However, foreign invested firms account for 81 per cent of the export value and domestic firms account for the remaining, according to the Việt Nam Leather, Footwear and Handbag Association (Lefaso). The association says domestic firms are constrained by capital shortage and market access, making it difficult for them to expand production and increase their competitiveness. On the other hand, FDI firms are able to build on already existing advantages of capital, experience, technological superiority and other factors. Moreover, increasing investment by FDI enterprises should be seen as an opportunity for domestic firms to learn from the former’s experiences. Domestic firms should also consider co-operating with FDI firms to get orders, Xuân said.

Source: Viet Nam News August 05, 2017 01:52 UTC