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Friday, May 20, 2022

Over half of FDI firms in Vietnam report losses

The Saigon Times

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HCMC – Over 14,100 foreign direct investment (FDI) firms, or 56% of the total in Vietnam, reported losses worth more than VND151 trillion in 2020, according to the Finance Ministry’s recent report sent to the prime minister.

Several FDI firms active in the telecommunications and software development fields that were said to gain benefits during the Covid pandemic also reportedly suffered losses. However, in 2020, FDI firms in this group also reported poor performance.

Specifically, this group earned nearly VND44 trillion in revenue, with Airpay JSC and Shopee Company accounting for VND4.5 trillion and VND2.3 trillion of the total value, respectively.

The two FDI firms also saw their revenue surge in 2020, contributing 58% to the group’s revenue growth.

Despite their rising revenue and investment expansion, Shopee and Airpay still suffered losses, leading to a decrease in their contribution to the State budget.

Shopee was hit by capital losses as its accumulated loss soared 31% against 2019, said the ministry.

As of late 2020, more than 16,160 FDI firms, or 64% of the total, reported accumulated losses worth VND623.3 trillion.

However, the total assets of FDI firms which suffered losses in 2020 amounted to some VND2,910 trillion, up 8.1% against 2019.

The number of FDI firms suffering a capital loss in 2020 was 4,250, up 22.7% against the previous year.

Statistics from the State Budget Department under the ministry indicated that domestic revenue from foreign-invested companies in 2020 reached over VND206 trillion, down VND6.1 trillion against 2019, the first drop since 2016.

Meanwhile, 10,125 companies of the total of 25,170 FDI firms active in the country posted profits in 2020, the local media reported, citing the ministry’s report.

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