Foreign direct investment (FDI) is the silver lining in Vietnam’s economy amid the impact of the pandemic on the national and global economy, according to a report published on Tuesday.

The Vietnam Association of Foreign Invested Enterprises (VAFIE) unveiled the report on Vietnam’s foreign investment in 2021, in collaboration with audit services company KPMG Vietnam and a number of economists, said VAFIE Vice President Nguyen Anh Tuan.

He added that the findings will be used by policy-making agencies, research and training institutions, FDI firms and international investors, reports Vietnam Plus.

However, despite foreign direct investment being the silver lining for Vietnam’s economy, VAFIE President Nguyen Mai outlined issues surrounding the appeal and use of FDI, including the modest amount of high-tech projects from the U.S. and Europe. In addition, contributions of many FDI enterprises to the state budget didn’t match their investment scale and incentives they are eligible for.

The structure of foreign investment in regard to regions is unbalanced, the report adds, with insufficient established research and development centres by businesses.

VAFIE added that the foreign investment sector of the economy has continually progressed since the law on foreign investment was passed in 1987. FDI has made substantial contributions to Vietnam’s economic growth, accelerating the country’s international economic integration and improving its global standing.

The FDI sector makes up around 25% of total social investment, 55% of total industrial production value in the country and over 70% of Vietnam’s export revenue. Moreover, it has generated 4.6 million jobs, amounting to over 7% of the country’s workforce, and indirectly created employment for millions of others.