FDI enterprises account for more than 50% of wood export value

(VAN)- Wood and wood products exports in 2020 reached a record of more than US$ 12 billion, of which, FDI enterprises accounted for more than 50%.

FDI enterprises account for more than 50% of the wood and wood products exports value. Photo: TL. — FDI enterprises account for more than 50% of the wood and wood products exports value. Photo: *TL.*

According to the Association of Vietnam Timber and Forest Products, in 2020, there were 653 FDI enterprises in the wood industry participating in exporting, accounting for 18% of the total number of exporting enterprises. The export turnover of FDI enterprises reached over US$ 6 billion, equivalent to 51% of the total export turnover of the industry.

Meanwhile, domestic enterprises accounted for 82% of the wood exporting enterprises, but the export turnover only accounted for 49% of the total export turnover.

In terms of turnover growth in wood exports, FDI enterprises had a growth rate of over 20% compared to 2019, while it was only a half among domestic enterprises.

In 2020, the wood industry received 63 FDI projects with a total registered capital of US$ 372.7 million. In the same year, the number of projects to raise capital was 52 times (capital increased by US$ 193.6 million) and the number of capital contribution to shares purchase reached 122 times (US$ 244.8 million). In general, FDI investment in the industry decreased compared to 2019, mainly due to Covid-19.

FDI projects in the wood industry in the last year were small-scale, about US$ 6 million/project. China was on top the list in terms of the number of projects (23) however these projects were in very small scale, equivalent to one third of the average capital of an FDI project.

Author: Son Trang

Translated by Meagan Phan