phân tích vai trò của FDI với nền kinh tế VN e

Phân tích vai trò FDI với Kinh tế VN CONTENTS I Background II FDI to Vietnam FDI into Vietnam .3 The role of FDI to Vietnam economy .5 Restriction of FDI in Vietnam FDI from Vietnam to foreign countries Investment areas which Vietnamese companies are most interested in .10 Key investment regions of Vietnam 12 SWOT Analysis of oversea FDI investment 13 a Strengths .13 b Weaknesses 13 c Opportunities 14 d Threats 14 Oversea FDI Investment Analyses 15 a Advantages: 15 b Disadvantages: .15 Suggestions .16 a For the Government .16 b For the companies 17 III Conclusions 18 I Background According to International Monetary Fund (IMF), FDI is defined as "an investment with long-term relationship, under which an organization in an economy (direct investor) obtains long-term benefits from an enterprises located in a different economy The purpose of the direct investor is to have more influence in terms of management over the enterprise located in other economy The 1987 Law on Foreign Investment in Vietnam introduced the concept of "foreign direct investment to be an activity in which a foreign organization or individual brings into Vietnam foreign capital in cash or any assets approved by Vietnamese government in order to cooperate in business activities on the basis of contracts or setting up joint venture enterprises or enterprises with 100% foreign capital under the provisions of this law” FDI can be implemented in many forms, from 100% foreign owned, joint ventures, BOT / BTO / BT, M&A and bring many benefits to both investing countries and companies as well as invested nations and enterprises Therefore, FDI has always been regarded as having great importance by countries and were greatly competed for For Vietnam, after the turning point of reform in 1986, FDI has flown in with the trend of increasing, especially after the country entering WTO Additionally, in recent years, FDI trends from Vietnam to foreign countries (especially countries in Indochina) have emerged and grown The question here is how to view this trend; how to analyze the positive and negative to have right conclusions and direction II FDI to Vietnam FDI into Vietnam After the economic downturn in 2008, Vietnam has continued to recover and attract direct investment from abroad - The data over the years (up til 2010) + The total investment of 192.92 billion USD + The total number of projects: more than 10.000 In 2010, U.S ranked number one in FDI investment in Vietnam with a total value in 2010 of 10 billion USD; there are 25 in the Top 500 leading U.S companies planning to invest in major projects in Vietnam, including Intel, Chevron… In 2009, the total newly registered direct investment projects is worth about USD 21,48 billion, of which 16,34 billion is from newly-approved projects (contributing 76%, 839 projects) Top provinces attracting FDI in Vietnam are the province of Ba Ria-Vung Tau (6,73 billion USD, of which 2,857 billion is from 12 newly-approved projects), Quang Nam (4,174, 4,150, 1), Binh Duong (2,502, 2,152, 95) Ho Chi Minh City and Hanoi rank at No and accordingly However, the number of permits issued by the major economic centers of Vietnam is nearly 537 licenses (64% of the total number of licenses issued in Vietnam) - Percentage over the years + In terms of investors, ranked at number one is Taiwan with 11.8%, followed by South Korea, Singapore, Japan, Malaysia, British Virgin Islands, U.S … + In terms of regions + In terms of business areas (2009 data) The role of FDI to Vietnam economy So far, foreign direct investment (FDI) has been recognized as one of the "pillars" of economic growth in Vietnam The role of FDI is shown very clearly through: - The most visible important contribution of it is the increase in investment capital for economic growth The advantage of this capital source over other investment types lies in the associate of technology transfer, export promotion, modern management knowledge acquirement Furthermore, compared to other capital sources, FDI is less sensitive to the fluctuations in the global financial market - Technology transfer through FDI is one of the main groundbreaking channels to improve the technological capacity of Vietnam Technology transfer through FDI projects have always associated with training opearating personnel Thus, skilled staff and technician workers were formed - Export promotion is an outstanding contribution which clearly shows the contributing role of FDI in the past 10 years of economic reform Year 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 % 10 20 30 40 50 60 70 80 90 100 Export of the FDI area Export of the whole country According to export statistics of the Ministry of Industry and Commerce 2010 - Creating jobs is an important, undeniable contribution of the FDI area As of 2007, the FDI sector has created more than 1.2 million direct jobs Among those, many workers have been trained in the country and abroad Therefore, the quality of the workforce in the region was significantly improved - FDI has contributed significantly to the State budget revenues In years from 2001 to 2005, budget revenue acquired from FDI sector reached USD 3.6 billion; particularly, the years of 2006 and 2007 had contributed to the budget an amount of more than billion dollars With that, FDI has speed up the integration process of Vietnam into the world economy Restriction of FDI in Vietnam - Beside positive points above, FDI has been creating many problems and negative effects which create community frustration The quality of attracted FDI is still low, and it’s hard to deny the fact that it lacks the long-term sustainability The most obvious limitation is the low value added - The link between FDI sectors with domestic firms is very limited The supporting industries as well as the production links in the supply chain of goods haven’t been formed Only 38% intermediate products in the FDI production chain was purchased from domestic companies, while 54% was purchased from abroad Usually, the supporting industries can generate 80-95% of the value added for products, however the manufacturing and assembling enterprises in Vietnam have to import up to 70-80% of supporting products Due to this limitation, the value created in Vietnam is still very low - Environmental consequences of FDI projects are clearly disclosed as seriously destroying the habitat Recent, the public was very angry about the waste of VEDAN project which destroyed the whole Thi Vai River Obviously, these consequences are very serious and are reducing the sustainability of economic growth FDI from Vietnam to foreign countries By the end of 2/2011, Vietnam has had 575 investment projects in 55 countries and territories around the world with total registered capital of over USD 23.7 billion In particular, the capital of Vietnamese enterprises has exceeded 10 billion USD This proved the competitiveness and growth of enterprises in Vietnam, and also shows a new transition in scale and production methods from fragmented and obsolete to strategic and updated after more than two decades of development, contributing in bringing Vietnamese products and brands closer to the world market Looking back on the journey of inversting abroad of Vietnamese enterprises, it can be divided into three major stages as followed: Stage from 1989-1998: spontaneous, small and fragmented Prior to the Decree No 22/1999/ND-CP dated 04/14/1999 of the Government's regulations on foreign investment, Vietnamese companies had 18 overseas projects with total registered capital reached 13.6 million, averagely 0.76 million per project The abroad investment activities in Vietnam during this period mainly come from internal needs of the business The reason is that early in 1990, FDI in Vietnam had continously increased, especially in the textile sector, the annual export quota is not met their production capacity Besides, the "forests closing"policy and the ban on inshore fishing to protect natural resources and environment had had some impacts on the production and business activities of some enterprises in the consumer goods processing and manufacturing industry Therefore, in order to offset the "gap", a number of businesses have moved their operation area and find some profitable opportunities in neighboring countries The companies pioneered in this practice are private enterprise located near the border with Laos and Cambodia, on the basis of bilateral agreements between the two governments Stage from 1999 - 2005: a big transform in both quantity and quality Vietnam had 131 new investment projects abroad with total registered capital of 559.89 million, up times in terms of the number of projects and 40 times in terms of registered capital compared to the period of 1989 to 1998; the average size of capital/project was also much higher, reaching 4.27 million/project We had this big step forward thanks to the Government’s issuing of the Decree No 22/1999/ND-CP and other guidance documents, marking a milestone in the formation of legal basis for oversea investment activities of enterprises in Vietnam, creating favorable conditions for investment opearation abroad by Vietnam enterprises to achieve certain results Also, in 2005, the Government had submiited to the Congress legislation related to investment activities abroad; this regulation then took effect in 7/2006, including investment activities abroad by the enterprises of Vietnam Next was the Government's Decree 78/2006/ND-CP, dated 09/9/2006 to guide in implementing the 2005 Investment Law with four main objectives: i) conform to the practical operation; ii) clearer and more specific regulations; iii) strengthening the effectiveness of state management, and iv) simplification of administrative procedures Decree 78/2006/ND-CP also defined that the investors and enterprises in all economic sectors (including enterprises with foreign invested capital), is entitled to invest abroad, have the independence and responsibiluity in business activities, is allow to select or changed organizational form of internal management or investment forms to adapt to business requirements and the protection of the law of Vietnam; minimize the regulation of “asking – granting" or "approving which is unreasonable, unnecessary and against the principles of free enterprise, causing inconvenience for investment activities; take into account the negotiation progress in multilateral and bilateral agreement about international economic integration, especially the principle of national treatment and MFN In addition, Decree 78/2006/ND-CP also specifies the responsibilities of State management agency towards investors and businesses, gives guidance on the implementation of that relationship, as well as institutional regulations in case of violations from either side (investors and agencies, government officials) if not comply strictly the provisions of law Thus, through the issuance of the Investment Law in 2005, the legal framework of investment activity abroad has gradually been perfected over the time, Decree No 78/2006/ND-CP dated 9/8/2006 on foreign investment has replaced Decree No 22/1999/ND-CP, while procedures for foreign investment were specifically instructed in a clear and simple way in Decision No 1175/2007/QD-BKH dated 10/10/2007 of the Ministry of Planning and Investment Stage from 2006 till now: the booming stage From the date of 09.09.2006 (one day after the issuance of Decree No 78/2006/ND-CP) to the end of 2007, Vietnamese enterprises have invested 100 overseas projects with total registered capital reaching over 816,49 million USD; only 76% of the total number of projects of the period from 1999 to 2005; however it’s a double increase in terms of registed capital, average capital per project also doubled, reaching USD 8.16 million/project This trend continues to grow strongly in 2008 with registered capital of over $ billion for 113 new projects and 10 projects asking for capital increase In 2009, due to the global economic downturn, the initial investment plan is adjusted to reduce the estimated capital of about USD 2.8 billion But the reality has not gone according to prediction of the business forecast agency as Vietnam enterprises was considering this as an opportunity to expand markets and seek new investment areas As a result, in 2009, overseas investment of Vietnamese enterprises had reached 7.2 billion USD with 457 projects, including newly registered and raised capital in more than 50 countries and territories, achieved 143% of the target and was 214% compared to the the entire period from 1989 to 2008 in terms of capital These were very positive results in the context of decreasing FDI flows under the impact of economic crisis which had led to the collapse of numerous companies This is explained by the lagging effects of Vietnam's economy to the impacts of the global and regional economy; even though our economy is relatively open in terms of trade portion In 2010, the number of approved investment projects dropped dramatically compared to 2009 with only 107 projects and registered capital reached only 2,926 billion USD; nearly equal to the level of 2008; in that, implemented capital was about 900 million USD However, it can stil be considered a major effort of Vietnamese companies, especially in the context of a global economic recession which has really put us into the big challenges of development when facing high inflation and the requirement of restructuring the economy towards sustainable and more efficient, instead of just being based on the increase in capital, or cheap labor VIETNAM’S INVESTMENT TO OVERSEA IN EACH STAGE Amount (million 1989 - 1998 1999 - 2005 2006 - 2/2011 13,6 559,89 23.126.510.000 18 131 426 0,76 4,27 5,429 USD) Number of Projects Capital/Project (million USD) (Source: The Bureau of Foreign Investment, The Ministry of Planning and Investment.) However, since the domestic market is becoming increasingly cramped by the participation of many prestigious companies in the world, the scarcity of a variety of input materials for production, plus the expensive shipping costs due to unstable fuel prices and tariff barriers (both technical and non-technical) are continuously being set up; in order to approach the market quickly and efficiently, the FDI measure is still the first choice of businesses Therefore, in the first two months of 2011, although the domestic economy still faced many difficulties, but Vietnamese companies still invested oversea with more than 1,26 billion USD in 16 projects, less than $300 million compared to the FDI inflow into Vietnam during the same period, but it’s 93 times higher compared to the first 10 year when we started to invest abroad If calculated from 1999 to 2005, the total investment abroad is also only 58% of the registered capital achieved in months in 2011 Notably, the average size of each project at this point has been raised many times higher compared the entire period before, reaching an average 79 million/project, while each FDI project that Vietnam received during the same period averaged only 14.6 million / project Investment capital of the five large corporations including Petroleum, Coal – Mining Industry, Rubber Industry, Viettel, Song Da Corporation was accounted for 67% of the funds transferred to oversea to invest of different economic forces Investment areas which Vietnamese companies are most interested in 10 INVESTMENT AREAS WHICH VIETNAMESE COMPANIES ARE MOST INTERESTED IN (Only including the valid projects) Investment Number capital of the No Industry Investment Chartered capital of Capital of of projects in Vietnamese Vietnamese projects oversea investors investors (USD) (USD) (USD) 16.912.881.48 Mining 88 4.309.845.565 3.725.845.565 Forestry and agriculture; seafood 2.112.875.678 1.870.369.133 1.677.722.938 10 INVESTMENT AREAS WHICH VIETNAMESE COMPANIES ARE MOST INTERESTED IN (Only including the valid projects) Investment Number capital of the No Industry Art and Entertainment Investment Chartered capital of Capital of of projects in Vietnamese Vietnamese projects oversea investors investors (USD) (USD) (USD) 59 1.266.458.757 1.183.169.314 1.183.169.314 and distributing 1.034.550.000 1.034.550.000 1.034.550.000 Information and Media 28 741.322.116 507.456.061 507.456.061 110 558.973.400 437.950.246 437.950.246 Insurance 17 225.128.000 216.451.000 216.451.000 Real Estate 28 394.974.634 159.042.634 159.042.634 98 205.201.842 150.786.875 150.286.875 10 Scientific Technology 59 42.748.556 36.611.656 11 Other investment areas* 78 240.607.214 132.626.766 132.626.766 Electricity, air, water, air conditioning manufacturing Processing and Fabricating industry Finance, Banking and Wholesaling and Retailing; Repairment service Profession activities, Total 575 23.735.721.67 10.038.859.25 36.611.656 9.261.713.055 Notes: Other investment areas include: health care and social assistance; accommodation and catering services, construction, transportation and warehousing, education, (Source: The Bureau of Foreign Investment, The Ministry of Planning and Investment) Key investment regions of Vietnam In addition to promoting and maintaining business operations in the traditional areas in Laos, Cambodia, Russia and Algeria, Vietnamese companies has successfully opened up new markets which have new degree of competition and demand high technology, as well as the capacity of project development and management such as U.S, Japan, Hong Kong and Taiwan - which are being considered as the destinations of the top investors in Vietnam at the moment, or a some countries in Latin America such as Venezuela, Cuba, Peru and Africa and the Middle East such as Mozambique, Iran, Iraq, 10 KEY INVESTMENT REGIONS OF VIETNAMESE COMPANIES Number No Country/Territory of projects Laos Investment Investment capital of the capital of projects in Vietnamese oversea (USD) investors (USD) Chartered Capital of Vietnamese investors (USD) 1953.949.395.766 3.313.110.760 3.120.464.565 Cambodia 871.938.274.420 1.864.332.156 1.864.332.156 Venezuela 212.434.400.0001.825.120.000 1.241.120.000 Russia Malaysia 6811.522.740 411.823.844 411.823.844 Mozambique 1493.790.000 345.653.000 345.653.000 USA 73308.323.570 251.391.570 250.891.570 Algeria 1562.400.000 224.960.000 224.960.000 Cuba 2125.460.000 125.460.000 125.460.000 1117.360.000 117.360.000 117.360.000 10 Madagascar 161.594.947.407 776.873.090 776.873.090 Notes: Arranged according to the contributed capital of Vietnamese companies Source: The Bureau of Foreign Investment, The Ministry of Planning and Investment As of the end of 2010, the country attracted the most FDI from Vietnam is Laos with 195 projects worth nearly billion USD, followed by Cambodia and Venezuela (See Table 3) However, according to the recent trends, Cambodia is emerging as the No candidate in attracting the attention of Vietnamese companies when in 2010, the two countries had signed a business cooperation agreement worth up to billion USD 7 SWOT Analysis of oversea FDI investment For Vietnam, the SWOT factors of oversea FDI investment are as followed: a Strengths - Vietnam has good traditional relations with neighboring countries including Laos, Cambodia: As indicated above, Laos and Cambodia are two countries attracted the most FDI from Vietnam (accounting for approximately 60% of the total investment capital) Having a good relationship at the national level is a significant advantage for Vietnamese companies in taking advantage of preferential policies of the government, relationships with business partners in the invested country, which can eventually lead to the advantage in competing with companies from other countries - Close geographic distance between Vietnam and Laos, Cambodia: countries of Vietnam - Laos - Cambodia are neighboring nations, sharing the border Flight time from the economic, political, cultural center of one country to those of the other takes up only one hour; in addition, within the framework of development cooperation in infrastructure, many cross-country roads has been opened This is a great advantage to Vietnamese investors since they will save significant cost and time; - Vietnamese companies are flexible and have the appropriate working culture with the context of developing countries b Weaknesses - The capacity of the state capital and of Vietnamese companies is still limited: Vietnam is still a developing country with GDP just over 100 billion USD, belongs to the small group in the world; Vietnamese companies are mainly medium and small in size This makes it difficult to invest in large projects which require much capital - Vietnamese companies still lack management skills and have low level of technology leading to limitation in investing in areas requiring high technology; - Vietnamese companies haven’t been able to establish professional working methods and culture In the first phase, "flexibility" can be suitable to the the business environment in developing countries (the main focus of Vietnam), but in the long run, this will affect the opportunities for sustainable development; - The efficiency of investment projects is still low, according to estimates, oil and gas sector is the most invested in with the greatest amount of 1.03 billion USD, but profits obtained only reached 38, million USD c Opportunities - The expansion of FDI investment abroad will help Vietnam to expand the influence of the nation, serving to achieve large, integrated, long-term targets Once Vietnamese enterprises become important factors in the economy, the relationship will not only stop at the extent of economic interests but also in terms of politics, culture and society - The neighboring countries such as Laos, Cambodia, and Myanmar have underdeveloped economy and production and haven’t fully integrated into the world economy; therefore, the policies to attract FDI, especially from trusted partners such as Vietnam, are wide open and favorable - We have had a legal framework of a cooperation agreement to develop of the Mekong sub-region from 1992 (inclusive of many areas such as transportation, telecommunications, tourism, agriculture, human resource development ) under the auspices of the Asian Development Bank (ADB) Vietnam can take advantage of these opportunities to strengthen cooperation, especially with less developed countries such as Laos, Cambodia, Myanmar to expand investment opportunities; - Investing to oversea will help Vietnam expand its consumer market Simply, if a business, instead of just operate in Vietnam, decides to invest in Laos, Cambodia and Myanmar, that enterprise will have direct access to a market area with approximately 200 million people (instead of Vietnam's 90 million) - Investing to oversea will be the driving force for companies to explore, develop and perfect themselves in order to adapt with the new business environment, with larger scale and more complex operations, to better compete d Threats - Large countries (especially China and Thailand) have started to notice and compete at the nations having traditional relations with Vietnam such as Laos, Cambodia According to MPI (the Ministry of Planning and Investment), Vietnam’s leading position on foreign investment in Laos is gradually being taken over by investors from China and Thailand Accumulated until 2005, Vietnam led the investment into Laos; but in 2006, Vietnam had given this position to China; and in 2007, Vietnam even ranked third behind Thailand - Due to the fact that the average development level is low and the investment environment in neighboring countries is limited in many aspects in terms of infrastructure, qualified labor, regulatory environment, work culture , this has caused many difficulties for Vietnamese companies - Some countries in which Vietnam have plan to prioritize FDI investment (such as Cambodia, Mayanma, Venzuela) have unstable political context Oversea FDI Investment Analyses To Vietnam, oversea FDI investment has advantages and disadvantages as followed: a Advantages: - In the context of international economic integration, oversea FDI investment is the inevitable and objective trend FDI flows from developing countries are now no longer a new phenomenon In fact, capital flows from these countries are occupying more and more in the total FDI of the world Amount of net outward investment from these countries increased from about 14 billion USD in 1990 to around 150 billion USD in 2000 (estimated from UNCTARD-2006) and reached about 210 billion USD in 2010, accounting for 18% of global FDI (Yukut Dilek 2011) In many countries, the government has officially declared that outward investment promotion is a priority in its policies In Singapore, the government has imposed a series of measures to strengthen the process of internationalization of state enterprises and private enterprises of the country; China has adopted a global strategy to promote outward investment; the prime minister of India said that the government encourages domestic companies to operate around the globe, and in 2003 the Brazilian government has set a goal "to have 10 real transnational companies at the end of President Lula’s tenure" - Oversea investment will help to optimize the capital due to being able to take advantage of the comparative advantage of the nations; make the most of the advantages of the companies (brand, level of science and technology) - Promote the role and influence of the country (as analyzed above) - Become the motivation of domestic firms having FDI investment overseas (as analyzed above), gradually promote its value in the world value chain - Helping companies expand markets, reduce risks of market fluctuations; b Disadvantages: - The Government is implementing the process of industrialization and modernization of the country by taking opportunities, taking a shortcut to strive to basically become an industrialized country in 2020 Therefore, in the situation where government’s capital is still limited and we still lack a lot of capital to implement domestic projects, with that, it’s easy to understand that it’s limited to invest oversea using state’s capital - Direct investment abroad is often implemented through investment projects requiring large capital, higher cost compared to domestic investment; the investment must be made from scratch with costs incurred in operation process (hiring costs, training of labor, raw materials market can not be fully exploited due to the economic – political factors ) - Investing abroad is accompanied by a shift of capital to oversea Since it takes a long time from the construction and implementation of projects to operation, it will create pressure in terms of capital for companies because it won’t have enough revenues to offset the lack of capital or if the company wants to expand the production and business activities - While the investment capital to implement projects is taken mainly from the company's own capital, high interest rate of credit institutions will reduce the efficiency of investment Additionally, it’s very difficult and limited to access preferential loans of the government, the implementation of investment is mainly carried out by state enterprises since they have large amount of own capital Although there are both advantages and disadvantages, it can be said Vietnam should continue to encourage overseas FDI investment, the concern about the "loss" of foreign exchange in the domestic foreign exchange market sometimes becomes more intense due to short supplies; the fact of failed Vietnamese companies with poor competitive capability will gradually be resolved in the long run by utilizing the competitive advantage, efficient use of capital; the current small level of profit/sales returned to the country, according to international experience, will generally increase sharply in the long term once the business starts to operate effectively Besides, the advantages leading to higher national status, the maturity of the business will bring unmeasurable value According to the Bureau of Foreign Investment, the trend of oversea investment of Vietnamese companies will continue to boom during the next few years with an estimated average amount of capital increased each year up to 500 million USD In which, the government’s economic groups such as Petrolium, Coal - Mining, Viettel, EVN, the Bank for Investment and Development, Song Da Corporation will remain the main channels to lead Vietnamese capital flows integrate into the world Suggestions a For the Government - Develop policy tools to promote investment abroad: The country should have the incentives to reduce the cost of oversea investment projects, including preferential loans, capital sharing, credit export and tax stimulation measures; - Establish organizations in promoting direct investment abroad to support the companies in different areas from economic to legal and cultural - Reduce potential risks related to FDI abroad Outward investment can have negative effects on employment and technology of the investing nation (due to the shift in production, technology transfer (research and development) and labors abroad) and cause the problem for international payment balance of that country The projected impact depends on the motivation of foreign investment, the conditions in the domestic economy and the relative positions of the investing country’s industry areas in global value chains Therefore, the state should have the specific policies for the group which is affected negatively through education, skills training, as well as programs to encourage the development of small and medium sized businesses, support the domestic industry manufacturing parts and accessories for export, active in attracting FDI inflows, especially with the hightech industry… - Participate in the international treaties to increase investment between developing countries and transitioning nations Participating in Bilateral Investment, in the Treaty of Avoiding double taxation, international investment agreements to encourage experience sharing among organizations that can provide financial support for trade and investment in South – South, protect the companies of developed countries against political risks, such as discrimination, stealing and restrictions in transferring, while at the same time help developing countries attract more FDI b For the companies - Develop professional and appropriate FDI investment strategies; searching for the “suitable” in each phrase To appear in difficult and picky markets such as Japan or the United States is a highlight proving the confidence and maturity of Vietnamese enterprises; but the market of developing countries in Asia, Africa and Latin America are the real new strategic business destinations for Vietnam Accordingly, in addition to the countries that we have already established and reaffirmed the position, there are other potential markets with good relations with Vietnam such as Laos, Cambodia, Myanmar, Mongolia, the Central Asian former Soviet Union, the Caribbean country or the West and Central Africa which also are in need of capital flows from Vietnam - Continuously improve management capability, improve the levels of science and technology, research and invest in development to improve the company's internal resources, creating attractiveness to the invested, compete well with other countries III Conclusions It can be said that for a developing country like Vietnam, to fully assess the advantages and disadvantages of oversea FDI investment so that we can get appropriate direction is extremely important In the context of international economic integration in the world today, in general, it’s an inevitable trend for a country to both attract FDI from outside and invest FDI to outside in order to promote efficient use of its competitive advantages In addition to economic benefits, oversea FDI investment also bring immesurable values such as political relations, the influence of the nation With that, the question of Vietnam in the coming years is to develop an overall strategy, set out the suitable policies and measures to improve the effectiveness of FDI abroad, ensuring the sustainability  ... enterprises located in a different economy The purpose of the direct investor is to have more influence in terms of management over the enterprise located in other economy The 1987 Law on Foreign... different economic forces Investment areas which Vietnamese companies are most interested in 10 INVESTMENT AREAS WHICH VIETNAMESE COMPANIES ARE MOST INTERESTED IN (Only including the valid projects)... explore, develop and perfect themselves in order to adapt with the new business environment, with larger scale and more complex operations, to better compete d Threats - Large countries (especially