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$8.6 billion worth of overseas outsourcing received in 2016

Vietnam received $8.6 billion in outsourcing from overseas in 2016, according to the first investigation into outsourcing conducted by the General Statistics Office (GSO). The information was released at a press conference on the Economic Census.

According to the GSO, Vietnamese enterprises mainly received outsourcing in textiles and garments and footwear, which have seen solid growth in revenue.

While receiving $8.6 billion in outsourcing from overseas in 2016, Vietnam’s enterprises in turn provided over $8.2 million in outsourcing to overseas firms.

Sectors accounting for the highest outsourcing were textiles and garments, at $4.1 billion, accounting for nearly half of the total, followed by footwear with $2.7 billion.

Outsourcing in electronics was low, though Vietnam is attracting a number of large foreign companies in telephones and components and electronics, including Samsung, LG and Intel.

Assembled telephone outsourcing reached just $268 million, accounting for 3.1 per cent of the total, while computer and electronics received $63 million, or 0.7 per cent.

The total value of imported materials for processing and assembly in Vietnam in 2016 reached $20.2 billion, of which inputs for foreign-invested enterprises (FIEs) were valued $16.3 billion, or 80.7 per cent of the total.

Exports of processed products stood at $32.4 billion, of which $25.6 billion were by FIEs, or 79 per cent of the total.

Though Vietnam’s manufacturing industries are mostly involved in outsourcing, private enterprises accounted for only a small percentage, of 19 per cent of total import value and more than 20 per cent of export value.

Enterprises in Vietnam mainly received outsourcing from five countries and territories, such as South Korea, Taiwan, China, the US, and Japan.

Most products were exported back to the country of origin or elsewhere.