Vietnam warned of increasing dependence on foreign capital
Indexes for 2017 second quarter reflected Vietnam’s increasing dependence on foreign direct investment (FDI), said the Vietnam Institute for Economic and Policy Research (VEPR) in its recent report on the performance of the economy in the quarter.
Hanoi (VNA) – Indexes for 2017 second quarterreflected Vietnam’s increasing dependence on foreign direct investment (FDI),said the Vietnam Institute for Economic and Policy Research (VEPR) in itsrecent report on the performance of the economy in the quarter.
VEPR Director Nguyen Duc Thanh said an upward trend in theproportion of export from the FDI sector showed that the country is relyingmore on foreign capital.
In 2009, FDI shipments accounted for 32.9 percent ofVietnam’s total exports, going up to 70.2 percent in 2016 and 72.4 percent in thefirst half of 2017.
Despite a decline in the last half of 2016, FDI flow bouncedback significantly in the first six months of this year.
Labour force in FDI industrial businesses maintained highgrowth rate, while the figure for the private sector plunged between Januaryand June this year. This means the domestic economic sector is losing out onthe race against its foreign peer.
VEPR also noted the positive recovery of the economy in thesecond quarter as it grew 6.17 percent, compared to 5.78 percent recorded inthe same period last year. The growth was said to be driven by soundperformance of services and agriculture.
In the first half of 2017, the economic growth hit 5.73percent, representing a slight year-on-year increase.
During the period, imports surged. Trade deficit with theRepublic of Korea (RoK) stood at 15.9 billion USD, surpassing14.1 billion USDrecorded with China.
Vietnam bought commodities from the RoK for 22.5 billionUSD, up 51.2 percent year on year, while the figures for China were 27.1 billion USD and 16.8 percent.-VNA
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Seminar announces report (Source: VNA) 
