LIST OF FIGURES Figure 1 Realized foreign direct investment capital years 2018-2022 30 Figure 2 Nations and territories have invested the largest FDI in Vietnam 31 Figure 3 Realized fore
INTRODUCTION
Reason for choosing the topic
Foreign Direct Investment (FDI) is a crucial catalyst for economic growth and development in a globalized world, providing essential capital, technological advancements, job creation, and enhanced competitiveness In Vietnam, a country undergoing significant economic transformation and gaining prominence in Southeast Asia, FDI has been instrumental in its development This dissertation examines the factors influencing FDI attraction in Vietnam, particularly from 2018 to 2023, a period marked by significant economic changes that have made Vietnam an increasingly attractive destination for foreign investors As Vietnam transitions from an agrarian economy to a modern industrialized nation, understanding the dynamics of FDI attraction is more important than ever.
Rationale for Choosing the Topic:
This research topic is crucial due to the significant role of Foreign Direct Investment (FDI) in Vietnam's economy from 2018 to 2023 This period highlights Vietnam's impressive economic resilience and growth, establishing it as one of Southeast Asia's fastest-growing economies Furthermore, it reflects Vietnam's proactive approach to attracting foreign investments through policy reforms and infrastructure development Additionally, global economic shifts, including changes in trade dynamics and geopolitical tensions, have directly influenced FDI trends in the region.
This study focuses on the factors influencing the attraction of foreign direct investment (FDI) in Vietnam from 2018 to 2023, particularly in the context of economic fluctuations By analyzing these elements, the research aims to evaluate how varying economic conditions impact the flow of FDI into the country.
Objectives of the research and research question
To Identify Key Factors: To identify and analyze the key factors that have influenced
Foreign Direct Investment inflows in Vietnam during the period of 2018-2023, encompassing macroeconomic, regulatory, infrastructural, human capital, and geopolitical dimensions
This article aims to assess the current status of Foreign Direct Investment (FDI) in Vietnam, focusing on trends, sources of investment, and preferred sectors during the specified period It also examines the transformative effects of significant FDI projects on the country's economy.
This article aims to offer evidence-based policy recommendations to policymakers, business stakeholders, and international organizations The focus is on strategies that can enhance Vietnam's foreign direct investment (FDI) attractiveness while promoting sustainable economic growth.
This research aims to identify and analyze the key determinants influencing Foreign Direct Investment (FDI) inflows in Vietnam from 2018 to 2023 The study encompasses a broad range of factors, including macroeconomic conditions, regulatory frameworks, infrastructure development, human capital, political stability, and market potential.
The primary goal is to evaluate the current state of Foreign Direct Investment (FDI) in Vietnam within a defined timeframe This involves analyzing FDI trends, identifying key sources of investment, highlighting favored sectors, and assessing the transformative effects of major FDI projects.
The primary objective is to deliver evidence-based policy recommendations to key stakeholders, including policymakers, businesses, and international organizations These recommendations are designed to guide strategic decisions and actions that will improve Vietnam's attractiveness for foreign direct investment (FDI) and support sustainable economic growth.
First, what factors affect FDI and how strong and weak are each component?
Second, what is the solution for Vietnam to better attract FDI in the future?
Spatial scope: research paper on FDI flows throughout Vietnam
Time range: extracted macroeconomic and FDI data from 2018 to 2023
To effectively attract Foreign Direct Investment (FDI) in Vietnam, it is essential to conduct a thorough literature review that encompasses existing theories and research This involves analyzing academic papers, government reports, industry publications, and documents from international organizations such as the World Bank and UNCTAD to establish a solid theoretical framework.
Content Analysis: Analyze regulatory documents, policy changes, and government reports related to FDI policies and economic indicators
Thematic Analysis: Use thematic analysis to categorize and interpret qualitative data from interviews and case studies Identify recurring themes and patterns related to FDI attraction
Utilize secondary data sources, including government statistics (e.g., FDI inflow data, economic indicators), to assess trends and changes in FDI in Vietnam during the study period
Evaluate the effectiveness of policies and reforms introduced by the Vietnamese government to attract FDI Assess their impact on FDI inflows and economic development
Compare Vietnam's FDI attractiveness with that of neighboring countries in Southeast Asia, such as Thailand, Malaysia, and Indonesia Highlight differences and similarities in FDI policies and outcomes
The research will also consider empirical evidence and case studies from other countries to provide valuable insights and lessons for Vietnam's FDI attraction efforts
The article focuses on researching the flow of foreign direct investment in Vietnam
The study is divided into four chapters:
Chapter 2: Literature review and research framework
Chapter 3: Factors affecting Vietnam's FDI inflow in the period of 2018 – 2023
LITERATURE REVIEW AND RESEARCH FRAMEWORK
Main concept related to Foreign direct investment
2.1.1 Definition and Characteristics of foreign direct investment
Foreign Direct Investment (FDI) is a focal point of research for experts and organizations globally, recognized as a key resource for economic growth and a significant influence on various aspects of the economy and social life In both Vietnam and worldwide, studies on FDI are abundant, encompassing diverse topics such as the origins of FDI, factors influencing FDI flows, and the direct and indirect effects of FDI on the broader economy and society Additionally, research often evaluates the effectiveness of FDI attraction in different countries.
According to the United Nations Conference on Trade and Development (UNCTAD,
Foreign Direct Investment (FDI) refers to investments aimed at acquiring long-term interests in enterprises located outside the investor's home economy The primary goal of FDI is to gain significant influence over the management of the invested enterprise.
The International Monetary Fund (IMF) defines foreign direct investment (FDI) as capital invested to achieve long-term benefits in a business operating in a different economy from that of the investor This investment aims to secure a significant influence in the management of the enterprise, highlighting the importance of long-term commitment and foreign ownership in the investment process.
Foreign Direct Investment (FDI), as defined by the World Bank, refers to the net investment flow into a country, enabling investors to obtain long-term management rights, typically by holding at least 10% of the common shares in an operating enterprise within another economy.
Foreign Direct Investment (FDI) refers to a significant form of international investment where investors from one economy inject substantial capital or assets into another economy This investment allows them to own, operate, and control the assets or businesses in which they have invested, ultimately aiming for profit or other economic advantages.
Foreign Direct Investment (FDI) occurs when a foreign company invests in building and managing a factory, while indirect investment involves purchasing stocks or bonds of domestic companies Earnings from foreign investments, such as interest, dividends, and profits, can be repatriated FDI allows investors to be both owners and users of their capital, granting them autonomy in establishing and managing projects This form of private capital investment holds investors accountable for business outcomes, risks, and profits, making FDI a highly feasible and effective investment strategy.
Characteristics of Foreign Direct Investment
Foreign Direct Investment (FDI) encompasses not only the initial investment known as chartered or legal capital but also includes loans sourced from investors Typically, these loans are obtained from parent companies located abroad and are fully contributed by the local companies in compliance with regional regulations to facilitate business expansion.
Foreign Direct Investment (FDI) capital represents a direct investment from foreign investors, originating entirely from abroad without relying on borrowed funds This unique aspect alleviates debt pressure on the host country, making FDI a significant advantage over other foreign investment forms.
Foreign investors have the autonomy to select their investment field, form, scale, and technology, allowing for efficient and politically unrestricted investment opportunities This approach not only minimizes the economic burden on the host country but also facilitates technology transfer, enhancing the overall productivity and innovation within the local market Ultimately, investors assume responsibility for profit and loss, ensuring a commitment to sustainable business practices.
Next, FDI investors are the owners of capital, and a part of the form of international capital transfer, the investor with a foreign national, investing in another country for another country
Foreign investors are required to comply with the local laws of the host country The capital owner directly engages in the administration and management of their investments, holding rights and obligations that correspond to their contributed capital in production and business activities.
Foreign Direct Investment (FDI) offers significant advantages but also presents challenges for the host country Investors primarily aim to maximize their profits, which often leads them to determine the size and utilization of their capital in ways that prioritize their interests, potentially resulting in losses and disadvantages for the national economy.
Foreign Direct Investment (FDI) serves as a long-term capital source that enables host countries to leverage various aspects of economic development It often brings technology transfer, allowing these nations to access advanced technologies and management expertise Additionally, FDI leads to the establishment of factories and infrastructure, ensuring a stable and enduring contribution to the local economy.
Form of Foreign Direct Investment
FDI can take various forms, including joint ventures, and business cooperation contracts
Joint Venture Enterprise: A business entity formed by two or more parties, typically a foreign investor and a domestic partner, to undertake a specific project or establish a new company
International business involves diverse participants, including foreign partners and local investors This collaboration establishes a new enterprise governed by the host country's laws, where parties contribute capital, manage operations, and share profits and business risks.
Business Co-operation Contract: A contractual agreement between a foreign investor and a domestic partner to collaborate on a specific project
A joint venture between a foreign investor and a local partner in the host country involves a division of business results and clearly defined responsibilities, all outlined in signed agreements, without the creation of a new legal entity.
Building Operate Transfer: A project in which a private entity builds, operates, and transfers an infrastructure facility to the government after a specified period
A public-private partnership (PPP) is an investment agreement between a qualified government agency and an investor to develop infrastructure projects Upon completion of the construction, the investor transfers ownership of the project to the State of Vietnam, while the government grants the investor the right to operate the infrastructure for a specified duration, allowing them to recoup their investment and generate profits.
Public-Private Partnership: A cooperative arrangement between the public and private sectors to jointly develop and operate a project, sharing risks and rewards
A public-private partnership (PPP) is a contractual agreement between a competent state agency and an investor or project enterprise aimed at executing new construction projects or enhancing existing infrastructure and public services These contracts are characterized by the involvement of a state agency and their focus on infrastructure development and the provision of public services.
Building Transfer Operate: A project in which a private entity builds and transfers an infrastructure facility to the government, after which it operates the facility
A signed investment agreement between a foreign investor and a relevant state agency facilitates the construction of infrastructure projects Upon completion, the investor will hand over the infrastructure to the local government In return, the government grants the investor operational rights for a specified duration, allowing them to recoup their investment and generate profit.
Building Transfer: A project in which a private entity builds and transfers an infrastructure facility to the government without operating it
An investment agreement is established between an investor and a relevant state agency for the construction of infrastructure projects Upon completion of these projects, the investor transfers ownership to the host country The Government will facilitate opportunities for the investor to undertake additional projects to recoup investment costs and profits, or alternatively, will compensate the investor as stipulated in the Build-Transfer (BT) contract.
Foreign Direct Investment and the Economy
Foreign direct investment (FDI) is crucial for Vietnam's economic development, significantly benefiting the overall economy and local enterprises It fosters economic growth, drives technological innovation, creates jobs, enhances export activities, and contributes to human resource development.
1 Through FDI, countries invest in applying the advantages of low production costs of countries invested to lower product costs, reduce transportation costs, and improve investment capital efficiency
2 Allow the company to extend the life cycle of products produced
3 Helping the main companies to create a market to supply raw materials abundant, stable with cheap prices
4 Allow investors to expand the economy, and increase their ability on the World market For invested countries (host countries):
1 FDI resolves a shortage of capital for socio-economic development
2 Transferring technology from investment countries to invested countries
3 FDI makes foreign investment activities in the country grow, promoting dynamism and competitiveness in the country, creating the potential exploitation capacity of the country
4 Do not put invested countries into debt, not to be subject to economic, political or social constraints
While there are notable advantages to investment in exams, challenges arise in unstable economic and political environments, which can lead to significant capital losses for investors Additionally, if local countries fail to effectively plan capital usage, they risk depleting specialized talent and contributing to environmental pollution.
2.2.2 Positive impact on the economy
First, help international economic integration and strengthen external relations with different countries, organizations and large corporations in the world
Attracting foreign currency flows is crucial for the economic development of developing countries, with foreign direct investment (FDI) playing a significant role in boosting exports In fact, FDI constitutes a substantial portion of the total exports generated by these nations, highlighting its importance in fostering economic growth.
This proportion in Vietnam accounts for more than 50% and in the coming time tends to increase when our country integrates deeply into the world economy
Foreign investors significantly contribute to Vietnam's economic integration into the global market, particularly in the finance and banking sectors.
Second, develop human resources and create jobs for the locality
The influx of foreign-invested enterprises has significantly diversified industries in host countries, particularly in developing nations This has enabled employees to acquire valuable experience and enhance their skills through both domestic and international training opportunities As a result, the labor force has become more abundant and specialized, effectively supporting the country's industrialization and modernization efforts.
Foreign Direct Investment (FDI) enterprises typically offer higher salaries compared to domestic companies, enabling employees to enhance their living standards This increase in compensation often leads to greater productivity among workers.
Third, improve administrative procedures, and enhance transparency for the investment environment
To attract foreign direct investment (FDI), countries must prioritize the enhancement of their legal systems and administrative procedures, focusing on positive innovation, rationality, and fairness Furthermore, ensuring transparency and clarity in investment processes is crucial for fostering fair competition among investors, which is a key concern for all FDI enterprises.
Fourth, improve the competitiveness of the economy
Foreign investors pose significant competition for local businesses, driving them to enhance their performance and adapt to survive This competitive pressure ultimately contributes to the development of the domestic economy.
Fifth, create spillover effects to other economic sectors in the economy
Foreign-invested enterprises enhance operational efficiency by expanding production scales and increasing investment capital This growth not only boosts their own performance but also creates a spillover effect across various economic sectors The collaboration between domestic and foreign-invested enterprises facilitates the transfer of management skills, technology, and business practices, fostering overall economic development.
Lastly, contribute to technology development and transfer, especially in developing countries
Impact factors to attract foreign direct investment
Geographic location plays a crucial role in determining investment potential, as natural conditions, climate, and resources can either enhance profitability or pose risks for investors A strategic location, such as proximity to seaports, airports, and marine resources, significantly contributes to a country's competitive advantage in attracting foreign direct investment (FDI).
Vietnam's strategic geographical location significantly enhances its potential for tourism and tourism services development With abundant natural resources, the country is well-positioned to advance its marine economy and establish itself as a logistics hub for regional and global trade.
Vietnam is strategically positioned in the heart of Southeast Asia, featuring a lengthy coastline and natural attributes that greatly enhance its potential for marine tourism development.
Vietnam is experiencing a surge in Foreign Direct Investment (FDI) in clean energy initiatives, particularly in solar power projects like Dau Tieng 1 and Dau Tieng 2 located in Tay Ninh Province, according to data from the Ministry of Industry and Trade, Vietnam.
Sustainable manufacturing, particularly in information technology and green manufacturing, has seen significant foreign direct investment (FDI) According to the World Bank's "Vietnam Economic Development Report 2020," these sectors are experiencing notable growth, emphasizing their importance in the country's economic landscape.
In 2022, despite numerous unfavorable economic factors both domestically and internationally, Tay Ninh province saw a positive trend in attracting investment, securing a total of 16,500 billion VND in domestic and foreign capital, marking a 4.7% increase from the previous year The province initiated 56 new investment projects across various sectors, including agriculture, industry, and urban development consulting services, notably featuring two new solar power projects in the Dau Tieng lake area with a combined registered investment capital exceeding 7,000 billion VND.
In the past year, Tay Ninh has seen a significant influx of Foreign Direct Investment (FDI), primarily in the industrial sector Currently, the province boasts 370 FDI projects with a total investment of 9.2 billion USD, positioning it 15th among 63 provinces and cities in Vietnam for FDI attraction Additionally, there are 7,279 operational enterprises in the province, with a combined registered capital of 184,399 billion VND The investment climate in Tay Ninh remains stable, with project revenue and budget contributions showing consistent growth compared to the previous year.
The logistics center, dry ports, and various infrastructure projects, including the Hung Thuan general port and Moc Bai dry port, are pivotal to enhancing connectivity at the Tan Nam international border gate Additionally, the 49-hectare Ninh Thanh urban area and the Dau Tieng solar power projects (5.1 and 5.2) are set to boost regional development The implementation of investment projects such as the thematic sightseeing area and Ba Den Mountain Resort aims to support tourism in the Ba Den Mountain National Tourist Area, further promoting economic growth and attracting visitors.
Tay Ninh province is prioritizing the development of industrial parks (IPs) to attract investors, alongside its six existing parks The Provincial People's Committee has proposed to the Prime Minister and relevant ministries the addition and expansion of industrial parks in the region's development plan for 2021-2030, with a vision extending to 2050 The project aims to establish two new industrial parks and expand one existing park, covering a total area of 3,944 hectares to accommodate the growing demands of investors.
Vietnam's GDP growth in the Foreign Direct Investment (FDI) sector is 2.5 times greater than the overall economic growth rate, highlighting the sector's significant contribution to the nation's GDP, which continues to rise annually.
Vietnam's economy is experiencing rapid growth, outpacing many regional counterparts, with a notable shift in its economic structure from agriculture to industry and services This evolution reflects Vietnam's ongoing deep integration into the global economy.
Market Expansion: The consumer market for "Made in Vietnam" goods is increasingly expanding and stable, which helps Vietnam benefit from international trade
Stable GDP Growth: Vietnam has maintained steady GDP growth rates From 2018 to 2019, the GDP growth averaged 6.8%, and from 2019 to 2020, it was approximately 7.1% ("World Economic" International Monetary Fund)
Vietnam's strategic economic diversification has positioned it as a leading destination for Foreign Direct Investment (FDI), as highlighted in the United Nations Conference on Trade and Development (UNCTAD) World Investment Report This recognition underscores the country's successful efforts to attract global investors through a varied economic landscape.
In the first half of 2021, Vietnam experienced a 2.6% year-on-year decrease in total foreign direct investment (FDI) commitments, amounting to USD 15.27 billion Conversely, the FDI disbursement rate increased by 6.8%, reaching USD 9.24 billion.
Currently, Vietnam has totally 33,787 foreign investment projects with a combined registered capital of USD 397.89 billion, while the disbursed amount stood at USD 241.1 billion, 60.6 percent of the committed amount
Vietnam was up five places against last year’s ranking to reach 19th on the list, according to UN Conference on Trade and Development (UNCTAD)’s World Investment Report
In 2021, global foreign direct investment (FDI) flows plummeted by 35% to USD 1 trillion due to the COVID-19 pandemic, marking the lowest level since 2005 and a decline of nearly 20% from the 2009 financial crisis low Southeast Asia, a key driver of global FDI growth over the past decade, experienced a 25% contraction to USD 136 billion Despite this downturn, Vietnam remained one of the top three investment recipients in the region, with only a 2% decrease, while Singapore and Indonesia faced declines of 21% and 22%, respectively UNCTAD attributed the slight decline in FDI to Vietnam to significant reductions in manufacturing and real estate investments However, the country benefited from increased investment in electricity projects, including a USD 5 billion gas-fired power plant proposed by ExxonMobil and a USD 2.2 billion coal-fired power plant developed by Thai multinational enterprises in the Quang Tri Economic Zone, sustaining a positive FDI flow.
Singapore and Japan lead the rankings for investment projects, with Singapore contributing USD 5.64 billion, accounting for 37% of the total investments Meanwhile, Japan's investments surged to USD 2.44 billion, reflecting a remarkable 67% increase compared to 2019, according to the Ministry of Finance (07/2021).
Incentive Policies applied to attract FDI Experience from some countries
China has implemented a range of policies and strategies to attract Foreign Direct Investment (FDI) over the years Some of the key policies and measures include:
In the late 1970s, China launched its first Special Economic Zones (SEZs), such as Shenzhen and Zhuhai, to attract foreign investment through tax incentives, relaxed regulations, and infrastructure support, significantly contributing to the nation's economic growth The country has since streamlined its regulatory framework and reduced bureaucratic obstacles, facilitating easier business setup and operations for foreign investors Additionally, China has progressively loosened foreign ownership restrictions across various sectors, including finance, manufacturing, and services, while simplifying administrative processes for company registration and business activities.
China has made significant investments in modern infrastructure, focusing on high-speed rail networks, ports, and airports to enhance the movement of goods and services This emphasis on transportation and logistics infrastructure not only improves connectivity but also increases the country's attractiveness to investors, as noted by the Ministry of Commerce (MOFCOM).
China's tax incentives serve as a significant catalyst for attracting foreign direct investment (FDI), particularly in specific sectors The country has implemented a range of tax benefits for foreign investors, such as lower corporate tax rates in designated regions and industries, exemptions from value-added tax (VAT) on select income types, and research and development (R&D) tax incentives.
China is enhancing its Intellectual Property Rights (IPR) protection through amendments to patent and trademark laws and the creation of specialized IP courts Strengthening IPR is essential for attracting technology-intensive foreign direct investment (FDI), as emphasized by the China Investment Promotion Agency (CIPA).
China's strategic revisions to its Catalogue of Industries for Guiding Foreign Investment have successfully opened up various sectors to foreign investment, significantly enhancing market access for international investors and attracting foreign direct investment (FDI).
China has emerged as a leading investment destination for European and US investors, ranking as the second most significant globally In 2018, the country attracted 4,535 investment projects from the US, reflecting its robust foreign direct investment (FDI) appeal Key initiatives driving this investment surge include the upgrade of BMW's Shenyang factory, the establishment of Airbus's new assembly line in Tianjin, a joint venture between Linde and Sinopec's subsidiary for industrial gas production in Ningbo, Volkswagen's collaboration with JAC to manufacture electric vehicles, and four new Robert Bosch projects across Chongqing, Sichuan, Jiangsu, and Guangdong Additionally, Shell's second research center in partnership with Tsinghua University and Airbus's helicopter assembly line in Qingdao further exemplify China's strategic efforts to enhance its investment landscape.
In 2015, the European Union and China demonstrated significant economic commonalities, with GDPs of 14.72 trillion EUR and 9.75 trillion EUR, respectively, ranking second and third globally after the United States The report "EU - China Economic Relations to 2025 - Building a Common Future 21" highlights that enhancing trade, investment, and cooperation in science, technology, innovation, infrastructure, and financial services, along with fostering people-to-people exchanges, will elevate the quality of foreign direct investment (FDI) flows between both regions.
Thailand has enacted a range of policies and strategies aimed at attracting Foreign Direct Investment (FDI) to stimulate economic growth, highlighting its commitment to creating a favorable investment environment.
Thailand has created Special Economic Zones (SEZs) in key areas, especially near its borders with neighboring countries, to boost foreign direct investment (FDI) These zones provide attractive incentives such as tax breaks, lower import duties, and simplified administrative procedures Additionally, the Board of Investment (BOI) serves as Thailand's main agency dedicated to promoting and facilitating FDI.
It offers a range of incentives to foreign investors, such as corporate income tax exemptions, import duty reductions, and work permits for foreign employees
Thailand offers a range of tax incentives to attract foreign direct investment (FDI), including lower corporate income tax rates for targeted industries, exemptions from import duties on machinery and raw materials, and double taxation agreements with numerous countries to avoid double taxation on income.
Thailand has established numerous bilateral and multilateral trade agreements and investment treaties aimed at facilitating trade and offering legal protection for foreign investors, thereby enhancing market access for investors.
Thailand's industrial promotion policies focus on key sectors, including automotive, electronics, biotechnology, and renewable energy These targeted initiatives offer incentives and support to encourage investments in these priority areas.
Policy: Thailand offers incentives and favorable conditions for renewable energy projects, aiming to attract investments in clean and sustainable energy sources
Policy: Thailand invests in education and skills development to ensure a skilled labor force
It offers vocational training programs to meet the demands of industries, including technology and manufacturing
Support for Innovation and Technology:
Policy: Thailand promotes innovation and technology adoption by offering incentives for research and development (R&D) activities and supporting startups and technology-driven businesses (Ministry of Thailand Commerce)
Lessons from Thailand: Attracting FDI capital into industrial zones (IZs) is always considered by Thailand as one of the important factors in stimulating economic development In
1959, Thailand established the Ministry of Investment and in 1960 issued the Investment Law
Since 2005, Thailand has shifted its foreign direct investment (FDI) attraction policy to focus on selective investment, prioritizing domestic investors and fostering the growth of non-manufacturing and financial services These strategic policies have led to initial success in attracting FDI capital into the country.
Thailand's investment landscape, particularly in its industrial parks, is marked by adaptable policies that align with global market trends and the nation's development goals The country effectively supports strategies that evolve from import substitution to export orientation, and recently, it has successfully integrated both approaches to foster a balanced economic growth.
Thailand categorizes its investment incentive areas into three regions based on per capita income, each with distinct preferential policies Additionally, there are notable differences in investment incentives offered within industrial parks compared to those outside these designated zones.
Table 1 Investment incentives and outside industrial parks
Import Tax Outside Industrial Parks Incentives inside
Sector 2 Discount 50% Import tax exemption
Sector 3 Import tax exemption Import tax exemption
Corporate income tax Outside Industrial Parks Incentives inside
Sector 1 No discount 3 years tax exemption
Sector 2 3 years tax exemption 7 years tax exemption
Sector 3 8 years tax exemption 8 years tax exemption
Source: Ministry of Thailand Commerce
IMPACT FACTORS AFFECTING TO VIET NAM FDI INFLOW IN
Overview of Vietnam's FDI
- Volum of FDI inflow by scale of capital
Over the past 35 years, Vietnam has experienced significant fluctuations in Foreign Direct Investment (FDI) capital Data from the Ministry of Planning and Investment indicates that from 2010 to 2021, FDI capital constituted approximately 22-23% of the nation's total investment In 2022, Vietnam attracted nearly 27.72 billion USD in registered FDI, with realized FDI reaching a record 22.4 billion USD, marking a 13.5% increase compared to 2021 This achievement represents the highest level of FDI performance in five years, highlighting Vietnam's growing appeal as an investment destination.
Cumulatively by 2022, Vietnam has attracted nearly 438.7 billion USD of FDI capital;
Of which, 274 billion USD has been disbursed, accounting for 62.5% of the total valid registered investment capital
Figure 1 Realized foreign direct investment capital years 2018-2022
Source: Vietnam General Statistics Office (2022)
Foreign Direct Investment (FDI) capital flows into Vietnam have risen by 1.17 times over the past five years However, countries like Cambodia, the Philippines, and Singapore have experienced even greater increases, with growth rates of 1.7 times, 1.64 times, and 1.25 times, respectively Additionally, several other nations have also shown significant improvements in their FDI inflows.
Realized foreign direct investment capital years 2018-2022
Billion USD slowly than Vietnam such as: Thailand (1.13 times), Brunei (1.09 times), Malaysia (1.04 times) and Indonesia (0.9 times)
Figure 2 Nations and territories have invested the largest FDI in Vietnam
Source: Vietnam General Statistics Office (2022)
Vietnam has attracted investment from over 80 countries and territories, with significant contributions from major partners like Singapore, Japan, and Korea, which have been increasing annually The trend in foreign direct investment (FDI) is increasingly directed towards high-tech industries, including software, electronics, information technology, pharmaceuticals, and mechanical engineering.
Vietnam's Ministry of Planning and Investment highlights several key strengths in attracting foreign direct investment (FDI), including a stable political environment, a strategic geographical location, and a plentiful labor force The country's institutions, legal framework, and transparency are continuously improving alongside its integration efforts These factors not only provide a secure environment for long-term investments but also facilitate businesses' participation in global supply and value chains.
Nations & territories have invested the largest FDI in Vietnam
Total registed FDI (million usd) Number of projects
As of April 20, 2023, foreign investors have registered a total capital of over 8.88 billion USD, which includes new registrations, adjustments, and capital contributions, representing 82.1% of the amount recorded during the same period in 2022, according to the Foreign Investment Department of the Ministry of Planning and Investment.
Detailed information is as follows:
Till April 20, 2023, it is estimated that foreign investment projects have disbursed more than 5.85 billion USD, down 1.2% over the same period in 2022, up 1 percentage point compared to 3 months early 2023
As of April 20, 2023, the country boasts 37,065 valid projects with a total registered capital of approximately 445.9 billion USD Of this, the realized capital from foreign investment projects is estimated to exceed 279.8 billion USD, representing nearly 62.8% of the total registered investment capital.
Figure 3 Realized FDI in the first 4 months of 2023 and the period 2018 – 2023
Source: Foreign Investment Agency - Ministry of Planning and Investment
- Regarding the import and export situation:
Realized foreign investment capital (billion USD)
4 months of 2018 4 months of 2019 4 months of 2020
4 months of 2021 4 months of 2022 4 months of 2023
In the foreign investment sector, exports, including crude oil, are projected to reach approximately 81.19 billion USD, reflecting a 10.8% decrease compared to the previous period and constituting 74.6% of total export turnover When excluding crude oil, exports are estimated at 80.56 billion USD, also down by 10.8%, representing 74% of the nation's overall export turnover.
Imports of the foreign investment sector are estimated at 67.1 billion USD, down 15.5% over the same period and accounting for 65.2% of the country's import turnover
In the first four months of 2023, despite a decline in export turnover, the foreign investment sector achieved a significant trade surplus of nearly 14.1 billion USD, including crude oil, and approximately 13.5 billion USD when excluding crude oil In contrast, the domestic business sector faced a trade deficit of nearly 8.3 billion USD.
Volum of FDI inflow by the structure of foreign investment capital and capital investment methods:
In terms of capital structure, there was a significant rise in investment activity, with 750 new projects receiving investment registration certificates, marking a 65.2% increase compared to the previous period The total registered capital for these projects exceeded 4.1 billion USD, reflecting an 11.1% growth.
In the first four months of 2023, 386 projects registered for investment capital adjustments, reflecting a 19.5% increase compared to the previous year The total additional investment capital amounted to nearly 1.66 billion USD, marking a 68.6% decline from the same period last year However, this figure represents a 1.7 percentage point increase from the first quarter of 2023 and a 16.5 percentage point rise compared to the first two months of the year.
In the first four months of the year, foreign investors engaged in 1,044 capital contribution and share purchase transactions, marking a 1.8% increase compared to the previous year The total capital contribution value exceeded 3.1 billion USD, reflecting a significant rise of 70.4 billion USD over the same period.
In the first four months of the year, Vietnam's Foreign Investment Department reported a resurgence in foreign direct investment (FDI), with new investment capital rising by 11.1% after a slight decrease in the initial quarter The number of new investment projects also saw a significant increase of 65.2% compared to the previous three months, indicating that small and medium-sized foreign investors remain interested and confident in Vietnam's investment climate.
Large corporations are showing caution in their investment strategies due to the implications of the global minimum tax policy.
Despite a decline in adjusted investment capital during the same period, there was a notable increase in the number of projects with adjusted capital This trend highlights investors' growing confidence in Vietnam's investment environment and their commitment to expanding existing projects.
Table 2 FDI’s structure in the first 4 months of 2023 & capital investment methods
New registration Register for adjustments
Source: Foreign Investment Agency - Ministry of Planning and Investment
Vietnam has attracted investment from thousands of corporations and businesses from
In 2022, Vietnam attracted foreign direct investment (FDI) from 108 countries and territories, with the majority of its largest partners hailing from East Asia Singapore topped the list with an investment of approximately 6.46 billion USD, followed by South Korea at nearly 4.88 billion USD and Japan with over 4.78 billion USD Other significant investors included China, contributing 2.52 billion USD, and Hong Kong, with an investment of 2.22 billion USD.
Data analysis
3.2.1 Analyse factors impact on FDI inflow to VN in the period of 2018 – 2023
Vietnam's political landscape offers stability, with consistent state management agencies and a commitment to enhancing policies that protect foreign investors' rights The Law on Foreign Direct Investment underscores this commitment, stating, "The Vietnamese State is committed to ensuring foreign investors in Vietnam, ensuring fair and satisfactory treatment."
Between 2018 and 2023, Vietnam experienced a significant increase in foreign direct investment (FDI), reaching 330 billion USD in 2020, up from 251 billion USD in 2018, indicating the country's growing stability and appeal to foreign investors Notably, Asian nations such as Japan, Korea, and Singapore emerged as the primary sources of FDI, with Japan investing 9.2 billion USD in 2020, an increase from 8 billion USD in 2018, as reported by the Ministry of Planning and Investment.
Hanoi, the capital of Vietnam, is a major hub for foreign direct investment (FDI), attracting 291 projects in 2020 with a total investment value of $2.7 billion This significant influx of investment highlights the city's strategic location and robust investment infrastructure, underscoring its importance as a key destination for investors.
Ba Ria - Vung Tau and Dong Nai are prominent southern provinces in Vietnam for foreign direct investment (FDI), with Ba Ria - Vung Tau attracting over $5 billion in FDI in 2020, primarily in the manufacturing and heavy industry sectors, according to the Ba Ria - Vung Tau Department of Planning and Investment.
In the North Central region, Thanh Hoa and Nghe An are actively seeking to attract foreign direct investment (FDI), achieving investments of $3.3 billion and $1.34 billion in 2020, respectively However, they encounter stiff competition from other areas that offer superior infrastructure and management capabilities.
3 Investment Incentive Policies (National and Local):
Tax policies and investment incentives are crucial in attracting foreign direct investment (FDI) For instance, industrial parks and export processing zones frequently offer special reductions in import taxes and corporate income taxes to encourage business investments, according to the Ministry of Planning and Investment.
Local governments can implement a range of local incentives, including tax reductions, infrastructure support, and effective investment management, to attract investment For instance, Ba Ria - Vung Tau has successfully utilized tax policies and investment incentives to draw in significant projects, as reported by the Ba Ria - Vung Tau Department of Planning and Investment.
The distribution of Foreign Direct Investment (FDI) in Vietnam is influenced by various national and local factors, with local investment and management policies being crucial for attracting FDI To enhance investment appeal, localities must focus on improving infrastructure, managing investments effectively, and creating a favorable environment for investors from Asia and beyond.
Vietnam's stable social and political environment has made it an attractive destination for foreign investors, with the country securing 28.53 billion USD in new foreign direct investment (FDI) in 2020, marking a 2% increase from 2019 despite the challenges posed by the COVID-19 pandemic The influence of local governance is significant, as evidenced by the Southeast Economic Zone, which drew 51.3% of the total foreign investment capital in 2020, highlighting the importance of political stability in promoting regional FDI.
At the macro level, policies designed to attract foreign investment are becoming more appealing to investors However, the slow issuance of guiding documents and implementation decrees, along with their lack of detail, creates operational challenges for these investors.
Vietnam's political and social environment for foreign direct investment (FDI) is stable and promising, marked by significant reforms that enhance its economic, political, and social landscape These advancements demonstrate Vietnam's capacity to tackle challenges and solidify its role as a vital global partner Nevertheless, as Vietnam continues its journey of innovation and integration into the global economy, there remains a gap in understanding and confidence among some foreign investors regarding the country's policies promoting direct investment.
Some policies in Vietnam remain poorly defined and lack institutionalization, leading to delays in legal documentation and confusion due to overlapping regulations Additionally, investment consulting and promotion services do not fully meet requirements, as the existing companies lack professional enhancement in organization and staffing Most firms primarily offer basic services like organizing surveys and visa assistance, neglecting critical areas such as institutional frameworks and technical aspects, particularly in project construction and post-licensing implementation.
A stable macroeconomic environment is crucial for attracting foreign direct investment (FDI), and Vietnam exemplifies this with its consistent inflation rates hovering around 3.5% in recent years (Ministry of Finance 2022) Additionally, the State Bank effectively manages exchange rates and foreign exchange market fluctuations, further enhancing the country's economic stability.
Vietnam's economy has shown remarkable growth in recent years, highlighted by a GDP growth rate of 7.08% in 2018, positioning it as one of the fastest-growing economies globally Despite the global economic recession caused by the COVID-19 pandemic, Vietnam maintained positive economic performance, achieving a GDP growth rate of 8.02% in 2022, the highest from 2011 to 2022 Additionally, the average GDP per capita in 2022 reached approximately 95.6 million VND (around 4,110 USD), marking an increase of 393 USD compared to 2021.
Ho Chi Minh City and Bac Giang: Attract good FDI
Ho Chi Minh City stands out as a premier destination for foreign direct investment (FDI), thanks to its robust infrastructure, diverse workforce, and strong management capabilities This vibrant city has successfully attracted significant FDI projects from major corporations like Samsung and Intel, solidifying its reputation as a key player in the global investment landscape.
Result and discuss
In 2022, Vietnam attracted nearly 27.72 billion USD in registered foreign direct investment (FDI), with realized FDI reaching a record 22.4 billion USD, marking a 13.5% increase compared to 2021 This achievement represents the highest FDI performance in five years, from 2017 to 2022 Since 1986, Vietnam has cumulatively drawn in approximately 438.7 billion USD in FDI, with 274 billion USD disbursed, accounting for 62.5% of the total registered investment capital.
In September 2022, the Heineken Brewery was inaugurated in Vung Tau, marking the launch of significant new projects with substantial investment Following a capital increase, the total investment reached 9,151 billion VND, enabling the brewery to achieve a production capacity of 1.1 billion liters per year, which is 36 times greater than its previous output.
Heineken, the largest brewery in Southeast Asia, boasts the fastest canning line across all Heineken breweries globally Meanwhile, the Quang Ninh LNG Gas Power Plant project in Japan received a new investment registration certificate in October 2022, amounting to nearly $2 billion in total investment capital.
In 2022, numerous projects significantly boosted their investment capital, particularly in the manufacturing of electronic and high-tech products Notably, the Samsung Electro-mechanics project in Thai Nguyen saw its capital increase twice, first reaching 920 million USD.
Samsung HCMC CE Complex Electronics Co., Ltd has increased its project capital to over 841 million USD, marking a significant investment boost Additionally, electronic manufacturing factory projects in Bac Ninh, Nghe An, and Hai Phong have seen substantial capital increases of 306 million USD, 260 million USD, and 127 million USD, respectively This expansion highlights Samsung's commitment to enhancing its manufacturing capabilities in Vietnam.
Figure 8 Top 5 largest foreign investors in Vietnam 2022
Source: Ministry of Planning and Investment (December 20, 2022)
In 2022, Vietnam attracted investments from 108 countries and territories, with Singapore leading at approximately 6.46 billion USD Korea followed in second place with nearly 4.88 billion USD, while Japan secured third with over 4.78 billion USD Other notable investors included China, contributing 2.52 billion USD, and Hong Kong with 2.22 billion USD.
In 2022, Korea emerged as a leading investment partner, actively making new investment decisions and expanding existing projects It accounted for 20.4% of new projects and contributed significantly to capital and share purchases, representing 34.1% of total contributions.
In 2022, foreign investors poured capital into 19 out of 21 economic sectors, with the processing and manufacturing industry leading the way at over 16.8 billion USD, representing 60% of total investments The real estate sector followed, attracting more than 4.45 billion USD, or 16.1% of the total registered investment capital Additionally, the electricity production and distribution industries secured 2.26 billion USD, while professional science and technology activities garnered nearly 1.29 billion USD in registered capital Other industries also contributed to the diverse investment landscape.
The wholesale and retail sectors, along with the processing industry, manufacturing, and professional science and technology activities, led in new project attraction, collectively accounting for 30%, 25.1%, and 16.3% of total projects, respectively.
Top 5 largest foreign investors in Vietnam 2022 (billion USD)
Singapore Korea Japan China Hong Kong
Vietnam is an attractive destination for foreign investors and is facing a golden opportunity to attract large amounts of investment capital into economic zones and industrial parks
In 2022, foreign investors allocated funds across 54 provinces and cities in Vietnam, with Ho Chi Minh City leading at over 3.94 billion USD, representing 14.2% of the total registered investment and a 5.4% increase from 2021 Binh Duong followed in second place with more than 3.14 billion USD, accounting for 11.3% of the total and a significant rise of 47.3% compared to the previous year Quang Ninh secured the third position with nearly 2.37 billion USD, which constitutes 8.5% of the total capital and more than double the investment from the same period in 2021.
Foreign investors are increasingly channeling their investments into major urban centers like Ho Chi Minh City and Hanoi, attracted by their robust infrastructure Ho Chi Minh City stands out with 43.9% of new projects, 67.6% of capital contributions and share purchases, and holds the second position for capital adjustment projects at 17.3%, just behind Hanoi's 18.6%.
In 2022, foreign investment in Vietnam reached nearly 27.72 billion USD, encompassing newly registered capital, additional registered capital, and capital contributions and share purchases Despite a decrease in newly registered capital, the number of new investment projects rose, along with an increase in adjusted investment capital compared to the same period in 2021.
Figure 9 FDI registered in Vietnam as of July 20, 2019-2023 (Billion USD)
New Registed Register for adjustments Capital/Share contribution
In 2020, Vietnam recorded 33,070 valid foreign direct investment (FDI) projects, with a total registered capital of $384 billion, according to the Foreign Investment Department of the Ministry of Planning and Investment The realized capital from these projects reached an estimated $231.86 billion, representing 60.4% of the total registered investment capital Notably, while the number of projects adjusting investment capital decreased by 17.5% to 1,140 compared to 2019, the total adjusted investment capital rose by over $6.4 billion, marking a 10.6% increase from the previous year.
Vietnam's foreign direct investment (FDI) landscape has shown promising growth since 2021, with registered FDI capital reaching $31.15 billion, marking a 9.2% increase compared to 2020 Both new and adjusted investment capital have risen, particularly notable is the 40.5% surge in adjusted capital.
In August 2021, amidst the ongoing complexities of the COVID-19 pandemic, our country successfully attracted $2.4 billion in registered foreign direct investment (FDI), marking a significant 65% increase compared to July 2021, thanks to various flexible response strategies.
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Current Issues in Attracting FDI
The COVID-19 pandemic significantly disrupted global supply chains, impacting both production and trade Lockdowns and travel restrictions created substantial challenges for existing and potential foreign investors, highlighting the vulnerabilities in international commerce.
Vietnam is facing a significant shortage of skilled labor, especially in key sectors such as technology and manufacturing To attract and satisfy foreign investors, it is crucial for the country to prioritize workforce development initiatives.
- Infrastructure Development: While Vietnam had been investing in infrastructure development, there was still a need for improvements in transportation, logistics, and energy infrastructure to support the growing FDI inflow
- Regulatory Reforms: Ensuring a consistent and transparent regulatory environment for investors remained a priority Simplifying administrative procedures and reducing red tape were ongoing efforts
- Intellectual Property Protection: Protecting intellectual property rights and enforcing
IP laws were areas of concern for foreign investors, particularly in technology- intensive industries
- Environmental Sustainability: As FDI increased, there was growing attention to environmental sustainability and responsible business practices Stricter environmental regulations were expected
Vietnam is facing intensified competition from regional players like Thailand and Indonesia in attracting foreign direct investment (FDI) To maintain its competitive edge, Vietnam must enhance its business environment and provide appealing incentives In 2022, the total foreign investment in Vietnam, including newly registered capital and adjustments, fell to 27.72 billion USD, marking an 11% decrease from 2021 This decline reflects broader global economic challenges and specific risks faced by Vietnam, including investor uncertainty stemming from geopolitical conflicts such as the Russia-Ukraine war, rising inflation, and tightening global financial conditions Additionally, the ongoing disruptions in supply chains and a decrease in global commodity demand have further impacted FDI inflows into the country.
In 2022, various factors exerted considerable downward pressure on global foreign direct investment (FDI) capital flows, adversely impacting the foreign investment dynamics of major economies, particularly those partnering with Vietnam This decline has led to a noticeable reduction in the attractiveness of foreign investments in Vietnam.
In 2022, foreign direct investment (FDI) enterprises in Vietnam acknowledged improvements in the business environment, including reduced inspections and enhanced administrative procedures, along with the elimination of unofficial costs and better labor and infrastructure quality However, challenges remain, particularly in reforming administrative procedures where businesses still face difficulties related to tax, fire prevention, import-export processes, investment registration, and social insurance To foster a more conducive environment for investment projects, Vietnam must streamline procedures for construction-related activities, including licensing, fire safety assessments, and environmental impact evaluations Additionally, ongoing efforts to combat corruption and negative practices are crucial, especially in sectors like import-export, inspections, court proceedings, and land administration.
The decline in newly registered capital impacts both disbursed capital and future economic development, indicating inadequate preparation in land and human resource management Key factors contributing to this decrease include challenges in attracting new investments.
COVID-19 control measures have hindered foreign investors from traveling to Vietnam, limiting their ability to explore investment opportunities and register new projects in recent months.
2021, thereby affecting the number of newly licensed investment projects in the first months of 2022
The global market is currently experiencing significant fluctuations driven by geopolitical conflicts in Europe, escalating inflationary pressures, and disruptions in supply chains These factors are adversely impacting the flow of investment capital from major economies to foreign countries, particularly affecting Vietnam's investment partners.
The decline in newly registered capital can be attributed to a significant drop in large-scale projects, specifically those exceeding 100 million USD In 2021, these substantial investments represented 62.8% of the total newly registered capital However, in 2022, the share of such high-capital projects decreased dramatically to just 37.2% of the total investment capital, indicating a shift in the investment landscape.
In 2022, the decline in newly registered capital in Vietnam can be attributed to several limitations, including delays in administrative procedures, approval documents, and survey licensing, which hinder project development Additionally, there is a significant shortage of human resources, particularly in information technology and artificial intelligence, essential for enhancing Vietnam's competitiveness Other factors such as tax issues, limited investment incentives, restrictive visa policies, and the ongoing "brain drain" phenomenon further diminish the country's ability to attract and expand investments.
The decentralization of local authorities to license and manage foreign direct investment (FDI) projects has sparked creativity in attracting investments; however, this widespread decentralization has led to unhealthy competition among localities, often disregarding local characteristics Many regions are issuing excessive investment incentives and regulations that exceed their authority, resulting in projects that disrupt planning and, in some cases, licenses that cannot be implemented To address these issues, it is essential to develop a screening toolkit that improves FDI project appraisal processes, aligning with Vietnam's new focus on attracting high-quality investments rather than merely increasing quantity.
Vietnam faces significant challenges in its investment environment, and without prompt improvements, the country may struggle to enhance its appeal to foreign investors in the near future.
Policy recommendation
The trend of foreign investment in various countries is beginning to slow, prompting Vietnam to adopt effective strategies to attract high-quality FDI Despite the significant potential for foreign investment in Vietnam, it is essential to convert this opportunity into reality by attracting projects from reputable investors that ensure high returns and effectiveness.
Vietnam has become a prominent destination for over 32,000 foreign projects, attracting a total registered capital of $378 billion from 136 countries and territories Major investors include Japan, Korea, China, and Singapore, highlighting the strong confidence in Vietnam's investment environment Notably, 63.9% of Japanese businesses operating in Vietnam plan to expand their operations, the highest percentage in ASEAN and third in Asia and Oceania, following Bangladesh and India.
Promote Vietnam's investment opportunities globally through targeted marketing campaigns and participation in international investment forums and exhibitions
Establish investment promotion agencies to provide support and guidance to potential investors
Vietnam aims to attract multinational corporations and renowned brands, particularly from technology-strong regions like the US, EU, and Japan The country is committed to promoting strategic investments at a national level to engage directly with global supply chains By actively creating and advocating for high-value production and business stages, Vietnam seeks to enhance its economic landscape rather than waiting for investors to arrive.
In the first quarter of 2020, Vietnam's GDP growth rate reached 3.82%, the lowest during 2009-2020 but the highest among its regional peers, signaling strong investment confidence Effective anti-epidemic measures have prompted multinational corporations to reconsider their investment strategies, with many investors looking to relocate from China amid challenges posed by the US-China trade war As a result, Vietnam has emerged as a preferred destination for foreign investment.
Continue to streamline bureaucratic processes, reduce paperwork, and enhance transparency in administrative procedures related to investment
Invest in education and vocational training programs to develop a skilled labor force, particularly in high-demand sectors such as technology and manufacturing
Prioritize investments in transportation, logistics, energy, and digital infrastructure to support the needs of FDI projects
Regularly review and update investment laws and regulations to ensure they remain competitive and align with international standards
Strengthen intellectual property protection and enforcement to safeguard the interests of foreign investors
Enforce stricter environmental regulations and promote sustainable business practices to align with global standards and address environmental concerns
To effectively attract foreign direct investment (FDI) post-COVID-19, Vietnam must enhance its investment environment and amend policies to draw in foreign investors The country boasts significant advantages, including a strong international reputation due to its successful pandemic management, which has facilitated economic recovery and elevated its global standing This creates a prime opportunity for Vietnam to position itself as a safe investment destination Additionally, Vietnam offers competitive benefits such as political stability, a large consumer market, an innovative government, and a cost-effective labor force However, concerns about policy instability and inadequate legal regulations persist, complicating the investment process Therefore, it is crucial to streamline export and import procedures, simplify business establishment processes, and digitize customs, tax, and social insurance administrative tasks These improvements could enhance national competitiveness and save over 18 million working days annually, translating to more than 6,300 billion VND in savings.
Develop regional strategies to promote investment in specific areas and diversify FDI across different regions of the country
Collaborate closely with industry associations and chambers of commerce to understand the needs of investors and address their concerns
Maintain competitive tax incentives and ensure currency stability to attract and retain foreign investors
Enhance transparency, governance, and anti-corruption efforts at all levels of government to create a more favorable investment climate
Regularly assess the effectiveness of investment promotion efforts and policy changes to make necessary adjustments
Consider offering customized incentives to attract FDI in specific industries or technologies deemed critical for economic development
Embrace digital transformation to create a more efficient and transparent business environment, including e-government initiatives
Leverage international trade agreements and economic partnerships to expand market access and attract FDI from countries with which Vietnam has agreements
Provide comprehensive support services to foreign investors, including assistance with permits, licenses, and land access
To enhance foreign direct investment (FDI) and support domestic private enterprises, Vietnam must eliminate unofficial costs that impede capital flow The country should actively promote itself as a safe and reliable investment destination while connecting with global corporations to explore investment opportunities Timely policy dialogue is essential to address challenges faced by FDI enterprises, particularly in administrative and land procedures Additionally, Vietnam needs to prioritize investments in infrastructure, improve human resource quality, optimize logistics costs, and enhance research and development (R&D) efforts, along with providing adequate housing for workers.
Anh, N T (2019) Thực trạng và giải pháp thu hút đầu tư trực tiếp nước ngoài vào Việt Nam thời gian tới Hai Phong: Hai Phong University
In her 2019 article, Hằng T N examines the negative aspects of foreign direct investment (FDI) in Vietnam The analysis highlights how FDI can lead to economic disparities, environmental degradation, and the potential loss of local businesses Hằng emphasizes the need for a balanced approach to FDI that safeguards national interests while promoting sustainable development The article serves as a critical resource for understanding the complexities of FDI's impact on Vietnam's economy and society.
Over the past 30 years, Vietnam has successfully mobilized Foreign Direct Investment (FDI), leading to a transformative vision and new opportunities across various sectors This significant period has fostered economic growth and development, positioning Vietnam as an attractive destination for international investors The insights gathered from this extensive report highlight the potential for future FDI initiatives, emphasizing the importance of strategic planning and policy reforms to enhance Vietnam's investment climate.
Le Thi Nhu Hang, Nguyen Duc Duong (2023) Các yếu tố ảnh hưởng đến tình hình thu hút
FDI vào Việt Nam Kinh tế và Dự báo, 11
Bài viết của các tác giả Vo Thi Ngoc Trinh, Pham Huynh Thanh Truc và Dang Thi Ngoc Tram (2020) nghiên cứu các yếu tố ảnh hưởng đến đầu tư trực tiếp nước ngoài (FDI) trong bối cảnh hội nhập kinh tế, tập trung vào các nước Đông Nam Á Nghiên cứu này cung cấp cái nhìn sâu sắc về các yếu tố quyết định FDI, từ chính sách kinh tế đến môi trường đầu tư tại khu vực, giúp hiểu rõ hơn về tác động của hội nhập kinh tế đối với sự phát triển của FDI trong khu vực Đông Nam Á.
Minh, T Đ (2018) Đề tài Thực trạng đầu tư trực tiếp nước ngoài (FDI) ở Việt Nam Ho Chi
Minh: Trường Đại học Sư phạm Kỹ thuật Thành phố Hồ Chí Minh
Ngo Phuc Hanh, Dao Van Hung, Nguyen Thac Hoat & Dao Thi Thu Trang (2018)
Improving quality of foreign direct investment attraction in Vietnam Viet Nam: Ngo
Phuc Hanh, Dao Van Hung, Nguyen Thac Hoat & Dao Thi Thu Trang
Ngoc, D H (2023) Kinh tế Việt Nam năm 2022 và triển vọng 2023 Viet Nam: Doctor HÀ
Oanh (2022) explores the impact of foreign investment on the development of high-quality human resources in Vietnam The study highlights how foreign direct investment contributes to enhancing workforce skills and competencies, ultimately driving economic growth It emphasizes the importance of integrating international standards and practices into local training programs to improve labor quality Additionally, the article discusses the role of foreign companies in fostering innovation and knowledge transfer, which are crucial for sustainable development in the Vietnamese labor market.
Office, G S (2023) SOLUTIONS TO PROMOTE ATTRACTING FOREIGN DIRECT
INVESTMENT IN THE LAST MONTHS OF 2023 Viet Nam: General Statistics
PGS., TS Phạm Thị Thanh Bình; PGS., TS Vũ Văn Hà (2022) Thu hút FDI của Việt Nam năm 2022 và triển vọng Viet Nam: State Bank of Vietnam
Phạm Thị Oanh và Nguyễn Thị Hồng Hạnh từ Trường Đại học Thủ Dầu Một (2023) đã nghiên cứu kinh nghiệm thu hút vốn FDI tại Singapore và rút ra bài học cho Việt Nam Nghiên cứu này cung cấp cái nhìn sâu sắc về các chiến lược hiệu quả mà Singapore đã áp dụng để thu hút đầu tư nước ngoài, từ đó đưa ra những gợi ý thiết thực cho Việt Nam trong việc cải thiện môi trường đầu tư và tăng cường thu hút vốn FDI.