces and cities of Vietnam (DN-density areas where the highest concentration of FDI).

Accordingly, 11% of companies said that increased investment activity and 62% of enterprises to recruit new workers. The number of jobs under investigation recorded the highest increase in the last 5 years.

Optimism about plans to expand production and business activities in the coming period of rapid increase in DN. Last year, nearly half of the companies in the sample that intend to increase the scale of operations.

The report also noted the emergence of these changes as more and more FDI enterprises sign contracts with private companies in the country in the past 2 years.

Among foreign investors are considering investing country, 83% choose Vietnam instead of choosing other countries.

When compared with other countries are considering investing, Vietnam continues to be rated well in areas such as: lower tax rate, the risk of low asset recovery, a more stable policy ...

The FDI enterprises concerned issues

There are two main types of risk that FDI enterprises were worried concern changes in the international financial system or in the water. Although since 2010, policy makers Vietnam has implemented many measures to minimize these risks.

Followed by risk provisions due to changes in regulations make their business profits diminished.

About 70% of the number of FDI enterprises that have 5% of funds spent on the time of year to solve the administrative procedure.

In 2015, only 29% said FDI enterprises to access information easily; 27% to reach but still difficult; the rest said no access.

Notably, the number of FDI enterprises TPP supporters not as high as domestic enterprises. Specifically, the level of support TPP domestic enterprises is 73%; FDI enterprises from the Member States and the TPP is 67% FDI enterprises outside the TPP is 65%.