The latest report on the performance of foreign-invested enterprises (FIEs) released by the ministry in February reveals that a growing number of FIEs have reported accumulated savings and equity losses in recent years.

Among 28,918 FIEs with financial statements collected by the ministry in 2023, 16,292 posted losses.

In addition, the number of FIEs recording accumulated losses reached over 18,100, up 15 per cent on-year.

The total losses of FIEs reached $8.52 billion in 2023, an on-year increase of 32 per cent.

There was also a sharp rise in those with equity losses, totalling 5,091 enterprises.

In terms of revenue, the ministry said that their revenue reached VND9.4 quadrillion ($368.5 billion), a drop of over VND426.9 trillion ($16.7 billion).

Five localities where FIEs posted the highest business revenues were Ho Chi Minh City ($54.8 billion), Bac Ninh ($47 billion), Dong Nai ($29.4 billion), Binh Duong ($28.7 billion), and Haiphong ($27.2 billion).

Their pre-tax profits stood at VND411.7 trillion ($16.14 billion) in 2023, a decline of VND68.3 trillion ($2.7 billion) against 2022.

Meanwhile, their after-tax profits reached VND377 trillion ($14.8 billion), a decrease of VND63 trillion ($2.5 billion).

The ministry noted that total assets of FIEs reporting in 2023 reached nearly VND9.96 quadrillion ($390.5 billion), an increase of 6.8 per cent.

Commenting on the effectiveness of FDI, the ministry said that the number of FIEs reporting losses rose significantly in terms of quantity and capital value.

Many FIEs have reported losses, but still expanded their investments, production, and business activities. Despite this, many FIEs' contributions to the state budget remained low.