Foreign Firms Matured, Domestic Firms Withered – Last Part: The Threat of Losing Domestic Market

Source: Tuoi Tre (Vietnamese) 

Dr Dinh Cong Khai speaks of issues that may arise regarding Foreign Direct Investment (FDI) firms operating in Vietnam. He fears that foreign firms will dominate the domestic market through extensively buying shares of other domestic firms in the same sector and selling exports through wholly owned subsidiaries in Vietnam. Generic policy regarding development of Vietnamese industries is another concern. As domestic firms compete to gain FDI from foreign firms, it is necessary for the Government to create long-term plans concentrating development on industries with competitive advantages that are suitable and efficient rather than focusing on solving short term problems.