63.3% of FDI enterprises use goods and services provided by domestic enterprises

According to the business survey results in the Provincial Competitiveness Index (PCI) 2022 report, one of the difficulties of Vietnamese enterprises is finding business cooperation partners, which has improved more.

Also in the PCI 2022 report, as noted by foreign invested enterprises (FDI), only 52.4% of FDI enterprises will use input goods and services provided by Vietnamese private enterprises in 2021, this figure has increased to 63.3% in 2022.

Moreover, only 30.5% of FDI enterprises, will import goods and services from the parent country in 2022 – the lowest level from the peak of 58.7% in 2016. The percentage of FDI enterprises switching to third-country suppliers fell from 22.6% in 2021 to 16% in 2022.

This result shows the increasingly important role of domestic enterprises as suppliers of input materials for FDI enterprises, especially in the fields of electronics and logistics. According to businesses, this may be the result of the implementation of many Free Trade Agreements (FTAs), especially EVFTA and CPTPP, and the wave of investment shifting from China to neighboring countries like Vietnam.

Moreover, in the past time, domestic enterprises have also made efforts to innovate production and apply technology to produce high-quality products, thereby taking advantage of the opportunity to join the global supply chain.

However, difficulties are still there when the outside world is still very unstable, the market demand is reduced, the number of orders is reduced, input costs are high. Therefore, maintaining the position, not to mention increasing the percentage of supply for FDI enterprises will face many challenges, requiring domestic enterprises to have long-term plans, constantly innovate and improve the competitiveness. At the same time, businesses also always need support in terms of solving problems, financial and procedural solutions…

The good news is that in the newly issued public announcement, Prime Minister Pham Minh Chinh has requested agencies to handle and remove difficulties and obstacles in accessing capital, business conditions, liquidity… as well as strengthen inspection and rectification of shortcomings, inadequacies and negatives in order to soon promote production business, import and export, business support.


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