Đề án môn học topic foreign direct investment activities in nghean 2017 2022

BỘ GIÁO DỤC & ĐÀO TẠO TRƯỜNG ĐẠI HỌC KINH TẾ QUỐC DÂN  ĐỀ ÁN MÔN HỌC TOPIC: FOREIGN DIRECT INVESTMENT ACTIVITIES IN NGHE AN 2017-2022 Instructors Student's name : Dr Luong Huong Giang : Tran Thi Bich Ngoc Student code Specialized class : 11202885 : Investment 62 CLC HANOI - 2023 i ACKNOWLEDGEMENTS Following a period of research, students completed the project with the topic ” FOREIGN DIRECT INVESTMENT ACTIVITIES IN NGHE AN” Students would like to express their sincere gratitude to their project guide Dr Luong Huong Giang has enthusiastically helped and guided her throughout the process of implementing this project I wish her good health, happiness and success in her noble teaching career Thank you very much! Tran Thi Bich Ngoc ii TABLE OF CONTENTS ACKNOWLEDGEMENTS i TABLE OF CONTENTS ii LIST OF TABLES v LIST OF FIGURES vi INTRODUCTION CHAPTER 1: THEORETICAL BASIS ON FOREIGN DIRECT INVESTMENT AND FOREIGN DIRECT INVESTMENT ACTIVITIES IN NGHE AN 1.1 The concept of foreign direct investment 1.1.1 The concept of Foreign Direct Investment (FDI) 1.1.2 The concept of attracting foreign direct investment .3 1.2 Characteristics of foreign direct investment 1.2.1 Target .3 1.2.2 Capital 1.2.3 Profit sharing ratio 1.2.4 Right of Control .3 1.2.5 Engineering and technology 1.3 Role of foreign direct investment and foreign direct investment 1.3.1 The Role of FDI 1.3.2 The role of attracting foreign direct investment 1.4 Form of foreign direct investment 1.4.1 Segmentation by Nature of investment 1.4.2 Divide by nature of capital flow .8 1.4.3 Segmentation by investor's motivation 1.4.4 Venture business .9 1.4.5 Enterprises with 100% foreign capital 1.4.6 Business Cooperation Contract .9 1.5.Criteria to evaluate the results of FDI attraction in the locality 1.5.1 Assessment of attracting foreign direct investment (FDI) .9 iii 1.5.2 Criteria for evaluating the use of foreign direct investment (FDI) 11 1.6 Factors affecting local foreign direct investment .14 1.6.1 Group of external factors 14 1.6.2 The group of internal elements .15 1.7 Experience in attracting FDI of some localities and lessons for Nghe An province 16 1.7.1 Experience in attracting FDI of some localities in the country .16 1.7.2 Lessons learned for Nghe An province 20 CHAPTER 2: SITUATION OF ACTIVITIES ATTENTION FOREIGN DIRECT INVESTMENT IN NGHE AN 2017-2022 24 2.1 Characteristics of natural conditions - Socio-economic impact on attracting foreign direct investment in Nghe An 24 2.1.1 Natural condition 24 2.1.2 Socio-economic characteristics .27 2.1.3 Infrastructure - technical characteristics .31 2.1.4 Advantage and disadvantage 34 2.2 Policy to attract foreign direct investment in Nghe An period 2017-2022 36 2.2.1 Legal documents to attract FDI .36 2.2.2 Financial Policy .37 2.2.3 Labor policy 39 2.2.4 Market Policy and product consumption 40 2.2.5 Technology Policy 41 2.3 Actual situation of foreign direct investment attraction activities in Nghe An in the period 2017-2022 41 2.3.1 Project number 42 2.3.2 Size and structure of FDI attraction by industry, investment field 42 2.3.3 Size and structure of FDI attraction by investment location: 44 2.3.5 Size and structure of FDI attraction by investment partner 46 2.4 General assessment of foreign direct investment attraction in nghean 2017-2022 47 2.4.1 These achievements 47 2.4.2 The limitations still exist .54 2.4.3 The reason for the limited existence .55 iv CHAPTER 3: SOLUTIONS TO ENHANCE THE POSSIBILITY OF ATTRACTING FOREIGN DIRECT INVESTMENT IN NGHE AN 57 3.1 Opportunities, challenges and orientations to attract foreign investment in Nghe An province 57 3.1.1 World economic situation .57 3.1.2 Trends of FDI inflows globally .57 3.1.3 Orientation to attract FDI in Nghe An province 58 3.2 Advanced solutions to attract foreign direct investment in Nghe An 64 3.2.1 Improve the investment environment 64 3.2.2 Perfecting institutions, policies and planning implementation 65 3.2.3 Improve infrastructure 65 3.2.4 Improve the quality of human resources .66 3.2.5 Solutions for businesses and organizations 67 3.2.6 Enhance technology transfer ability 67 3.2.7 Strengthening international cooperation and promoting Nghe An's image to investors 67 CONCLUSION 69 REFERENCE LIST 70 v LIST OF TABLES Table 2.1 Growth rate and per capita income in Nghe An in the period 2017-2022 27 Table 2.2 Number of FDI projects in Nghe An in the period of 2017-2022 42 Table 2.3 Structure of FDI investment in Nghe An by industry, investment field in the period 2017-2022 42 Table 2.4 List of typical FDI projects by industry/field of investment in Nghe An for the period 2017-2022 .43 Table 2.5 List of typical projects by investment area in Nghe An period 2017-2022 44 Table 2.6 List of typical FDI projects by investment partner in Nghe An .47 period 2017-2022 47 Table 2.7 Realized social investment capital at current prices by investment item in the period 2017-2022 49 Table 2.8 Forecast of capital needs for investment portfolios in Nghe An in the period of 2020-2025 63 Document continues below Discover more from: International Bidding Đại học Kinh tế Quốc dân 18 documents Go to course International bidding - review questions and answer 51 International Bidding 100% (1) Vở ghi Đấu thầu 45 International Bidding 100% (1) Aeiea 2019 001-Overview 86 International Bidding None AEC Blueprint 2025r Final 48 International Bidding None Chiangmai and AMF - Lecture notes 19 International Bidding None CBA - Group - bidding document 23 International Bidding None vi LIST OF FIGURES Figure 2.4.1 Gross Regional Domestic Product (GRDP) 28 Figure 2.4.2 The proportion of investment capital by economic sectors in the period 2017-2022 50 Figure 2.4.3 PCI score index in Nghe An period 2017-2022 55 INTRODUCTION Foreign Direct Investment (FDI) has played a significant role in the economic development of Vietnam, particularly in the past few decades As one of the provinces in Central Vietnam, Nghe An has been attracting a significant amount of FDI in recent years The province's favorable location, abundant natural resources, and a relatively low-cost labor force have made it an attractive destination for foreign investors Nghe An is strategically located in the North Central Coast region of Vietnam, with a coastline and a network of transportation systems connecting the province to other economic centers in the country This location provides easy access to key ports, airports, and major cities, making it a convenient hub for logistics and transportation activities Additionally, Nghe An is known for its rich natural resources, including minerals, forests, and agricultural land, providing a strong foundation for the development of industries such as manufacturing, agriculture, and tourism In recent years, Nghe An has been actively promoting investment in various sectors, including infrastructure, energy, manufacturing, and services, through a range of policies and incentives The province has streamlined administrative procedures, established one-stop-shop centers, and improved infrastructure to create a more favorable investment environment As a result, the province has attracted a growing number of foreign investors, particularly from South Korea, Japan, and Taiwan Overall, FDI activities in Nghe An have brought many benefits to the province, including job creation, technology transfer, and infrastructure development At the same time, the province continues to face challenges, such as improving the quality of its workforce and addressing environmental concerns Nevertheless, with its favorable location, abundant natural resources, and proactive investment policies, Nghe An is poised to attract more FDI in the years to come, which is expected to drive its economic growth and development CHAPTER 1: THEORETICAL BASIS ON FOREIGN DIRECT INVESTMENT AND FOREIGN DIRECT INVESTMENT ACTIVITIES IN NGHE AN 1.1 The concept of foreign direct investment 1.1.1 The concept of Foreign Direct Investment (FDI) The issue of foreign direct investment is now receiving more attention, both at the domestic and international levels, to assist countries in formulating macroeconomic policies on foreign direct investment, thereby creating conditions to promote international trade and investment liberalization The International Monetary Fund (IMF) defined foreign direct investment in 1993 as a type of investment where the investor gains long-term benefits from a business located in a foreign country The investor aims to have significant control over the management of the enterprise and obtain actual managerial authority in the host country According to the Investment Law of Vietnam: Foreign direct investment is defined as money or foreign investment capital that foreign investors put capital in money or any property into another country to participate in activities invest and manage investment activities by this Law and other relevant laws According to the World Trade Organization (WTO): “Foreign direct investment occurs when an investor from one country (the host country) acquires an asset and controls the asset in another country (investment-receiving country)” The United Nations Conference on Trade and Development (UNCTAD) considers a Direct Investment to be an investment involving long-term relationships that reflects the long-term interests and control of a resident entity (foreign investor or foreign parent company) in an enterprise resident in an economy other than that of the foreign investor (FDI enterprise or foreign branch) From the above points of view, it can be understood that foreign direct investment is a form of foreign investors moving resources (money, technology, 58 CHAPTER 3: SOLUTIONS TO ENHANCE THE POSSIBILITY OF ATTRACTING FOREIGN DIRECT INVESTMENT IN NGHE AN 3.1 Opportunities, challenges and orientations to attract foreign investment in Nghe An province 3.1.1 World economic situation Despite the expectation of a quick recovery of the global economy after the Covid-19 pandemic, 2022 will face many challenges such as inflationary pressure and a delay in economic growth due to the impact of fluctuations The world economy, geopolitics, including political conflicts between Russia and Ukraine, China's Zero-Covid policy and the trend of monetary tightening to cope with rising inflation The Russia-Ukraine conflict is causing many consequences for the global economy, increasing the prices of essential commodities and energy, disrupting supply chains and leading to a serious energy crisis in Europe The Covid-19 pandemic continues to affect the global economy, as the epidemic control policy weakens production and consumption, reduces the export demand of countries and leads to input scarcity and increased growth inflationary In 2022, inflation and global commodity prices will increase, especially due to the conflict in Ukraine, leading to a sharp increase in global oil and commodity prices 3.1.2 Trends of FDI inflows globally - Slow growth: Total global FDI inflows during this period grew more slowly than in the previous period, especially in 2020 because of the impact of the COVID-19 pandemic - Geographic transformation: China is still the largest FDI attraction, but Southeast Asian countries are becoming increasingly important FDI attraction centers These countries include Vietnam, Indonesia, Thailand and the Philippines 59 - Prioritizing investment in sustainable business: Due to the impact of environmental and social factors, businesses are interested in sustainable business areas such as renewable energy, green infrastructure development and reducing minimizing impact on the environment - Business sectors attracting FDI: Business sectors attracting FDI such as information technology, science and technology, finance, real estate and manufacturing continue to be the areas attracting large investment flows - Direct investment and indirect investment: In addition to direct investment projects, investors are also interested in other forms of indirect investment, such as investing in venture capital funds or buying shares A portion of startups 3.1.3 Orientation to attract FDI in Nghe An province 3.1.3.1 Orientation of FDI into Nghe An in the near future a) General orientation on attracting FDI To attract influential and selective FDI, Nghe An needs to focus on project quality and assess the skills and experience of investors to ensure sustainable economic development FDI projects should be prioritized following the potential and strengths of Nghe An, by the general socio-economic development planning of the whole province and localities, ensuring sustainable development In addition, priority should be given to FDI projects that use high technology, have high added value, use a lot of labor, occupy a small area, are environmentally friendly, and use resources economically and efficiently Meanwhile, it is necessary to limit projects with outdated technology and equipment that contribute little to the budget and use large land The function of state management of FDI should be performed well, creating a synchronous and open legal corridor following the law, ensuring the interests of both foreign investors and the community It is necessary to closely and regularly supervise FDI activities to increase socio-economic efficiency The direction and administration must be unified and have a disciplined foundation in the public apparatus, creating trust and reliability for investors, especially for the head Always benefit investors and businesses to quickly remove difficulties and obstacles and create favorable conditions for investment activities 60 All administrative procedures for investment activities must be simple and compact, not increase costs and not cause much trouble for investors At the same time, it is necessary to develop investment promotion activities by strengthening propaganda and introducing investment potentials and opportunities in Nghe An to foreign investors Focusing on creating consensus among all levels of Party committees, parties, authorities and people in the project area in promoting, mobilizing and attracting investment In addition, it is necessary to ensure transparency and consistency in the direction and administration, and at the same time create trust and reliability for investors through regularly enjoying them and solving problems investment difficulties It is necessary to focus on training and capacity building for investment managers and foreign economic workers, ensuring that the organizational structure and staff are always improved in quality and skills to serve well management and investment support Investment management agencies at all levels should actively monitor and evaluate the implementation of the State's resolutions, guidelines, policies and laws on investment so that they are effective, ensuring harmony between the benefits of the province with the interests of investors in the process of sustainable socioeconomic development in the area b) Specific orientation on attracting FDI  Attracting FDI by industry/sector -Manufacturing industry: Nghe An has the potential to develop manufacturing industries such as the food processing industry, wood manufacturing and processing industry, textile industry, electronics industry These industries all have competitive advantages and potential for future development -Real estate construction: Nghe An is shifting from a rural province to an urbanized province Therefore, there is a huge demand for real estate construction projects such as apartments, houses, commercial centers, tourist areas and other urban development projects 61 -Energy: Nghe An has the potential to develop renewable energy sources such as wind power, solar power and hydroelectricity Especially, the terrain and weather in Nghe An are very favorable for the development of wind power and solar power -Fishery: Nghe An has a long coastline, many lakes for aquaculture, with great potential for developing seafood processing and exporting industries Enterprises can invest in the construction of processing plants, modern equipment and technology to produce aquatic products of high quality and high commercial value -Transportation: Nghe An has a favorable geographical position located in the center of the North Central Coast, convenient transportation with a number of roads, railways and airports This creates favorable conditions for the development of transportation services such as freight, logistics services, tourism, etc -Tourism: Nghe An has many potential tourist attractions, including historical, landmark, cultural and ecological sites Therefore, foreign investors can invest in tourism projects such as hotels, resorts, shopping and entertainment centers to develop Nghe An's tourism industry  Attracting FDI by investment partner Developing advantageous industries: Nghe An has a lot of potential in the industrial sector, especially the agricultural product processing industries, making great contributions to the province's economy Therefore, local governments are focusing on developing dominant industries to attract foreign investors to invest Focus on large industrial projects: Nghe An has many favorable geographical locations for the development of industrial parks, especially in coastal areas, with convenient transportation The local government is promoting the construction of large industrial parks, attracting large FDI projects Improving service quality for investors: To attract foreign investors, Nghe An is focusing on improving service quality for investors Local authorities are pushing local authorities to improve the investment process and reduce administrative procedures to attract investors 62 Strengthen cooperation with investment partners: In addition to focusing on attracting new investors, Nghe An is also looking for cooperation opportunities with existing investment partners From there, the parties can jointly develop projects that benefit both parties  Attracting FDI in the form of investment Invest in areas such as electronic components, industrial parks that use a lot of labor to take advantage of the human resource advantage of Nghe An Directing FDI capital to improve infrastructure in industrial parks, using capital to protect the environment around industrial parks  Attracting FDI by investment location - Investment locations by area: Orientation of investment in Nghe An province in the near future will focus on areas with potential for economic development such as Nghi Son economic zone, Southeast economic zone and industrial parks in the province Nghi Son economic zone is located in Nghi Son, Quynh Luu and Dien Chau districts, with a favorable geographical position, near seaports and main roads, where there is great potential for economic development, especially in the industrial and tourism sectors The Southeast Economic Zone is located in Ky Son, Que Phong and Quy Hop districts, with a geographical location that has great potential for the development of agricultural and industrial sectors, especially in the field of wood production and other industries related wood products In addition, industrial parks in Nghe An province are also places to attract many investments, including Hoa Hung Industrial Park, Que Vo Industrial Park and Dong Hung Industrial Park Especially, Hoa Hung Industrial Park is the largest industrial park in Nghe An province, with great potential for the development of industries - Investment locations by administrative boundaries: Regarding administrative boundaries, districts in Nghe An province also have the potential for economic development, especially districts with geographical 63 locations near major economic centers such as Hanoi and Ho Chi Minh City Bright FDI projects focusing on districts such as Nghi Loc, Yen Thanh, Hung Nguyen and Cua Lo town, together with Vinh City will bring many benefits to Nghe An province such as focusing on the field of electronic processing, footwear, frozen food and seafood processing will contribute to diversifying Nghe An's economic production structure, enhancing production efficiency, improving product quality and enhancing the competitiveness of enterprises businesses in the area At the same time, the development of tourist and entertainment areas in Cua Lo and commercial areas in Vinh will create another source of income for the locality, promote the development of the tourism industry, and help increase trade with Vietnam countries in the region Help increase investment in infrastructure and improve the investment climate, attract large enterprises to invest and expand manufacturing activities in the region 3.1.3.2 General Objective of economic development of Nghe An Province to 2030 The general economic development goals of Nghe An Province by 2030 are defined in the Prime Minister's Decision No 1072/QD-TTg on approving the Project "Socio-economic Development of Nghe An Province until 2020 2020, vision to 2030" The main goals of Nghe An province by 2030 are: - To turn Nghe An province into an economic, cultural and educational center of the Central region -Improve the competitiveness of the local economy, economic growth reaches the average level or higher in the country -Develop strong, efficient and sustainable industries, services and agriculture -Improve people's quality of life, ensure sustainable development combined with solving social problems -Strengthening the management and efficient use of resources, protecting the environment and minimizing negative impacts on the environment -Increasing investment in socio-economic infrastructure, especially transport infrastructure, technical infrastructure and public services 64 -Build and improve management capacity, urban development and effective land management -Strengthening international cooperation, attracting resources from foreign partners and promoting international economic development of Nghe An province 3.1.3.3 Forecast of capital needs and development goals of Nghe An province's economy to 2030 Entering the stage of accelerating development, promoting the industrial economy, developing high-tech zones Resolution of the 19th Congress of Nghe An Provincial Party Committee, term 2020-2025 setting the goal of bringing Nghe An to a fast and sustainable development; firmly ensuring national defense and security; striving to 2025 Nghe An to become a good province in the Northern region, by 2030 to become a good province of the whole country For the period 2020-2025, the goals are set out as follows: - The average growth rate of gross domestic product (GRDP) in the period 2021 - 2025 will reach 9.5 - 10.5%/year - GRDP per capita in 2025 will reach about 83 million VND - Economic structure: Agriculture, forestry and fishery 19 - 20%; industry and construction 38 - 39%; services 42 - 43% - Export turnover by 2025 will reach 1.765 billion USD - Budget revenue by 2025 will reach VND 26,000 - 30,000 billion - Total investment capital of the whole society in the period of 2021 - 2025 will reach about VND 500 trillion - The province's urbanization rate by 2025 will reach 36% In short, Nghe An province is aiming for a future of sustainable and diversified economic development To achieve that development goal, key economic sectors will be promoted and need to use diverse capital sources from different sources Table 2.8 Forecast of capital needs for investment portfolios in Nghe An in the period of 2020-2025 65 Investment portfolio Total expected investment amount (Trillion) Traffic 94.473 The infrastructure of agricultural zones and clusters 103.101 Tourism 250 Agriculture and rural development 675.602 Irrigation, dikes 25,798 Resources and environment 4,758 Urban works 2.205 Sports culture 5.759 Education and training 2.031 Vocational education 1.033 Science and technology Medical 325 10.523 Labor, War Invalids and Social Affairs – the system of social support facilities 486 Information technology, broadcasting 4,650 defense security 4000 State management field Programs, technical infrastructure projects, urban and rural frameworks, burial cemeteries 2400 154500 Source: Nghe An Provincial Department of Planning and Investment 3.2 Advanced solutions to attract foreign direct investment in Nghe An 3.2.1 Improve the investment environment - Promoting development planning: Nghe An needs to have a development plan suitable to the local conditions and the country, flexible with the actual situation of each period to avoid the situation of arranging industrial zones and economic zones with dangerous conditions local provinces leading to imbalance 66 - Strengthen investment support: The State needs to create maximum conditions to encourage domestic and foreign investors to invest in infrastructure In addition, it is necessary to give the highest priority to projects that develop social infrastructure in sync with economic zones and industrial zones such as housing for workers, schools, vocational schools, medical examination and treatment establishments, trade and other services life service - Focus on developing investment support services: Nghe An needs to attach importance to developing a wide, diverse and high-quality service system such as healthcare, education, entertainment, especially customs services finance banking, commerce, investment, import and export, market research, dispute resolution to create favorable conditions for investment enterprises - Improving state management capacity on investment: To enhance investment efficiency, Nghe An needs to step up the work of improving state management capacity on investment The functional agencies need to be trained, foster professional knowledge, improve project management, monitoring and evaluation skills In addition, it is necessary to strengthen the supervision, inspection and coordination of investment projects to ensure the project implementation is on schedule, with the right quality and to ensure the legal regulations on investment 3.2.2 Perfecting institutions, policies and planning implementation - Strengthen coordination between functional agencies in the implementation and management of socio-economic development plans and plans in Nghe An Especially, it is necessary to strengthen the coordination between the Management Boards of IZs, EZs, departments, localities and investment enterprises - Provide support policies and solutions for businesses investing in IZs and EZs in Nghe An such as capital support, tax support, infrastructure support, human resource training, and especially support for financial services investment procedures and settlement of legal procedures - Researching and providing support policies for businesses operating in industrial zones and economic zones to enhance competitiveness, help businesses 67 develop sustainably and contribute to the socio-economic development Association of Nghe An Special attention should be paid to urban development plans, the development of new urban areas, infrastructure synchronization, local economic development and new economic models 3.2.3 Improve infrastructure - Focus on investment and development of existing IZs and EZs, and at the same time continue to expand the area to attract new investors It is necessary to have a detailed and complete plan for the development of industrial zones and economic zones, ensuring the progress, quality and efficiency of investment projects - Upgrade and modernize transport infrastructure, including roads, railways and airways It is necessary to accelerate the progress of approved traffic projects, and at the same time introduce preferential policies to attract investors to participate in the development of transport infrastructure - Improve the quality of electricity, water and telecommunications services in industrial zones and economic zones An investment plan is needed to upgrade and expand electricity, water and telecommunications systems, and to strengthen the monitoring and management of service quality to meet the needs of investment enterprises - Build social infrastructures such as housing for workers, schools, medical examination and treatment facilities and life services Investment should be focused on developing a system of social infrastructure in sync with industrial zones and economic zones, ensuring to meet the needs of people and investment enterprises 3.2.4 Improve the quality of human resources - Improving the quality of education: Increasing investment in education to improve the quality of education at the educational, vocational and tertiary levels Strengthen support for schools located in disadvantaged and mountainous areas, and at the same time promote the development of vocational schools to meet the needs of human resource training for industry, agriculture and service industries - Promoting innovation of training programs: Bringing training programs to international standards and suitable to the current labor market to meet 68 the human resource needs of enterprises inside and outside the province Promote schools and training institutions to partner with businesses to help students gain access to technology and work practices - Strengthen foreign language training: Improve the foreign language skills of employees to increase competitiveness in the labor market and attract investment from foreign enterprises Improve the quality of foreign language teaching and learning in schools as well as invest in high-quality foreign language training centers - Formulate and develop policies to support employees: Create favorable conditions for employees to participate in training, improve professional qualifications and skills Strengthen employment support policies for young workers, women and ethnic minorities 3.2.5 Solutions for businesses and organizations - Financial Aid: Provides financial assistance programs, especially for small and medium-sized businesses This is an important solution to help businesses overcome financial difficulties, invest in technology, equipment and promote products - Market access support: Supporting businesses to bring products to market through e-commerce channels, exhibitions, participating in product introduction programs, and looking for business partners - Improving the business environment: Strengthening inspection, examination and supervision activities to improve the business environment, promote transparent, ethical and law-abiding business activities - Investment encouragement: Create favorable conditions for domestic and foreign investors to invest in Nghe An, while promoting the image and economic potential of the locality 3.2.6 Enhance technology transfer ability - Building an innovation ecosystem: Nghe An needs to promote the construction of an innovation ecosystem, including creating favorable conditions for researchers, scientists, businesses, investors and research institutions to be able to interact and collaborate in the development of new technological solutions 69 - Strengthen cooperation with domestic and foreign partners: Nghe An needs to create favorable conditions for domestic and foreign enterprises to cooperate and interact with each other in technology transfer At the same time, it is necessary to increase investment in the infrastructure system to create favorable conditions for technology transfer - Focus on research and development of new technology products: Nghe An needs to focus on research and development of new technology products, especially products with high applicability in industries, such as food production and processing, agriculture, tourism and service industries 3.2.7 Strengthening international cooperation and promoting Nghe An's image to investors - Promoting promotional activities: Nghe An should promote its image promotion activities to countries around the world through activities such as organizing events, exhibitions, displaying products, promoting on the Internet International media At the same time, Nghe An needs to focus on developing products and services with competitive advantages and attracting international investors - Building cooperative relationships with international partners: Nghe An should seek cooperation opportunities with international partners in areas suitable to the capacity and potential of the province At the same time, Nghe An needs to build good relationships with international partners, especially potential investors, through meetings, seminars, negotiations and signing of cooperation agreements - Improve investment management capacity: Nghe An needs to improve its investment management capacity and create favorable conditions for investors This can be achieved by simplifying investment registration procedures, improving the business environment, and ensuring security and safety for investors 70 CONCLUSION In fact, in the period 2017-2022, internal accumulation in the economy in Vietnam in general and in localities in particular needs a lot of capital for development investment Therefore, attracting capital from outside is inevitable In recent years, investment capital for socio-economic development of Nghe An province has had positive changes thanks to FDI capital Given the characteristics and actual situation, the promotion of attracting FDI in Nghe An is necessary and important to promote the economic development of the province The main task of the thesis is to analyze the issues of attracting FDI into the locality and the impact of FDI on the receiving locality The project has explained the forms of foreign investment in the locality and found that each form has its own advantages and disadvantages The choice of form depends on the advantages, goals and development orientation of that locality In addition, it is necessary to be proactive to create opportunities to use FDI capital effectively and minimize the negative side of attracting FDI In the current period, the attraction of FDI must be associated with "clean FDI" and "quality" To attract FDI, Nghe An needs to learn from the successful experiences of Asian countries and provinces and cities of Vietnam It is important to take advantage of each province's unique advantages and create opportunities to attract FDI The success in attracting FDI of localities comes from knowing how to exploit their own advantages and create an attractive, healthy and proactive investment environment Nghe An has achieved basic successes in attracting FDI, contributing to increasing revenue for the state budget, promoting exports and restructuring the economy However, there are still limitations such as the low amount of registered and implemented capital, the imbalance in attraction, the failure to exploit the available advantages and the lack of initiative in attracting FDI These limitations stem from various reasons that have reduced their attractiveness to investors In order to attract FDI into Nghe An in the coming time, the project has been based on the development trend of the world economy, the advantages and disadvantages in attracting FDI into Vietnam and the strengths and weaknesses in attracting FDI into Nghe An province to come up with solutions in the coming time 71 REFERENCE LIST Tu Quang Phuong and Pham Van Hung (2015), Investment Economics Course Hanoi: National Economics University Publishing House Ministry of Planning and Investment, Report on foreign direct investment in 2017, 2018, 2019, 2020, 2021, 2022 General Statistics Office, Statistical Yearbook 2017, 2018, 2019, 2020, 2021, 2022 Decree 118/2015/ND-CP of the Government on investment registration: Decision 1500/QD-UBND of Nghe An Provincial People's Committee on promulgating Nghe An's Action Plan 2021 with a vision to 2025 for foreign investment attraction activities Decision No 82/2018/QD-UBND of Nghe An Provincial People's Committee on promulgating the Implementation Plan of Nghe An's Action Circular No 04/2019/TT-BKHDT of the Ministry of Planning and Investment promulgating the Regulation on organization and operation of Program on reforming FDI attraction methods for the period 2017-2022 Nghe An Provincial Investment Service Center Circular No 25/2020/TT-BTNMT of the Ministry of Natural Resources and Environment promulgating Regulations on monitoring the impact of investment activities on the environment Dang Thanh Cuong (2012), "Attracting and using foreign direct investment capital by localities in the country: Experiences and lessons for Nghe An province", Asia-Pacific Economic Review, no June 2012, pp 32-35 72