Facebook @Dethivaonganhang www facebook com/dethivaonganhang www ThiNganHang com S Á C H – T À I L I Ệ U T H I T U Y Ể N Trang 1 GRADUATION THESIS Major International Business Economics DETERMINANTS O[.]
Facebook:@Dethivaonganhang www.facebook.com/dethivaonganhang GRADUATION THESIS Major: International Business Economics DETERMINANTS OF FOREIGN DIRECT INVESTMENT FROM JAPAN INTO SOUTH EAST ASIAN COUNTRIES AND RECOMMENDATIONS FOR VIETNAM www.ThiNganHang.com S Á C H – T À I L I Ệ U T H I T U Y Ể N Trang Facebook:@Dethivaonganhang www.facebook.com/dethivaonganhang TABLE OF CONTENTS ABBREVIATIONS LIST OF FIGURES AND TABLES INTRODUCTION CHAPTER 1: OVERVIEW OF FOREIGN DIRECT INVESTMENT AND JAPAN FOREIGN DIRECT INVESTMENT OUTFLOWS 1.1 Overview of Foreign Direct Investment 1.1.1 Concepts 1.1.2 Characteristics 1.1.3 Classification 1.1.4 Determinants of FDI 10 1.1.5 Role of FDI towards home and host countries 16 1.2 Overview of Japan Foreign Direct Investment Outflows 20 1.2.1 Total value and number of projects of Japan outward FDI 20 1.2.2 Japan FDI outflows by region 23 CHAPTER 2: DETERMINANTS OF JAPAN OUTWARD FOREIGN DIRECT INVESTMENT TO SOUTH EAST ASIAN COUNTRIES 31 2.1 Overview of Japan FDI outflows to South East Asian countries 31 2.1.1 Japan FDI outflows to the whole South East Asian countries as a unit 31 2.1.2 Japan FDI outflows to individual South East Asian countries 36 2.2 Literature review of empirical research about determinants of outward foreign direct investment 43 2.3 Quantitative analysis about determinants of Japanese outward FDI to South East Asian countries 48 2.3.1 Methodology and model specification 48 2.3.2 Data and variable description 49 2.3.3 Result analysis 54 CHAPTER 3: RECOMMENDATIONS TO VIETNAM ON ATTRACTING FOREIGN DIRECT INVESTMENT FROM JAPAN 60 3.1 Situation of attracting Japan outward FDI to Vietnam 60 www.ThiNganHang.com S Á C H – T À I L I Ệ U T H I T U Y Ể N Trang Facebook:@Dethivaonganhang www.facebook.com/dethivaonganhang 3.1.1 Total value of Japan FDI to Vietnam 60 3.1.2 Japan outward FDI to Vietnam by sector 61 3.2 Governmental directions and targets to boost Japan FDI 62 3.3 Recommendations for Vietnam to attract Japan outward FDI 63 3.3.1 Enhancing national economic growth 63 3.3.2 Improving the quantity and quality of human capital 65 3.3.3 Upgrading quality of infrastructure 67 3.3.4 Boosting exchange rate policy 69 3.3.5 Boosting trade openness by conducting promotion schemes 69 CONCLUSION 72 REFERENCES 74 ANNEX 76 www.ThiNganHang.com S Á C H – T À I L I Ệ U T H I T U Y Ể N Trang Facebook:@Dethivaonganhang www.facebook.com/dethivaonganhang ABBREVIATIONS AJCEP ASEAN-Japan Comprehensive Economic Partnership ASEAN Association of Southeast Asian Nations BOP Balance of Payment EU European Union FDI Foreign Direct Investment FTA Free Trade Agreement GDP Gross Domestic Product GSO General Statistics Office IMF International Monetary Fund JPY Japanese Yen JVEPA Japan-Vietnam Economic Partnership Agreement LCU Local Currency Unit M&A Merge and Acquisition MNE Multinational Enterprise OECD Organization for Economic Co-operation and Development OFDI Outward Foreign Direct Investment PPP Public Private Partner SEA Southeast Asian TNC Transnational Corporation UNCTAD United Nations Conference on Trade and Development UK United Kingdom US United States WTO World Trade Organization www.ThiNganHang.com S Á C H – T À I L I Ệ U T H I T U Y Ể N Trang Facebook:@Dethivaonganhang www.facebook.com/dethivaonganhang LIST OF FIGURES AND TABLES Figures Title Page Figure 1.1 US, Japan, France, United Kingdom, Netherlands and German of 21 outward FDI flows evolution (1990-2012) Figure 1.2 Number of projects of Japan outward FDI (1990 - 2004) 22 Figure 1.3 Number of projects of Japan outward FDI (2005-2013) 23 Figure 1.4 Japan outward FDI regional distribution (1990-2010) 24 Figure 1.5 Japan outward FDI to North America (2000-2014) 25 Figure 1.6 Japan outward FDI to Latin America (2000-2014) 26 Figure 1.7 Japan outward FDI to Europe (2000-2014) 27 Figure 1.8 Japan outward FDI to Asia (2000-2014) 28 Figure 1.9 Japan outward Manufacturing FDI (2005-2014) 29 Figure 1.10 Japan outward Non-manufacturing FDI (2005-2014) 30 Figure 2.1 Value of Japan outward FDI in South East Asian countries (1995- 32 2013) Figure 2.2 Japan's rate of return on outward FDI by region/country (2001- 33 2011) Figure 2.3 Japan FDI in Asia by region/country 35 Figure 2.4 Japan's Services FDI in South East Asian countries by sub-sector 36 (2005-2010) Figure 2.5 Japan outward FDI to Vietnam, Thailand and Singapore (1995- 37 2013) Figure 2.6 Japan outward FDI to Malaysia, Philippines and Indonesia (1995- 39 2013) Figure 2.7 Japan's manufacturing FDI in South East Asia by country (2005- 40 2010) Figure 2.8 Japan's services FDI in South East Asia by country (2005-2010) 41 Figure 2.9 Japan FDI in South East Asia's Transport sector by country (2005- 42 2010) Figure 2.10 Japan 's Finance and Insurance FDI in South East Asia by country 43 (2005-2010) www.ThiNganHang.com S Á C H – T À I L I Ệ U T H I T U Y Ể N Trang