Foreign capital injected in wood industry down 36% in 2020
Vietnam’s wood industry secured 63 new foreign direct investment (FDI) projects worth US$372.68 million in 2020, down 36% and 49% on-year, respectively.
According to a research by a number of organisations, including the non-profit organisation Forest Trends and the Vietnam Timber and Forest Product Association (VIFOREST), these foreign projects came from 14 countries and territories such as China and the Republic of Korea.
Wood processing drew most of the foreign investments, with US$274.81 million in 41 projects.
Meanwhile, a total of US$193.64 million were added to existing foreign-funded projects, decreasing 3% on-year.
Regarding export, FDI enterprises continued to show their superiority compared to domestic ones, with 653 firms or 18% of the industry’s total exporters. They posted a turnover of US$6 billion, accounting for 51% of the industry’s total. Meanwhile, 2,676 domestic companies recorded just US$5.9 billion in export value.
According to To Xuan Phuc from the Forest Trends, the superiority can be the results of differences in production and capital scale, as well as technology and management.