Summary of Doctoral thesis: The impact of foreign investment on economic security in Vietnam

The thesis examines and assesses the positive and negative impacts of foreign investment on economic security, points out the causes and contradictions that need to be addressed from the status of the impact of foreign investment. to economic security in Vietnam. Proposing views and solutions to promote positive impacts, limit negative impacts of foreign investment on economic security in Vietnam in the near future.

1 INTRODUCTION 1. Rationale for the study In   1987,   the   National   Assembly   promulgated   the   Law   on  Foreign Investment in Vietnam, effective from January 1, 1988. Over  the  past  30  years,  attracting  and  using FI  in  Vietnam,  on  the  one  hand,   FI   has   made   important   contributions   to   the   socio­economic  development,   contributing   to   the   improvement   of   the   market  economy   institution,   improving   business   investment   environment,  developing foreign relations, co­operation, international integration,  ensuring national security and enhancing our country's reputation and  position in the international arena. The reality of the past 30 years  also shows that FI has always played a role as one of the important  components,   a   driving   force   in   the   development   of   the   economy  towards industrialization and modernization. With US $ 184 billion  out of a total of US $ 334 billion disbursed in 30 years, FI has added  an   important   capital   source   to   the   total   social   investment   capital  contributing to the formation of some key industries of the economy  such as oil and gas, telecommunications, electricity, electronics  ; FI  contributes to the development of many high quality services such as  finance ­ banking, insurance, auditing, legal consultancy, shipping,  logistics,   education   ­   training,   health,   tourism   ;   transferring  agricultural   structure,   improving   the   value   of   export   agricultural  products, expanding export markets, promoting the transformation of  export commodity structure and gradually bringing Vietnam to join  production networks and global value chains. On the other hand, FI  in   Vietnam   has   also   caused   certain   adverse   impacts   on   socio­ economy in general and economic security in particular. First of all,  the   spreading   effect   of   the   linkage   between   the   foreign   invested  sector and the domestic sector is still limited, the productivity is not  high and there are signs of encroachment. Technology transfer has  not   achieved   the   expected   results   The   investment   proportion   of  transnational corporations (TNCs) is still low; Investments from the  United States and the EU into Vietnam are not commensurate with  the   potential   Some   foreign   investment   projects  have   not   strictly  complied with the provisions of the law on environmental protection.  There is still a situation where foreign­invested enterprises use old  generation machines and equipment which are not suitable and cause  environmental pollution. In particular, there have been a number of  projects   causing   serious   environmental   pollution   Some   foreign­ invested enterprises violate the law, declaring false losses and true  profits,   seeking   ways   to   transfer   prices   regularly   and   very  sophisticatedly   to   avoid   taxes,   causing   great   losses   to   the   state  budget. In fact, many Vietnamese enterprises have to withdraw from  joint   ventures,   enterprises   to   become   100%   foreign   capital   The  dispute   of   labour   contracts,   benefits   leading   to   the   situation   that  strikes in foreign invested enterprises tend to increase, causing social  instability   In some cases, the attraction of foreign investors has not  been  fully  calculated,   all   elements   related  to  national   defense   and  security have not been thoroughly considered In   the   open   trend   of   integration,   attracting   foreign  investment,   the   special   attention   of   the   countries   to   the   economic  benefits and national economic security makes the issue of economic  security become an important factor, having an important impact not  only   on   the   NS   but   also   on   regional   and   international   security.  Meanwhile,   the   awareness   about   the   threats   of   national   economic  security due to the impact of foreign investment in Vietnam is still  inadequate and has not kept up with the rapid development of the  situation,   especially   the  issues   of   Finance   Security,   Food   Security  and Energy Security. We still have gaps in the strategy of attracting  and   using   foreign   investment   in   state   management   and   national  security ensure in general and economic security in particular Theories   and   practices   of   the   impact   of   FI   on   countries  receiving investment in many fields, especially economic security,  have  attracted  the   research  interest   of   many   scientists   in   different  angles, different areas and achieved certain results. However, until  now,   there   has   not   been   any   research   project   that   fully   and  systematically   studies   the   impact   of   FI   on   economic   security   in  Vietnam from the perspective of political and economic science, the  requirement is to continue to clarify the theory and practice of the  above issue, thereby propose points of view and solutions to promote  positive impacts, limit negative impacts of FI on economic security  in Vietnam. In that sense, the author chooses the topic "The impact of  foreign   investment   on   economic   security   in   Vietnam"   as   his  economics doctoral thesis, majoring in political economy 2. Purposes and tasks of the thesis * Purposes:  Clarifying practical and theoretical basis of the impact of  FI on ES in Vietnam by assessing the current situation, proposing  viewpoints and solutions to promoting positive effects and limiting  the negative ones of FI on ES in Vietnam in the time to come * Tasks: Giving an overview of research situation related to the thesis Building theoretical foundations about the impact of FI on ES;  indicating the concepts, contents of the impact of FI on ES in Vietnam Investigating, assessing the current situation of negative and positive  effects of FI on ES, pointing the causes and issues need dealing with from the  current situation of impact of FI on ES in Vietnam Proposing viewpoints and solutions to promoting positive effects and  limiting the negative ones of FI on ES in Vietnam in the time to come 3. Object and scope of the thesis * Object of the thesis: The impact of FI on ES * Scope of the thesis: In terms of content: The study focuses on the impacts of FI  on ES including financial security, food security and energy security In terms of space: In the territory of Vietnam In terms of time: Data obtained from 2011 to 2018 4. Theoretical, practical basis and methodology * Theoretical basis: The thesis is based on the viewpoint of  Marxism­Leninism,   Ho   Chi   Minh's   thoughts   on   capitalist   export,  foreign economic development and ES in the market economy with  the state management *   Practical   basis:  The   thesis   is   conducted   by   making  surveys,   analysing,   assessing   and   sintering   the   actual   situation   of  different cities and provinces in the country dealing with the impact of  FI   on   ES   in   recent   years;   consulting   the   data   and   findings   of   the  foreign and domestic researches published previously; reports of the  Government,   instructions   and   directives   of   different   branches,  Ministries and People’s Committees in the country related to the study * Methodology:  The thesis uses the methodology of dialectical  materialism   and   historical   materialism,   combined   with   the   use   of  methods of analysis and synthesis; history and logic; generalization  and   abstraction;   sociological   investigation   methods   to   fulfil   the  purposes and tasks of the dissertation 5. New contributions of the thesis  The thesis builds up its own concept and interprets different  contents and influential factors of FI on ES in Vietnam The analyses and assesses the current situation of positive and  negative impact of FI on ES in Vietnam in the 2011 ­ 2018 period,  identifying the causes and five urgent issues need addressing regarding  to the impact of FI on ES in Vietnam Base on the practical and theoretical basis, the causes and  rising issues, the study proposes four viewpoints and five solutions to  promoting the positive effects and limiting negative ones of FI on ES  in Vietnam in the time to come 6. Theoretical and practical significance of the thesis  The   thesis   contributes   to   clarify  some   practical   and  theoretical basis about the impact of FI on ES in Vietnam. The findings  of the thesis serve as practical and theoretical basis for references for  different departments in giving directions to attract FI and ensure ES in  Vietnam   today.  The   dissertation   it   can   be   used   as   references  researching and teaching related to the impact of FI on ES in Vietnam 7. Structure of the thesis  The   thesis   includes:   Introduction,     chapters   (9   periods),  Conclusions,   list   of   scientific   works   of   the   author   related   to   the  dissertation, list of references and Appendices Chapter 1 OVERVIEW OF THE THESIS­RELATED RESEARCH  SITUATION 1.1. The foreign works related to the thesis 1.1.1. The works on security and economic security “The   link   between   economics,   stability   and   security   in   a   transforming economy” by Katarzyna Zukrowska (1999); Report of a  workshop   organized   by   the   Institute   of   Defence   and  Strategic  Studies   (IDSS)  (2003),  “Globalization   and   Economic   Security   in   East Asia ­ Governance and Institutions;  “Economic security in an   era of globalization: definition and provision” by Miles Kahler (2004);  “Some   Opinions   on   the   Relation   between  Security   Economy   and   Economic Security”  by Valeriu Ioan ­ Franc (2010);  “Globalization,  security, and economic well­being” by Stephen M.Carmel (2013) 1.1.2. The works on international trade, foreign investment   and impacts of security on foreign investment “Analysing the impact of foreign direct investment on the   development of domestic firms” by Salvador Barrios, Holger Gorg,  Eric Albert Strobl (2004);  “Foreign direct investment in Africa: The   role of natural resources, market size, government policy, intuitions and   political   instability”  by   Asiedu   (2006);  “The   Interplay   between   Foreign Direct Investment, Security and European Integration: The   Case of the Central and Eastern European Countries”  by  Carmen  Raluca Stoian  &  Roger Vickerman (2005);  “The  Impact of Inward   FDI   on   Host   Countries:   Why   Such   Different   Answers”  by  Robert  E.Lipsey and Fredrik Sjoholm (2006); “Foreign Direct Investment in  Developing Countries: Impact on Distribution and Employment”  by  Faramarz   AKARAM   (2008);  “FDI   and   Economic   Growth   in   Malaysia”  by   Mohammad   Sharif   Karimi   and   Zulkornain   Yusop  (March   2009);  “Non­equity   Modes   Of   International   Production   And   Development”  by  World   Investment   Report   (2011);  “International  Trade,   Foreign  Direct   Investment,   and  Security”  by  Avinash  Dixit  (2011); The Impact of National Security on Foreign Direct Investment   in   Nigeria:   An   Empirical   Analysis”  by  Dickson   Oriakhi   Presley  Osemwengie   (2012);  Foreign Investment, the National Interest and   National Security ­ Foreign Direct Investment in Australia and China”  by   Viviane   Bath   (March   2012);  “Why   Do   Companies   Invest   Overseas?” by John Dunning (2014) 1.2. The domestic works related to the thesis 1.2.1. The works on foreign investment “Foreign direct investment in the key economic areas in the   South   ­   issues   for   security   work”  by   Đinh   Văn   Hồng   (2002);  “Foreign direct investment with industrialization and modernization   in   Vietnam”  by   Nguyễn   Trọng   Xuân   (2002);  “Foreign   direct   investment in Vietnam ­ Current situation and solutions” by Trần  Xuân   Tùng   (2005);  “Socio­economic   issues   arising   in   foreign   direct investment: Chinese experience and reality in Vietnam”   by  Đỗ Đức Bình, Nguyễn Thường Lạng (2006),  Nguyễn Thị Tuệ Anh  (2006); “The impacts of foreign direct investment on economic growth   in  Vietnam”  by  Nguyễn  Thị   Tuệ   Anh   (2006);  “Strikes   in   foreign   invested companies ­ Issues for the work of security and order” by  Nguyễn   Mạnh   Thắng   (2008);  “Foreign   direct   investment   in   the   direction of sustainable development in the key economic areas in   the north”  by  Trần Tuyết Lan  (2014);  “Impacts of foreign  direct  and indirect investment on ASEAN economics” by Nguyễn Trung  Thông (2016); “30  years of attracting foreign investment in Vietnam,  insight and new opportunity in the new era” by Ministry of Planning  and Investment (2018) 1.2.2.  The works  on economic  security,  national  security   protection “Strengthening the State management on national security in   our country today” by Trần Đại Quang (1996);“Reality and solutions  for economic security protection in FDI in Hung Yen province” by Bùi  Mậu Quân  (2001 ­ 2002);  “Violation of national security in FDI ­   current   situation   and   solutions   of   Institutions   of   Security”  by   Bùi  Trung Thành (2001);  “Economic security protection in the current period   in our country today ­ theoretical and practical issues” by Bùi Trung Thành  (2002);   “Security in foreign investment in Ho Chi Minh city and some   Southern provinces”  by  Trần Kim Ngọc (2003) and  “Nguyễn Xuân  Thắng  (2006);  “Different   levels   of   development   and   economic   security   in  ASEAN”  by  Nguyễn   Văn   Dũng   (2007);“FDI   in   the   border provinces in the North ­ Rising issues for ensuring security   and order” by Nguyễn Thường Lạng (2008); “Security in foreign   investment   in   Vietnam   in   the   international   integration   era”   by  Nguyễn Xuân Yêm (2008); “economic security in the integration era  and WTO” by  Nguyễn Hồng Hải (2010);  “The work of protecting   economic security for Vietnam’s import­export with America” by Đỗ  Ngọc   Quang   (2011);   “Some   challenges   for   national   security   in  the   international   integration   era”  by    Nguyễn   Thị   Kim   Hồng   and  Nguyễn Thị Bé Ba (2011);“Food security in the Mekong Delta River”   by Phạm Ngọc Hiền, Nguyễn Văn Lan;  “International economic   integration   ­   rising  issues   for   the   Police   work”  by  Nguyễn  Văn  Việt, Lê Thị Quỳnh (2011);  “Ensuring environment security for the   country’s   sustainable   development   in   the   new   situation”  by  Trần  Minh   Tơn   (2014);  “Ensuring   security   for   the   industrial   areas   in   Hanoi   city”  by  Lê   Minh   Thảo   (2014);  “The   work   of   ensuring   argicultural economic security ­ practical and theoretical issues” by  Nguyễn Ngọc Thế (2014); “Monetary financial security in Vietnam   in the changes of the world financial market”  by  Nguyễn Thị  Mùi  (2015);  “Non­traditional   security   in   the   international   integration   time”  by   Tô   Lâm,   Nguyễn   Xuân   Yêm   (2017);  “Non­traditional  security ­ practical and theoretical issues” by Tạ Ngọc Tấn, Phạm  Thành Dung, Đoàn Minh Huấn (2018) 1.2.3. The works on the impacts of foreign investment  “Foreign sponsor and investment in Tay Nguyen and their rising   issues on security” by Trần Xuân Dung (2006), “Rising socio­economic   issues   in   foreign   direct   investment   of   some   Asian   countries   and   solutions   for   Vietnam”  by  Trần   Quang  Thắng   (2012),  “Anti­prize  transforming and some financial issues related to FDI” by Vũ Đình  Ánh (2012),  “Negative impacts of FDI and some rising issues for   economic security in our country today” by Phạm Văn Thừa (2013),  “Global   financial   crisis:   the   world   and   Vietnam’s   response”  by  Nguyễn Thị Thu Hoài (2014) 1.3. Overview of the findings of the published scientific  works and issues need addressing in the thesis 1.3.1. Overview of the findings of the published scientific   works related to the thesis The   above   mentioned   works   show   that   the   foreign   and  domestic authors have touched upon a variety of aspects of FI, ES  and impacts of FI on ES Firstly:  These   works   present   the   concepts   and   categories   of  economy   and   ES   However,   the   concepts,   categories,   relations   and  impacts of ES are only in general in the region and in the world. Security  and ES in the global world and its impacts should be specialized in each  aspect and each country. These works help this thesis’s author better  understand the names and relations between economy and ES Secondly: Some works touch upon impacts of ES on attracting  FI   and   the   role   of   the   Government   in   maintaining   the   security  stability to promoting FI. However, these works only show the policy  to   attract   investment   or   compare   interests;   only   few   works  specifically mention the negative effects of FI on ES.   Thirdly, these works point out rising issues in FDI in terms of  human resources, economy and society. Some present the fact that  FDI in the north and some key provinces in the South contributes to  the sustainable development and security insurance. However, there  have been no works touching upon the impacts of FI on ES Fourthly:  Some   works   give   an   analysis   on   security   in  integration   and   FI   and   point   out   impacts   of   FI   in   Vietnam   and  challenges   of   national   security   in   the   integration   process   These  authors   also   propose   solutions   to   ensuring   ES   in   socio­economic  development. Some works state the reality; solutions to the protection  of   ES  in  FDI   and  the  cities   and  provinces’   industrial   areas,   other  works mention the sabotage of ES made by the hostile forces in the  name   of   FDI   Some   works   add,   complete   the   theory   of   security,  security   protection   and   give   advisory   for   leaders   to   manage   the  investment activity. Some other works analyse systems of specialized  theory on ES protection and propose solutions to promoting the task  of ensuring ES of the police in terms of FI. The point that interests  this thesis’s writer is the negative and positive effects of FI on ES in  different regions in the whole country. Therefore, both negative and  positive factors of FI affecting ES should be taken into consideration.  Fifthly, these works touch upon negative impacts of FDI on  socio­economic   problems   and   ES   These   impacts   are   shown   in   the  security sabotage by investment and sponsorship So far, there have no works thoroughly and systematically  researching on negative and positive effects of FI on ES in Vietnam.  Thus,   “Impacts   of   FI   on   ES   in   Vietnam”   needs   systematically  researching both theory and practice and specialized knowledge of  ES   in   the  integration   period   to   promote  positive   effects   and   limit  negative effects of FI on ES in Vietnam in the time to come 1.3.2. Issues need further addressing in the thesis From the above overview of the published works overseas  and in the country, the thesis’s author finds out some scientific gaps in  the impacts of FI on ES in Vietnam. Firstly, what are FI and ES? What  is  the conception  of  FI  on ES  in Vietnam?  What  are  its  contents?  Secondly, the reality of negative and positive effects of FI on ES in  Vietnam? The causes and issues need dealing with in the coming time?  Thirdly, which solutions and views should be conducted to promote  positive effects and limit negative ones of Fi on ES in Vietnam? In order to answer the above questions, the thesis interprets and  clarifies the following issues: Firstly, building the theoretical frame on FI,  ES and impacts of FI on ES in Vietnam; Secondly, making surveys and  assessing objectively the current situation of  impacts of FI on ES in  Vietnam, indicating the causes and issues need addressing in the coming  time;  Thirdly,   proposing   systems   of   views   and   solutions   to   promote  positive effects and limit negative effects of FI on ES in Vietnam in the  time to come Summary of Chapter 1 Chapter 1 gives an overview of 16 works by foreign authors;  33   works   by   domestic   researchers   in   such   different   types   as  textbooks,   doctoral   dissertation   and   articles   Accordingly,   this  thesis’s   author   generalizes   achievements   and   shortcomings   of   the  above works and points out issues need dealing with in this study Chapter 2 THEORETICAL BACKGROUND TO THE IMPACT OF  FOREIGN INVESTMENT ON ECONOMIC SECURITY IN  VIET NAM  2.1. Overview of foreign investment and economic security  2.1.1. Conception, forms and roles of foreign investment  2.1.1.1. Conception of foreign investment With the 2014 Investment Law, there are a lot of new points about  FI in Vietnam. Under this law, the forms of investment in Vietnam are  generally applied to investors (under Section 13, Article 3 of the 2014  Investment Law, “Investors are organizations and individuals performing  the activities of business investment, including domestic investors, foreign  investors and foreign­invested economic organizations” 2.1.1.2. Forms of investment: The 2014 Investment Law clearly  stipulates investment forms in Vietnam. Accordingly, there are 4 forms  of   investment   as   follows:   Investment   in   establishing   economic  10 organizations; investment in the form of capital contribution, purchase of  shares or capital contributions to economic organizations; investment  contracts   in   the   form   of   public­private   partnerships   (PPP   contracts);  business cooperation contract (BCC contract) 2.1.1.3. Roles of foreign investment  1)  Add an important  source of  capital  to  the  development  investment in the country, solving difficulties in internal capital for  investment countries; 2) Contribute to changing the structure of the  economy towards industrial development and potential exploitation;  3)   Promote  the  transformation  of   technology,   technique,   advanced  and modern management  methods directly and quickly,  creating a  premise   for   technological   innovation   and   promoting   domestic  capacity and development goals; 4) Create conditions for countries  receiving   investment   to   access   to   the   world   market,   explore   and  promote the advantages of their own and times’, help participate and  compete internationally; 5) Create more jobs for domestic workers on  the basis of developing new industries or general services; 6) Help  countries   receiving   investment   participate   in   various   international  and regional forums, creating advantages of bilateral and multilateral  relations both economically and politically, step by step improving  position in the international arena 2.1.2. Economic security 2.1.2.1. Conception of Economic Security  From the above analytical study, the author argues that: ES is a   part of national security, the state of an economic with a stable   development, with little or no risk of threats to the nation's core   economic interests, able to effectively prevent and deal with the   effects   of   domestic   and   international   factors;   ES   includes   finance security, energy security and food security National ES is the state of a stable development economy ­ a  self­control economy having ability to compete internationally in the  key manufacturing industries. The economy has little or no risk of  threatening the nation's core economic interests; the economy has the  ability to effectively prevent and deal with the effects of domestic  and international factors The contents of ES include: finance security, energy security and  12 on host countries in both positive and negative aspects 2.2.2   Contents   of   the   impact   of   foreign   investment   on   economic security in Vietnam  2.2.2.1. Impacts of foreign investment on finance security in Vietnam  * Positive impacts of foreign investment on finance security  Firstly,   developing   and   stabilizing   domestic   finance   security;  secondly, increasing the total indirect investment of society; thirdly, positively  affecting the development of the financial market in particular, the completion  of the institutions and market mechanisms in general  Fourthly, enhancing  opportunities and diversifying investment methods, improving the quality of  human resources and income of many people. Fifthly, the impact as a boost to  improve the capacity and efficiency of the state management according to the  principles and requirements of market economy and international integration * Negative impacts of foreign investment on finance security Firstly,  multinational companies (TNCs) can intervene and  manipulate the market economy, affecting financial autonomy Secondly, the proportion of foreign investment is too large,  overwhelming domestic investment; currency speculation activities,  sudden capital withdrawal leading to a market dependent economy Thirdly,   foreign   investment   is   very   limited   in   transferring  new technologies that are highly competitive Fourthly, creating inflation impetus in the economy Fifthly,  increasing   the   level   of   sensitivity   and   economic  instability related to foreign factors Sixthly, increasing the risk of acquiring, merging, controlling  and manipulating finance for enterprises and securities issuers Seventhly,   increasing   the   scale,   nature   and   urgency   of  fighting international economic crimes 2.2.2.2. Impacts of foreign investment on food security in Vietnam  * Positive impacts of FI on food security in Vietnam   Firstly, foreign investment contributes to the supplement of   capital for agricultural development investment Secondly,   increasing   the   opportunity   to   participate   in   the   world agricultural supply chain Thirdly:   Foreign  investment   creates   agricultural   economic   restructuring   towards   modernization   and   diversification   of   13 agricultural products to introduce to the market Fourth: Foreign investment improves the quality of human   resources and creates jobs in the agricultural and rural economy * Negative impacts of FI on food security in Vietnam  Firstly,   there   are   not   many   foreign   investment   projects   in  agriculture,   the   capital   is   low   and   they   are   unevenly   distributed   in   different fields affecting food supply Secondly, altering the structure of resources that are detrimental   to food security Thirdly, increasing competitive pressure on the domestic market Fourthly, the strong impact of "technical barriers" on businesses   and farmers ­ the supply of food security Fifthly, causing insecurity to the business environment and the   living environment of the population in the area of investment 2.2.2.3. Impacts of foreign investment on energy security   in Vietnam  *   Positive   impacts   of   foreign   investment   on   energy   security in Vietnam  Firstly,   affecting   energy   prices,   power   supply   and   energy   policy improvement in Vietnam Secondly,   shifting   the   agricultural   economy   using   energy   mainly based on traditional biomass fuels to the industrial economy   using synthetic and modern forms of energy * Negative impact of FI on energy security in Vietnam  Firstly, many risks in the national electricity supply Secondly, adverse impacts on energy resource management   and energy price mechanism Summary of chapter 2 In chapter 2, the author has developed a theoretical framework.  This is an important basis for the researcher to continue studying the  current   situation   of   attracting   foreign   investment   and   the   impact   of  foreign investment on economic security, thereby proposing the views  and solutions to promote the positive impacts and limit the negative  impacts of foreign investment on economic security in the coming time Chapter 3 CURRENT SITUATION OF THE IMPACT OF FOREIGN  14 INVESTMENT ON ECONOMIC SECURITY IN VIET NAM  3.1. Overview on foreign investment in Vietnam over the past time  The   thesis   has   summed   up   the   results   of   the   situation   of  attracting foreign investment up to 2018: After more than 30 years of  "welcoming" FDI, from 1988 to August 2018, 63 provinces and cities of  the country attracted 26,438 FDI projects of 129 countries and territories  which are still valid with a total registered capital of US $ 333.83 billion  and realized capital is estimated at US $ 183.62 billion, equal to 55% of  the total valid registered capital disbursed in 30 years, FI has added an  important capital source to the total social investment capital Through   the   overview   of   foreign   investment   in   Vietnam  over the past time, the researcher has come to assert that: In some  cases,   the   attraction   of   foreign   investment   has   not   been   fully  calculated, attracting investment by all means, leading to the risk of  imbalance, threatening the economic security such as: (i) the growth  rate is still low, the quality of growth is not really sustainable; (ii)   There  was   mainly   a  deficit   in   the   trade  balance   in   the   period  of  2001­2017; (iii) The state budget deficit tends to increase due to   low   efficiency   in   production   and   investment   This   is   one   of   the   factors that threaten the sustainability of economic security in the  current period 3.2   Current   situation  of   positive  and  negative   impacts   of  foreign investment on economic security in Vietnam  3.2.1. Impacts of foreign investment on finance security  * Positive impacts of foreign investment on finance security  Firstly,   foreign   investment   replenishes   capital,   increases   state budget revenue through taxes Based on an overview of the attraction of foreign investment  over  the past  30 years,  up  to  August  2018,  there  were  more  than  26,500   FDI   projects   with   the   registered   capital   of   more   than   334  billion USD, the realized capital of about 184 billion USD. Foreign  investors have contributed nearly 20% of GDP and are an important  additional source of capital for investment and development with a  proportion of about 23.7% of the total social investment capital. The  Ministry   of   Planning   and   Investment   also   said   that   FI   plays   an  important   role   in   boosting   the   economic   growth   of   Vietnam,   the  15 contribution of the foreign investment sector in the country's GDP  increased from 9.3 % in 1995 to 19.6% in 2017 Secondly,   FI   affected   Finance   Security   in   the   national   financial market   FI   is   fully   qualified   to   participate   in   developing   the  financial   market,   including   the   stock   market   In   2016,   the   stock  market   capitalization   reached   about   VND   2.53   million   billion  (reaching 56% of GDP in 2016), increasing 30% compared to the  end of 2016; for the bond market, outstanding loans are equivalent  to about 30.09% of GDP. In 2017, FII capital through investment   activities  to contribute capital,  bought  shares of foreign investors  amounted to 6.2 billion USD (up 45.1% compared to 2016). This  means   that   nearly   140,000   billion   dong   of   FII   capital   has   been  poured into Vietnam by foreign investors. FII inflows into Vietnam  is a good signal for both the economy, the stock market, insurance  and   arrangement,   innovation   and   equalization   of   state­owned  enterprises to continue to be synchronized * Negative impacts of foreign investment on finance security  Firstly,   foreign   investment   intervenes,   manipulates   the  market economy, destabilizing the national finance Fraudulent activities, money laundering activities, funding  activities for illegal businesses and terrorist activities together with  different types of crimes and other non­traditional security threats.  The resonance of criminal activities and the negative effects of the  above capital flows, especially when they occur in an "organized"  way of speculators or international political hostile forces, they will  harm healthy economic activity much or less; even in some cases,   they discredit the state, influence and indirectly interfere in politics,  making the government cabinet to collapse Secondly, too much foreign investment  will dominate and decide  domestic production activities Monetary speculation and sudden capital withdrawal led to the  market economy being easily dependent on the outside. The increase in  the percentage of  holding  shares  of  investment   in  manufacturing  and  financial   markets,   especially   establishment   stocks   and   shares   up   to   a  certain level of "surpassing" will allow them to directly dominate and  16 decide production activities Thirdly,  FI   in   Vietnam   is   often   old,   backward,   causing  environmental pollution and less transformation of new technologies According to Deputy Minister  of  Planning and Investment  Dao Quang Thu, statistics show that over 80% of FDI enterprises use  the world's average technology, 5­6% use high technology, 14% is  low and backward. Many cases of foreign investors take advantage of  the loopholes of law to import outdate machinery and equipment into  Vietnam, increase import value and value of technology transfer Fourthly,   FI   has   caused   psychological   instability   for  domestic investors.  Fifthly,   FI   has   made   the   domestic   stock   market   develop  unsustainably Sixthly,   economic   crimes   with   foreign   factors   have   been  increasing and more and more sophisticated and complicated 3.2.2. Impacts of FI on food security  * Positive impacts of FI on food security  Firstly, FI helps to accelerate capital flows in the world,   especially   FDI   inflows   into   Vietnam,   thereby   increasing   capital   investment in agriculture According to the Foreign Investment Agency (Ministry of  Planning and Investment), as of February 2018, total foreign direct  investment   (FDI)   in   agriculture   was   USD   350   million   with   514  projects   If   compared   with   the   accumulated   investment   in   the  Agriculture   sector,   this   capital   only   accounts   for   about   1%   This  capital is mainly from Japan Secondly,   FI   initially   contributes   to   the   restructuring   of   agricultural   economy   towards   modernization   and   diversification   of   agricultural products FDI projects have implemented the policy of agricultural and  forestry restructuring, product diversification. Up to now, there have been  more than 50 countries and territories investing in the field of agriculture,  forestry and fisheries of our country. The leading countries are: Korea,  Japan, Taiwan, Hong Kong, Malaysia. Japan is a major investor in this  field, so far, there have been projects successfully implemented in the  application of Japanese science and technology to Vietnam 17 Thirdly, meeting the demand for food and foodstuff in the country  Agriculture in our country has basically met the demand for  domestic   food   and   foodstuff,   ensuring   food   security,   has   formed  relatively large agricultural commodity production areas, the rate of  goods increased rapidly Fourthly, increasing the export value of Vietnamese agricultural products   Total   export   turnover   in   10   years   (2008­2017)   reached  261.28 billion USD, an average increase of 9.24% / year; In 2017  alone, it was 36.52 billion USD, increased by 20.05 billion compared  to 2008 and was expected to reach 40 billion USD in 2018. Vietnam's  agricultural   products   have   been   present   in   180   countries   and  territories. Vietnam's agricultural exports ranked the 2nd in Southeast  Asia and the 16th in the world Fourthly,   contributing   to   training   high   quality   staff   and  creating jobs for agricultural workers According to the statistics of the General Statistics Office, as  of July 1, 2008, labourers working in the foreign­invested economic  sector accounted for a total of 1831.4 thousand labourers, of which  the agricultural sector accounted for about 8.2% of employees * Negative impacts of foreign investment on food security  Firstly, it has not attracted big investors into agriculture, it   was unevenly distributed FI projects in agriculture mainly come from investors in Asia  with high technology that have not really been developed such as Thailand,  Taiwan, Indonesia   There are not many investors from countries with high  level of development in agriculture such as the US, Japan, EU    Secondly,   changing   jobs   and   income   of   workers,   creating   instability for sustainable development in agriculture The quality of life of food production people is not improved  and vulnerable. Currently, labourers living in rural areas account for  about 70% of the total labour force. Therefore, the lack of careful  calculation of foreign investment in the agricultural sector may affect  the employment of most rural workers Thirdly, low agricultural labour productivity increases the   competitive pressure on the domestic market Fourthly,   competitive   pressure,   quality   assurance   of   18 domestic agricultural producers in the international market.  Fifthly,   agricultural   land   is   narrowed   and   habitat   is   destroyed 3.2.3. Impacts of foreign investment on energy security  * Positive impacts of foreign investment on energy security  Firstly,   increasing   foreign   investment   in   clean   energy,   renewable   energy,   boosting   high­tech   usage,   low   energy   consumption,   and   improving   the   environment   to   ensure   national   energy security So far, 9 countries have invested in green energy FDI projects  including Korea, Germany, France, India, the United States, Singapore,  Russia, Belgium and China. Of these countries, the first is Korean with a  total registered investment capital of over US $ 371 million, accounting  for 48%; Germany ranked the second with a total registered investment  capital   of   226.68   million   USD,   accounting   for   29.3%   of   the   total  registered investment capital in the green energy sector. Followed by  French, Indian and US investors with total registered capital of 77.12  million USD; 59.22 million and 26 million USD respectively.  Secondly, FI affects the reasonable energy price mechanism   and the development of energy infrastructure in Vietnam * Negative impacts of foreign investment on energy security Firstly, the national electricity supply is not sustainable FI projects on electricity gas are often behind the schedule  (gas source Block B, Blue Whale gas source and new power source  projects), leading to a shortage of electricity from 7.2 to 7.5 billion  kWh / year. The power sources which have been started to be put into  operation   in   the   coming   time   are   very   low   compared   to   the  requirements, currently only 7 coal thermal projects with 7,860 MW  have been started and are under construction Secondly, energy management and energy price mechanism   are very precarious and unstable Vietnam has attracted 16 FDI projects in the green energy  sector. Countries investing in green energy projects are all developed  and   emerging   economies   such   as   Korea,   Germany,   France,   the  United   States,   Belgium   and   Singapore,   India,   Russia   and   China.  19 However, the number of FDI projects in the green energy sector is  not commensurate with the potential and strength of Vietnam 3.3. Causes of the situation and the issues that need to be addressed  in the impact of foreign investment on economic security in Vietnam  3.3.1. Causes of positive impacts of foreign investment on   economic security in Vietnam  Firstly,   the   objective   trend   of   international   economic   integration   increases   foreign   investment   and   ensures   economic   benefits and security of nations Secondly, the economic and binding cooperation among the   countries   in   the   development   process   facilitates   the   attraction   of   foreign investment and the beneficial impact of foreign investment on   economic development, and economic security Thirdly, the product cycle, the transfer and exploitation of   technology   and   experts   and   the   access   to   natural   resources   are   encouraging foreign investment promoting positive impacts, ensuring   investors’ benefits and the investment recipients’ benefits Fourthly, the relationship between domestic enterprises and foreign   enterprises has certain openness ensuring the interests of the parties Fifthly,   the   State   guarantees   policies   and   laws   for   foreign   investment           Sixthly, the capacity of domestic enterprises to join the supply   chain for foreign invested enterprises is gradually affirmed Seventhly,   initially   promoting   the   role   of   agencies,   departments, local authorities and organizations in enterprises in   foreign investment activities, ensuring Economic Security on the   impact of foreign investment 3.3.2. Causes of negative impacts of foreign investment on   economic security in Vietnam  Firstly, impact the reverse of globalization Secondly,   the   world   economy   has   fluctuated   and   caused   indirect   instability   for   Vietnam's   economy,   FII   directly   affected   20 Vietnam's financial security Thirdly,   global   issues   are   complicated   and   unpredictable,   leading   to   more   complicated   foreign   investment,   causing   national   security instability Fourthly,   some   of   the   foreign   investors   because   of   maximizing   profit   and   surplus   value   have   defied   all,   taking   advantage of foreign investment to against us in economics Fifthly,   it   is   the   lack   of   synchronization   of   mechanisms,   policies, laws and documents regulating foreign investment Sixthly, a part of cadres and people are aware of and act on   laws   and   the   threat   of   national   security   in   foreign   investment   activities insufficiently 3.3.3   Issues   arising   from   the   real   impact   of   foreign   investment on economic security in Vietnam Firstly,   the  conflict   between  imbalance   in  attracting  foreign   investment with dynamism and flexibility in investment promotion and   foreign investment management Secondly, the contradiction between the requirement to improve  the   efficiency   of   foreign   investment   and   ensure   long­term   economic   security   with   the   unreasonable   strategy,   high   added   value   and   the   content of knowledge technology in foreign investment attraction Thirdly, the conflict between the need to overcome the negative   impacts of foreign investment and economic security with the internal   difficulties of the economy is slowly removed Fourthly, the conflict between attracting foreign investment by   all means with limitations in the strategy of using and managing foreign   investment effectively.  Summary of Chapter 3 In   chapter   3,   the   researcher   has   analysed   and   evaluated  achievements,   limitations   of   foreign   investment   attraction   and  assessed   the   impact   of   foreign   investment   on   Economic   Security,  pointed out the causes and problems posed to the impact of foreign  investment   on   Economic   Security   in   Vietnam   over   the   past   time;  Along with the research results in chapter 2, the research results in  21 chapter     will   be   the   basis   for   the   researcher   to   continue  implementing the content of chapter 4 of the thesis Chapter 4 VIEWPOINTS AND SOLUTIONS TO PROMOTE THE  POSITIVE IMPACTS, LIMITE THE NEGATIVE IMPACTS  OF FOREIGN INVESTMENT ON ECONOMIC SECURITY IN  VIETNAM IN THE COMING TIME 4.1   The   viewpoint   of   promoting   positive   impacts   and  limiting   negative   impacts   of   foreign   investment   on   economic  security in Vietnam in the coming time  4.1.1   Consistently   implementing   the   view   that   foreign   investment is an important part of the economy, economic security   plays the central role in national security Firstly,   the   right   perception   of   foreign   investors   must   encourage long­term development of foreign investment and create   the right direction Secondly, proper awareness of foreign investment position in   new conditions must implement foreign investment cooperation with   more extensive internal functions Thirdly, be aware of the position of Economic Security and solve   the relationship between foreign investment and Economic Security well 4.1.2. Attracting foreign investment must go hand in hand   with ensuring national, ethnic benefits and economic security  Firstly, consistently implementing the viewpoint of ensuring   national and ethnic interests in attracting foreign investment Secondly, properly orientating foreign investment activities,   ensuring economic security 4.1.3   Improving   the   efficiency   of   attracting   foreign   investment to minimize its negative impacts on socio­economic and   economic security Firstly, it is necessary to institutionalize the Party's lines and   views in this area with legal documents 22 Secondly, it is necessary to actively cooperate with foreign   investment   in   accordance   with   socio­economic   development   requirements and national economic security Thirdly,   it   is   necessary   to   intensify   monitoring   and   supervising foreign investment activities to limit its negative impacts   on social economy and economic security 4.1.4. Closely combining foreign investment attraction with   ensuring national defense and security Firstly, improving the role of participants in combining economy  with national defense and security in foreign investment activities Secondly, improving the role and management capacity of   the State in combining economy with national defense and security in   foreign investment activities Thirdly, continuing to create a legal basis to meet practical   requirements   of   combining   economy   with   national   defense   and   security in foreign investment activities Fourthly,   improving   the   effectiveness   of   coordination   of   participating forces in combining economy with national defense in   researching and forecasting foreign investment situation Fifthly,   it   must   be   conducted   regularly,   synchronously,   comprehensively and with a focus on activities to combine economy   with national defense in foreign investment activities 4.2. Solutions to promote positive impacts, limit negative  impacts of foreign investment on economic security in Vietnam in  the coming time 4.2.1. Heightening the role of the State in attracting foreign   investment with ensuring economic security  Firstly, maintaining socio­political stability Secondly, maintaining macroeconomic  stability, creating a   favourable environment for foreign investment activities Thirdly,   improving   the   legal   framework   related  to  foreign   investment and economic security 4.2.2. Capital restructuring, investment structured towards   improving foreign investment efficiency  Firstly,   restructuring   foreign   investment   capital   in   the   23 direction of having a focus Secondly,   implementing   investment   restructuring   of   the   foreign invested sector 4.2.3. Ensuring economic security in attracting foreign investment  Firstly,   it   is   necessary   to   innovate   the   thinking,   the   awareness of the role, the position in ensuring economic security in   the strategy of national security protection Secondly, it is required to ensure finance security Thirdly, it is required to ensure food security Fourthly, it is required to ensure energy security 4.2.4. Improving the quality of human resources to meet   the requirements in the area of foreign investment  Firstly, it is to strengthen combining businesses with training   institutions Secondly, it is to strengthen retraining central and local cadres   on knowledge and capacity to implement foreign investment policies,   ensuring economic security Thirdly, it is to raise the level of human resources to catch high   quality foreign investment projects  4.2.5   Closely   coordinating   forces   in   managing   foreign   investment activities and ensuring economic security  Firstly, it is necessary to comply with the program, plan and   determine the right coordinative forces Secondly, it is necessary to clearly define the content, form of   coordinative forces Thirdly, it is necessary to clearly identify the agency in charge   of coordinating activities of forces Fourthly,   the   Army   and   the   Police   actively   participate   in   coordinative activities 24 Summary of Chapter 4 From   theoretical   and   practical   research   on   the   impact   of  foreign investment on economic security, on the basis of assessing  the impact of foreign investment on economic security in Vietnam  over the past time, the fourth chapter of the thesis has studied and  proposed 4 viewpoints and 5 solutions to promote positive impacts  and   limit   negative   impacts   of   foreign   investment   on   economic  security in the coming time CONCLUSION   Economic   Security   in   attracting   foreign   investment   in  Vietnam   is   a   very   complex   issue,   it   contains   many   interwoven  relationships   which   are   diverse   and   at   many   levels,   requiring   clear  analysis and evaluation methods. This requires a deeper study of the  impact of foreign investment on economic security as well as the need to  demonstrate   appropriate   and   effective   long­term   viewpoints   and  solutions to promote positive impacts and limit negative impacts of FI in  national security in different stages of national economic development.  Therefore, studying the topic "foreign investment impact on economic  security in Vietnam" as a doctoral thesis topic is an important issue both  on the economic and political level 2. Foreign investment is a very complex economic activity. It  is   even   more   complicated   when   capitalists   invest   in   a   socialist  country   Therefore,   the   impact   of   foreign   investment   on   economic  security in Vietnam today needs to focus on many issues implemented  in   many   stages   and   steps   with   the   participation   of   many   subjects.  However, under the approach of the political economics department,  with   the   method   of   scientific   abstraction,   the   thesis   focuses   on  researching the impact of foreign investment on economic security in  Vietnam on three main contents: Positive impacts, negative impacts of  foreign  investment   on Finance Security;   Food Security  and  Energy  Security. Because these are the core basic contents that when deployed  and implemented well in the field of attracting foreign investment in  Vietnam today will have a decisive meaning to the quality, efficiency,  management of foreign capital for socio­economic development of the  25 country and ensuring economic security 3. The impact of foreign investment on economic security in  Vietnam is influenced by the many objective and subjective factors,  of which it is mainly due to: Economic developments in the country  and   in   the   world;   globalization   and   international   economic  integration;   policies   and   guidelines   of   the   Party,   socio­economic  development  strategy  of   the  country,   mechanisms  and  policies  for  attracting   foreign   investment   and   ensuring   economic   security;  awareness   and   responsibility   of   the   leadership   and   management  agencies of the Party, the State and the management apparatus in the  field of attracting and using foreign investment capital and ensuring  economic security. The precise identification of the impact factors is  very important in pointing out the causes, achievements, limitations  and at the same time is one of the bases for setting out the views and  solutions   to   promote   the   positive   impacts   and   limit   the   negative  impacts of foreign investment on economic security in Vietnam 4. In the coming time, attracting foreign investment in multi­ dimensional relationships, intertwining very complexly of the world  and   foreign   investors   entering   Vietnam   will   give   a   rise   to   a   new  series of comments such as: Finance Security becomes a focus of  Economic   Security;   Energy   Security   becomes   an   especially  important and sensitive issue in Economic Security, even affecting  the  political   and   military  security;   Food   Security   is   the   basic   and  long­term issue of Economic Security. From these assessments, the  thesis offers four views and five solutions to promote the positive  impacts   and   limit   the   negative   impacts   of   foreign   investment   on  Economic Security in Vietnam in the coming time   In   order   to   promote   the   process   of   attracting   foreign  investment effectively and ensuring Economic Security in Vietnam in  the   coming   time,   according   to   the   author,   along   with   thorough  understanding and raising awareness of basic points, it is necessary to  seriously implement the main solutions that the thesis has mentioned.  Especially, it is necessary to strengthen the leadership of the Party,  the   management   of   the   State   and   the   close   coordination   between  functional   agencies   and   departments   in   attracting,   managing   and  using foreign investment capital and ensuring economic security. The  leadership of the Party, the management of the State is a decisive  26 factor to the success of the process of attracting foreign investment  and ensuring economic security ... investment on economic security in Vietnam 2.2.1. Conception of the impact of foreign investment on   economic security in Vietnam From the analysis of some arguments, the author gives the notion:  The impact of foreign investment on economic security in Vietnam is the. .. impacts of foreign investment on economic security in the coming time Chapter 3 CURRENT SITUATION OF THE IMPACT OF FOREIGN 14 INVESTMENT ON ECONOMIC SECURITY IN VIET NAM  3.1. Overview on foreign investment in Vietnam over the past time ...   of foreign investment on economic security in Vietnam 3.2.1. Impacts of foreign investment on finance security * Positive impacts of foreign investment on finance security Firstly,   foreign