Less than 40 per cent of FIEs were profitable in 2022

October 18, 2023 | 18:53

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The percentage of profitable foreign-invested enterprises (FIEs) rose a little from 37 per cent in 2021 to 38.8 per cent in 2022, according to the Ministry of Finance (MoF).

Less than 40 per cent of FIEs were profitable in 2022

Cao Anh Tuan, Deputy Minister of Finance

At Prime Minister Pham Minh Chinh's conference concerning FIEs on October 16, Cao Anh Tuan, Deputy Minister of Finance reported that there were just under 29,000 FIEs operating in 2022, representing 3.27 per cent of all businesses in Vietnam.

The Ministry of Finance (MoF) has received 92 per cent of last year's financial statements which show the total assets of FIEs were VND9,444 quadrillion ($398.5 billion), an increase of 7.9 per cent on-year, and total equity was VND4.07 quadrillion ($171.7 billion), up 11.7 per cent for the same period.

Equity investment capital rose by nearly 14 per cent on-year and undistributed accumulated profit was more than VND1 quadrillion ($43 billion), an increase of 3.8 per cent.

FIEs' reported after-tax profit of VND386.7 trillion ($16.3 billion) down a little over 2 per cent on 2021.

The total budget contributions from FIEs came in at VND237.8 trillion ($10 billion), accounting for 33.7 per cent of the total contributions of all enterprises in Vietnam. Of this, five sectors accounted for about 91 per cent of total assets of FIEs, including manufacturing at 60 per cent, banking and insurance with 10 per cent, and real estate contributing 7 per cent.

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By Nguyen Huong

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