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1 INTRODUCTION mechanisms and measures for orientation, regulation, screening and effective control, linked to development objectives Sustainable economy while the objective of foreign investors is to maximize profits Necessity of the research topic In the process of opening up, integrating and attracting FDI, besides the positive effects, FDI has shown many limitations and has not reached to the targets and expectations, not fully meeting the Vietnam’ s objectives of sustainable economic development: the flow of investment from developed countries to Vietnam is restriction; FDI mainly focuses on labor-intensive industries, uses many resources, takes advantage of industrial protection policies; many projects are not high, technology transfer is mainly medium and backward; The spillover effect is unclear, not supporting the development of supporting industries; low disbursement rate; the average income of laborers is low; the demand for housing and cultural life in labor intensive areas has not been met; Many FDI enterprises have the status of transferring prices, false profits, interest actually distort the transactions in the economy and cause budget losses In recent years, there have been many FDI’s low quality projects, which pollute the environment, negatively affect the people's life in the investment area, the target of sustainable economic development of the locality and Vietnam such as Vedan Dong Nai, Tung Kuang Hai Duong, Bauxite Tay Nguyen (Nhan Co Tan Rai), Vinh Tan Binh Thuan Thermal Power Especially Formusa Ha Tinh, although only in sanitation, however, the environmental disaster in the four central provinces of Ha Tinh, Quang Binh, Quang Tri and Thua Thien Hue Estimated damage to billions of dollars, severe economic, social and environmental impact of the four localities and the lives of millions The cause of the situation of FDI is not linked to the objective of sustainable economic development primarily due to socio-economic difficulties in the process of opening up, integrating, attracting FDI, limited awareness of multidimensional impact of FDI in international economic integration , give prominence to quantity, light quality, high achievements in attracting, licensing and deploying FDI’s projects lasting many years; the unhealthy competition of many localities, breaking the planning, not ensuring the common interests and objectives of sustainable economic development In addition, there is a lack of comprehensive and synchronous master plan for this economic sector, lack of In the condition that Vietnam is a low middle-income country; To implement the roadmap for joining the AEC, the Vietnam-EU free trade agreement, the CPTPP ; The economic, financial and political situation in the region and the world is often unstable and unpredictable; the perception and evaluation criteria of the international community on the level of development of each country changes; the scarce capital and the competition of countries in the region are fierce to ensure that FDI is a part, an important resource contributing to the objective of sustainable economic development of Vietnam, to prevent and mitigate the negative impacts of sustainable economic development in the future, to set the requirements for study and evaluation of the situation of attracting, managing and contributing to this economic sector to adjust the policy accordingly For that reason, the topic: "Foreign direct investment with the objective of sustainable economic development of Vietnam" was selected for research Overview of relevant research and research gaps 2.1 Overview of foreign studies 2.1.1 Studies on the objective of sustainable economic development Studies have shown that there is a need to ensure a sustainable development of the present and the future, with appropriate and harmonious behavior in exploitation, investment, development and conservation Sustainable economic development is needed on a global, national and corporate level to ensure long-term benefits However, the selection and pursuit of sustainable economic development poses many difficulties, complexities, the need for drastic changes in the policy of the state, the hand of the whole society 2.1.2 Studies on the impact of foreign direct investment The research results favor the positive role of FDI in providing capital, creating a driving force for the recipient country However, many studies suggest that the actual capital supply of FDI is low and quite expensive In various studies, in the various cases, there are the most inexplicable conclusions about the impact of FDI on technology and output Many studies show that there is no positive spillover effect of technology, or the benefits of bringing technology into the home country is negligible, even without Increasing the output of FDI enterprises reduces the output of domestic enterprises economic development of host country Studies on FDI are less linked to the objective of sustainable economic development In contrast, studies on sustainable economic development are less associated with FDI Therefore, the dissertation is a research that contributes to fill the gap of research that attaches FDI to the objective of sustainable economic development While many studies have found a coherent causal relationship and positive role of FDI in economic growth, there are few studies that indicate that there is no significant positive FDI with economic growth and FDI influence positively to the growth of receiving countries is conditional The impact of FDI on the import / export of the recipient country depends on the target market for which the investment is directed Depending on the market segment it serves, FDI will not, or likely increase, the extent of international trade of the receiving country to a varying degree In general, FDI helps expand the trade of the recipient countries, especially export markets, because the trend of FDI is export oriented In addition to the conclusions about the positive impact of FDI on employment creation, training to improve the professional level, and improvement of the living standard of the labor force, many studies have not found or seen very limited impacts positive from FDI 2.1.3 Studies on FDI with the objective of sustainable economic development Studies show that FDI often only has positive effects in less developed countries and the early stages of industrialization; FDI itself does not really contribute positively to the objective of sustainable economic development of the receiving country In order to achieve the expectation that the foreign direct investment sector contributes positively to sustainable economic development, the receiving country must prepare and perfect the material and economic conditions , technical, as well as related policies and legislation 2.2 Overview of research in the country In Vietnam, many studies on FDI have been conducted However, there is no research focused on the relationship between FDI and the objective of sustainable economic development 2.3 Research gap So far, according to the author's understanding, no published scientific work has focused on FDI as an important resource contributing to sustainable Objectives of the study 3.1 Overall objectives Studying and evaluating the impact and relationship between FDI and the target of sustainable economic development of Vietnam Based on the research results, the dissertation proposes a policy solution to link FDI to sustainable economic development in Vietnam by 2025 with a vision to 2035 3.2 Detail objectives - Overview of domestic and international research projects on sustainable development, sustainable economic development, FDI with the objective of sustainable economic development - Systemize and clarify the theoretical issues of FDI with the goal of sustainable economic development of a country - Analyze and evaluate the status of FDI with the goal of sustainable economic development of Vietnam in 1988 - 2017 - To study the experiences of some countries on FDI with a view to sustainable economic development and lessons for Vietnam - Proposing orientations and policy solutions to link FDI to sustainable economic development of Vietnam by 2025, vision to 2035 Subjects and scope of research 4.1 Research subjects Researching FDI as an important resource contributes to achieving the goal of sustainable economic development through a number of indicators reflecting the contribution to sustainable economic development 4.2 Research scope Study the relationship and assess the impact of FDI on Vietnam's sustainable economic development goals from 1988 to 2017, in four stages from 1988 to 1990; 1991-2000; 2001-2010; 2011-2017, in a number of aspects: contribution of capital, technology, labor, revenue contribution, GDP growth, import and export, market opening, economic restructuring, Vietnamese products have competitive advantages contribution of FDI to the economy and the objective of sustainable economic development of Vietnam Study the experience of some countries on FDI with the goal of sustainable economic development and draw lessons for Vietnam Research questions - How is FDI estimated to be associated with the goal of developing the economy? - What are the criteria for assessing the contribution of FDI to the development of the economy? - How does FDI contribute to the achievement of Vietnam's sustainable economic development goals for the period 1988 - 2017? - What is the proportion of contributions and correlations between FDI and other economic sectors in the economy? - Orientations and solutions to link FDI to sustainable economic development of Vietnam by 2025 with a vision to 2035? Method and process of research 6.1 Research Methods To perform research tasks, the dissertation uses a combination of several research methods: - Method of document study: To collect and study documents and scientific works in the country and internationally related to research contents, through searching at libraries, guidance of scientists, The accounts of the scientific information pages provided by the Graduate School of Economics of the National Economics University, scientific journals, journals and the Internet to classify, compare, evaluate, clarify the research gap - Statistical methods and data collection: exploitation and use of primary data sources (exploiting data collected from 11,925 sample of FDI enterprises in 2015 by the General Statistics Office) and related secondary data to topics from the official information channels in the country and internationally such as General Statistics Office, Ministry of Planning and Investment, General Department of Customs, World Bank to analyze and compare the impact of FDI compared Domestic enterprises, among different forms of FDI enterprises, and between Vietnam's FDI and FDI of some countries in order to assess the - Descriptive statistics method to compare the situation, contribution of FDI between phases and associated with the objective of economic development over time; Comparing the contribution of FDI to the contribution of domestic investment; the level of connectivity between FDI and the rest of the economy - The method of analysis and comparison: based on the source of data to assess the status of FDI with the objective of sustainable economic development of Vietnam through analysis of the contribution of FDI; Comparing the correlation between FDI and other economic sectors and between different types of FDI enterprises through some indicators such as capital, technology, labor, budget, export and import; Comparing some indicators of FDI in Vietnam with some countries in the region at similar stages of development; Analyze some international experiences to draw lessons for Vietnam - The method of correlation and forecasting: using some statistical analysis and forecasting software such as OLS and ARIMA to test the correlation between FDI and some economic indicators and FDI forecast to 2025, such as the relationship between FDI and GDP, total investment, import and export 6.2 Research process Study overview Build a set of research indicators Analyze and evaluate the status of FDI with the objective of sustainable economic development Proposing directions and solutions to linking FDI with the objective of sustainable economic development Identify the research gap and the framework for analyzing FDI with a view to sustainable economic development Indicators for sustainable economic development and analytical frameworks for FDI with the objective of sustainable economic Determining the contribution of FDI to achieving the goals of sustainable economic development Orientations and solutions have scientific basis and conditions of implementation Step 1: Based on an overview of domestic and foreign research related theses to define the framework for FDI analysis with a view to sustainable economic development and research gaps ( ) Using OLS methodology, the model assessing the impact of FDI on GDP, domestic investment and export of Vietnam in the period 1995-2017 The result show that: consider in correlation multivariate relative, effect FDI to GDP through exports; FDI has positive correlation with GDP, domestic investment and export when considering separately correlated with each indicator; comparring with some of the proposed indicators of the dissertation indicates that although FDI has not reached the expectation of Vietnam's objective of sustainable economic development, but still plays an important role for the economy Step 2: Build the analytical framework and the set of indicators to measure the contribution of FDI to the objective of sustainable economic development Step 3: Evaluate the real situation of FDI with the objective of sustainable economic development of Vietnam over time through correlation with other economic sectors, compare with the set of indicators and experience of some countries Step 4: Analyze opportunities, challenges, issues to propose some solutions and proposals to increase the contribution of FDI to the goal of sustainable economic development New contributions of the dissertation 7.1 New contributions in term of education and theory The dissertation builds the theoretical framework for FDI with the objective of sustainable economic development and applies to the Vietnam’s condition; To summarize and study in depth the international experience comparing the current situation in Vietnam for FDI with objectives of sustainable economic development through the periods: ( ) The impact of FDI on the objective of sustainable economic development is conditional, depending on the level of economic development, availability of infrastructure, human resources - especially highly quality human resources, institution and regulatory policy instruments, effective FDI management Besides the positive effects, FDI potential risk of unsustainable for the Host Country Economic ( ) Through study experience in some countries; Actual contribution of FDI to Vietnam’s economic development objective in the period 1995-2017, the dissertation assesses through indicator system, including: contribution ratio in total investment; share of GDP; efficient use of capital; type of enterprise; quality of the transfer technology; proportion of imports and exports shows that FDI in Vietnam does not fully meet the objective of sustainable economic development ( ) The dissertation also shows that the quality of FDI in recent years has significantly improved, but has not reached the proposed sustainable level according to international experience, such as not stabilizing the major balances of the economy, maintaining and developing sustainably the factors such as capital, labor, technology, resources, increased productivity, efficiency in using resources, or increasing contribution of the TFP; transferring effectively model and structure economic, enhancing quality, competitiveness, sustainability of the products, promoting participation, penetration into the global value chain, high value added; as well as the spillover effects of FDI on the rest of the economy… 7.2 New findings and recommendations taken from the research and investigation of the doctoral dissertation The dissertation affirmed that FDI is an important part of the economy, contributing to the country’s reform and development in the period 1988-2017 However, the overall assessment in comparison with some countries, as well as the comparison between the contribution of economic sectors, FDI is not really sustainable, contributing not corresponding to potential, not meet the goal of sustainable economic development In order to ensure that FDI is linked to the goal of sustainable economic development, Vietnam should be ready for certain conditions The dissertation proposes some solutions to link FDI to Vietnam's sustainable economic development goals by 2025, vision 2035: (1) To construct and deploy as soon as possible the new generation FDI strategy; (2) To amend, supplement and perfect the system of legal documents; (3) To amend, supplement, finalize and publicize the plan with scientific and practical basis; (4) To focus on infrastructure development of special economic zones, regions and localities with comparative advantage to facilitate effective FDI; (5) Continue reforming administrative procedures , improving state management efficiency; (6) To attach importance to investment in the development of highquality human resources; (7) To renovate modes, raise the quality and efficiency of advocacy and investment promotion, and promote the role of associations and organizations providing FDI support service, select carefully high quality FDI The dissertation is a scientific basis for evaluating FDI with the objective of sustainable economic development of Vietnam and other countries with similar conditions, which is the scientific basis to help managers understand the orientation and formulate strategies, complete the policy to link FDI to Vietnam’s objective of sustainable economic development by 2025, vision to 2035 The proposed indicators are the basis for the assessment of the success of the policy and the practice of FDI with the goal of sustainable economic development in each period, poses the requirements to continue research to complete the indicators in the next study Structure of dissertation In addition to the Introduction, Conclusion, List of Abbreviations, List of Tables, Figures, Reference Lists and Annexes, the dissertation is presented in three chapters: Chapter 1: Theory of Foreign Direct Investment with the objective of Sustainable Economic Development and International Experience Chapter 2: The Situation of Foreign Direct Investment with the Vietnam’s objective of Sustainable Economic Development, 1988-2017 Chapter 3: Orientations and solutions to link foreign direct investment with the Vietnam’s objective of sustainable economic development up to 2025, vision 2035 10 CHAPTER THEORY FOR FOREIGN DIRECT INVESTMENT WITH THE OBJECTIVE OF SUSTAINABLE ECONOMIC DEVELOPMENT AND INTERNATIONAL EXPERIENCE In this chapter, the author concentrates on clarifying the theory of FDI as an important resource for achieving the objective of sustainable economic development; study international experience and propose some indicators to assess the economic sustainability of FDI 1.1 Theory of foreign direct investment 1.1.1 The concept of foreign direct investment Can be generalized, FDI is the investment of individuals, companies (mostly transnational and multinational companies) to build overseas branches and subsidiaries and to own all or a whole each part of that base This is an investment in which a foreign investor contributes a sufficient amount of capital to produce or provide services and allows them to directly participate in the management and administration of investment objects The goal is to gain higher profits through the implementation of overseas business operations 1.1.2 The causes and main forms of FDI FDI is an indispensable trend in international integration and trade and is carried out in various forms, depending on the orientation of the receiving country and the choice of the investor Some main forms of investment: joint venture enterprises; 100% foreign invested enterprises; BOT, BTO and BT contracts; Business Cooperation Contract; parent company - child 1.2 Theory of the goal of sustainable economic development 1.2.1 Economic growth and development Economic growth can be understood as the increase in the production of goods and services, or the increase in the size of the economy over a given period of time, which is often reflected in the percentage increase of the gross domestic product (GDP) after the adjustment of inflation, or the actual increase in per capita income 11 12 Economic development is the process of growing up, advancing all aspects of the economy It includes both economic growth in terms of quantity and quality, and structural integrity; Renovation of economic institutions in line with the development stage; The quality of human life is raised both physically and mentally and towards a healthy living environment accompanied by a strategy of economic development in a certain period and realized, implemented through specific programs and plans Economic growth is the basis, the basic condition for economic development In contrast, economic development encompasses both economic progress and social progress, creating a solid socio-economic base to achieve future economic growth 1.2.2 Sustainable development and sustainable economic development Sustainable development is a way of socio-economic development in order to better address the relationship between economic growth, social issues and environmental protection with the aim of better meeting the needs of the present generation and not hinders the fulfillment of the needs of future generations In other words, it is a harmonious development in terms of economy, culture, society and the environment in all generations in order to continuously improve the quality of human life Sustainable economic development is a state of development of an economy in the direction of reducing the value of low added value to high added value in accordance with natural and social conditions of the country, towards the structure of information economy, knowledge economy structure; To exploit effectively and bring into full play the comparative advantages and competitive advantages of the domains and professions where the country has advantages Sustainable economic development also ensures that the economy does not fall into foreign debt and that the balance of payments is not overdeficit causing macro-economic instability Sustainable economic development in the context of international integration is also reflected in the competitiveness of the economy in general as well as each business, each product in particular 1.2.3 The goal of sustainable economic development The goal of sustainable economic development is a sustainable goal that needs to be achieved for economic development over a given period of time, usually five years, ten years, sometimes even 15 years, or even 20 years, even longer; is a set of indicators related to the future economic development of an economic entity The goal of sustainable economic development is often 1.3 Contribution of FDI to sustainable economic growth FDI contributes to the goal of sustainable economic development that foreign investors deploy and operate investment projects that meet the requirements of the objective of sustainable economic development of the recipient country voluntarily or as required by the policy instruments of the receiving country The review and assessment of FDI attached to the objective of sustainable economic development can be made through the impact assessment, the contribution of FDI to the achievement of objectives, stabilization of major balances of the economy; To ensure the sustainable development of such factors as capital, labor, technology, natural resources ; increased productivity, efficient use of resources, or increased contribution of productivity to aggregate factors; the transformation of the model, the economic structure in an efficient manner, the improvement of the quality, competitiveness, sustainability of the product, the promotion of participation, penetration into the global value chain, high value added; as well as the spillover effects of FDI on the rest of the economy 1.4 Some criteria assess the impact of FDI on the target of sustainable economic development of receiving countries 1.4.1 Content: Sustainable investment partner; technological sustainability; Sustainable in form of investment; Sustainable in the field, industry, investment products; Sustainability in regional, local and product linkages; Sustainable in some key indicators 1.4.2 Some specific indicators: Through the study of some countries' experiences and FDI practices in Vietnam from 1988 to 2016, a number of reference indicators assessing the linking of FDI with the objective of sustainable economic development are discussed Summary: KFDI