FIA assesses the pros of multinational corporations
(VOV) - The foreign capital inflows provided by multinational corporations (MNCs) have been immensely positive for the nation’s economic development, according to a representative from the Foreign Investment Agency (FIA).
Particularly the inflows into infrastructure and advanced technologies have helped to transform the way Vietnam does business by improving the quality of products, labour productivity and profits, which has driven the expansion of exports and economic growth.
This in turn has sped up the movement to a more modern and industrialised society, the representative said.
In addition, (MNCs) have created good paying jobs and have provided access to advanced education and training for labourers and employees, improving their standard of living.
Last but not least, domestic businesses directly benefit from the the significant investments in research and development (R&D) of MNCs. Only large firms with significant resources can afford R&D, which most often directly benefits suppliers of raw materials and components.
In other words, MNCs in Vietnam have spawned the development of supply chains providing domestic small and medium sized businesses with ground floor opportunities to get a footing and actively participate in the global marketplace.
Overall, they contribute directly to enhancing the nation’s competitive edge and are good for the country, the FIA representative said.