Special topic: Research the foreign direct investment of south Korea to Vietnam in recent years

Special topic: Research the foreign direct investment of south Korea to Vietnam in recent yearsIn addition to promoting domestic resources, taking advantage of foreign direct investment is considered as a smart to shorten the time of In addition to promoting domestic resources, taking advantage of foreign direct investment is considered as a smart to shorten the time of In addition to promoting domestic resources, taking advantage of foreign direct investment is considered as a smart to shorten the time of

DA NANG UNIVERSITY OF ECONOMICS FACULTY OF INTERNATIONAL BUSINESS SPECIAL TOPIC RESEARCH THE FOREIGN DIRECT INVESTMENT OF SOUTH KOREA TO VIETNAM IN RECENT YEARS STUDENT: HỒ THỊ VUI CLASS: 42K01.5 ` LECTURER: NGUYỄN ANH TUẤN DA NANG 2019 Contents 2 LIST OF TABLES 3 RESEARCH THE FOREIGN DIRECT INVESTMENT OF SOUTH KOREA TO VIETNAM IN RECENT YEARS INTRODUCTION Necessity of the topic Foreign direct investment is now taking place on a global scale with increasing volume and pace of rotation In addition to promoting domestic resources, taking advantage of foreign direct investment is considered as a smart to shorten the time of initial capital accumulation, creating a solid premise for economic development, especially for developing countries Therefore, FDI is considered as the "golden key" to open the door of prosperity for nations In recent years, the number of countries investing in Vietnam has been increasing, especially Korea This in addition to creating favorable conditions for the country's development such as creating jobs for workers, increasing investment capital for facilities also causes many disadvantages and damages to the economy in the long term Therefore, the purpose of the study is to find out the impact foreign direct investment into Vietnam Research objectives: To research the Korean direct investment activities in Vietnam in the recent years Research tasks: Firstly, clarify and deepen the importance of FDI in Vietnam Secondly, clearly state the status and impact of Korea's FDI in Vietnam Thirdly, propose some solutions to effectively use FDI capital and attract foreign capital Research object: The situation of Korean FDI inflows into Vietnam Space: from the perspective of the state Time: study with data series from 2010-2018 Research Methods : 4 Methods of data collection: journals, statistics, surveys, Statistical methods, statistical analysis Topic structure: In addition to the preamble, table of contents, list of references, there are also the following chapters: CHAPTER 1: OVERVIEW CHAPTER 2: OVERVIEW OF THE FOREIGN DIRECT INVESTMENT FLOWS INTO VIETNAM CHAPTER 3: SITUATION OF SOUTH KOREAN FOREIGN DIRECT INVESTMENT INTO VIETNAM CHAPTER 4: PROPOSALS TO ATTRACT MORE FDI CAPPITAL TO VIETNAM I OVERVIEW ABOUT FDI Definition : The World Trade Organization gives the following definition of FDI: Foreign direct investment (FDI) occurs when an investor from one country (the host country) acquires an asset in another country (the country that attracts the investment) along with the right to manage that asset The management aspect is what distinguishes FDI from other financial instruments In most cases, both the investor and the property he or she manages overseas are business entities In such cases, the investor is often referred to as a "parent company" and the assets are called "subsidiaries" or "branch companies" =>Foreign direct investment is a form of long-term investment by an individual or company of one country in another country by establishing a business or production establishment The foreign individual or company will take control of this business Forms of FDI 8.1 Classified by investment nature a Investment in operating facilities 5 Operating facilities investment is a form of FDI in which the parent company invests in procurement and establishes new business facilities in the host country This form increases the volume of investment b Merger and acquisition Mergers and acquisitions are forms of FDI in which two or more FDI enterprises are merging with one another or one of these enterprises (either operating in the host country or abroad) acquires one FDI enterprises in the host country This form does not necessarily lead to an increase in the volume of investment 8.2 Classified by the nature of capital flows c Stock capital Foreign investors may purchase shares or corporate bonds issued by a domestic company at a level large enough to have the right to participate in the company's management decisions d Reinvestment capital FDI enterprises can use profits earned from past business activities to make additional investments e Internal debt transactions Between branches or subsidiaries in the same multinational company may lend to each other to invest or buy shares, corporate bonds of each other 8.3 Divided by the motive of the investor f Capital to search resources These are capital flows aimed at exploiting cheap and abundant natural resources in the host country, exploiting labor resources that may be low in skills but low in price or exploiting abundant skilled labor resources This type of capital also aims to exploit brand-name assets in receiving countries (such as famous tourist destinations) It also aims to exploit the intellectual property of the receiving country In addition, this form of capital also aims to scramble for strategic resources to avoid falling into the hands of competitors g Capital to search efficiency 6 This is a source of capital to take advantage of low input costs in receiving countries such as cheap raw material prices, cheap labor costs, prices of production factors such as electricity, water, communication costs, transportation, cheap business premises, preferential tax rates, legal conditions, etc h Capital to search the market This is a form of investment to expand the market or keep the market from being lost by competitors In addition, this form of investment also aims to take advantage of economic cooperation agreements between host countries with other countries and regions, taking the receiving countries as a springboard to penetrate into regional and global markets Factors promoting foreign direct investment 9.1 Differences in marginal productivity of capital among countries The marginal difference in productivity (the number of extra outputs a manufacturer can produce as a result of an additional unit of production factor) of capital between countries An excess country often has lower marginal productivity A country that lacks capital often has higher marginal productivity This situation will lead to the movement of capital flows from the surplus to scarce places to maximize profits Because the production costs of surplus countries are often higher than those of capital shortage countries However, this does not mean that all activities with high marginal productivity are invested in production by enterprises but also important activities, which are vital for enterprises to produce whether that activity gives low marginal productivity 9.2 Product cycle For most businesses involved in international business, the life cycle of these products consists of three main stages: the new product stage; maturity of products; standardized product stage 9.3 Special advantages of multinational companies 7 Multinational companies have unique advantages (such as basic competencies) that allow them to overcome cost constraints abroad so they are willing to invest directly abroad When choosing investment locations, multinational companies will choose where the conditions (labor, land, politics) allow them to exert the aforementioned specific advantages Multinational companies often have a great advantage of capital and technology investing in countries that have available raw materials, cheap labor costs and often a potential consumer market We easily realize the benefits of this 9.4 Market access and reduced trade conflict Foreign direct investment is a measure to avoid bilateral trade conflicts For example, Japan is often complained by the United States and Western European countries because Japan has a trade surplus and other countries have trade deficits in bilateral relations In response, Japan has increased its direct investment in those markets They manufacture and sell cars and computers in the United States and Europe, to reduce exports of these products from Japan They also invest directly in third countries, and from there export to North American and European markets 9.5 Exploiting experts and technology It is not that FDI only goes from the more developed to the less developed The opposite is even stronger Japan is a country actively investing in the US to exploit a team of experts in the US For example, Japanese car companies have opened car design departments in the US to employ American experts The same goes for Japanese computer companies Not only does Japan invest in the United States, other industrialized countries have similar policies 9.6 Access to natural resources For raw materials, many multinational companies seek to invest in countries with abundant resources Japan's first major wave of foreign direct investment in the 1950s was for this purpose 10 Benefits of attracting FDI 10.1 Supplement to domestic capital 8 In theories about economic growth, the capital factor is always mentioned When an economy wants to grow faster, it needs more capital If domestic capital is not enough, the economy will want both foreign capital, including FDI 10.2 Acquire technology and management know-how In some cases, capital for growth despite lacking can still be mobilized partly by "austerity policy" However, technology and management know-how cannot be achieved by that policy Attracting FDI from multinational companies will provide a country with the opportunity to acquire technology and business management knowhow that these companies have accumulated and developed over the years and with great expenses However, the dissemination of these technologies and management know-how to the whole country to attract investment also depends heavily on the country's absorbing capacity 10.3 Join the global production network When attracting FDI from multinational companies, not only enterprises with investment capital from multinational companies, but even other domestic enterprises having business relations with such enterprises will also participate too regional labor division process Therefore, the country attracting investment will have the opportunity to join the global production network to facilitate exports 10.4 Increase the number of jobs and labor training Because one of the purposes of FDI is to exploit the conditions to achieve low production costs, foreign-invested enterprises will employ many local workers An increase in the income of a part of the local population will contribute positively to local economic growth In the process of hiring, training of occupational skills, which in many cases is new and progressive in developing countries that attract FDI, will be provided by enterprises This creates a skilled labor force for the country to attract FDI Not only ordinary workers, but also local professionals also have the opportunity to work and be fostered professionally in foreign-invested enterprises 10.5 Large budget revenue 9 For many developing countries, or for many localities, taxes paid by foreign-invested enterprises are an important source of budget revenue 10 10 Japan 440 8944.5 Korea Rep of 1071 7320.5 Singapore 228 5249.9 Hong Kong SAR (China) 174 3252.6 China PR 408 2531.7 British Virgin Islands 42 1885 Australia 43 609.1 France 40 590.1 United States 88 555.4 Table FDI projects licensed in 2018 by main counters (General statistics office of Vietnam) 15 15 CHAPTER III SITUATION OF KOREAN DIRECT INVESTMENT IN VIETNAM 15 Overview of Korean FDI Korea has investment projects in all regions of the world with projects in 185 countries and territories In particular, focusing on China countries (total registered capital reached 83.3 billion USD including Hong Kong), United States (76.5 billion USD), Vietnam, Australia, Netherlands, Canada, Indonesia, Regarding investment, Korea invested mainly in manufacturing industry (USD 122 billion of registered capital); mining (85 billion USD); finance and insurance (US $ 41 billion); wholesale and retail (33.7 billion USD); real estate business (26.3 billion USD); professional, scientific and technical services (20.4 billion USD); construction (9.9 billion USD); IT (7.1 billion USD); transportation (5.5 billion USD), accommodation and catering services (5 billion USD), Table 5: Korea's FDI capital flows into the nations 16 16 16 Economic relationship between Vietnam and Korea Vietnam and Korea are two Asian countries The two countries established diplomatic relations on December 22, 1992 Over the past years, Korea has always ranked in the top countries with the largest economic relations with Vietnam The two countries have set up a Korea-Vietnam Intergovernmental Committee on Economic, Scientific and Technical Cooperation to promote bilateral economic cooperation The two sides signed a number of important agreements such as: Agreement on economic and scientific cooperation (February, 1993), Agreement on encouragement and protection of amended investment (September 2003),… In addition, in the past 10 years, South Korea assessed that Vietnam had basically built a cluster infrastructure to develop a number of industries along the product chain such as electricity, electronics, textiles Especially when the two countries signed a bilateral trade agreement in May 2015, the implementation of this agreement will surely lead to more quality and deeper trade and investment cooperation For example, Vietnam's commitments on investment services and activities to Korean companies under VKFTA In addition, Korea and ASEAN also signed the first commitment package of the ASEAN-Korea Free Trade Agreement Korea's invested enterprises mainly focus on manufacturing industry, employing a lot of labor and the main exported products Taking advantage of cheap labor is still the goal of many foreign investors when investing in Vietnam Korea's FDI capital flows into automobile, motorbike, electronics, civil and export products South Korean investors invest in Vietnam mainly in the form of 100% foreign invested capital accounting for about 80%, followed by joint-venture enterprises accounting for about 15% and the remaining is contractual contracts business cooperation, It is possible that Korean investors are very careful when investing in partners, and they are very careful in choosing business forms, fields of investment, and locations 17 Scale of Korea FDI investment in Vietnam 17 17 Korean investment projects generally perform well, with large average capital scale, higher than the national average (over 40 million USD) and mainly focusing on material production Korean investment projects mainly focus on areas with relatively good infrastructure The proportion of dissolved projects in Korea is relatively low (about 10%), because Korean investors are very careful in conducting surveys and research before deciding to minimize risks before went into operation According to GSouth Korea is currently the largest foreign investor in terms of both the number of projects and the total investment capital out of the 112 countries and territories investing in Vietnam Accumulated to October 2016, the total registered investment capital of Korea from Vietnam reached over 50 billion USD with 5,593 valid investment projects Korean FDI enterprises play an important role in Vietnam's economy by creating jobs for 70,000 workers and contributing about 30% of the total export value of Vietnam Korean businesses are doing business methodically in Vietnam and are considered as serious, highly effective investors and also have many contributions to Vietnam For example, Korea was the country with the most direct investment in Vietnam in 2015, accounting for 24% of the total investment capital in 2015 with various large and small projects across most localities in the country Next is Japan, Taiwan, Singapore, which are also countries that are expected to have large FDI inflows into Vietnam in the following years Table Total register investment capital 2015 (General statistics office of Vietnam) As of November 2015, total Korean FDI accounted for 31.6% of total FDI into Vietnam If counting the project of Hyosung Group (US $ 660 million, invested through Turkish entity), Korean FDI accounts for 34.9% of total FDI in Vietnam, 4.1 times higher than Japan; 6.2 times Taiwan and 6.8 times Singapore (but the traditional FDI partner ranks 2.3.4 of Vietnam) 18.Structure of Korean direct investment capital into Vietnam 18 18 18.1 Investment structure by investment sector Table Korea's FDI structure by sectors into Vietnam 2015 (General statistics office of Vietnam) According to Vietnam’s Foreign investment agency, in 2015, Korean projects were implemented on 18/21 branches and fields; the leading industry is manufacturing and processing with 2,566 projects with a total registered capital of US $ 24.03 billion (accounting for 64.5% of total investment capital) Real estate business ranked second with 82 projects with a total capital of US $ 6.99 billion (accounting for 18.5% of total investment capital) Construction field ranked third with 579 projects, total investment capital of US $ 2.4 billion (accounting for 6.4% of total investment capital) Among Korean investment projects, there are a number of large projects, focusing on efficient industry, contributing positively to socio-economic stability and development of colonized localities In the automobile manufacturing industry, there is VietnamDaewoo Automobile Company in Hanoi, registered capital of US $ 32.2 million, legal capital of US $ 10 million, which is 100% owned by Daewoo since year 1996, effective, export products, Daewoo cars market share in Vietnam accounted for 15%; The company has been profitable since 2000 In recent years, Korean-invested enterprises have performed relatively well, although unavoidably difficult due to the fierce competition and Vietnam Currently committed to cutting taxes within the framework of AKFTA In addition, local raw materials and spare parts are not sufficient Supporting industries have not been fully developed, so most of the raw materials and spare parts have to be imported; input costs are still high, the quota regime on EU and US markets has limited the production capacity of garment projects, mostly Korean projects affecting the performance The impact of Korean FDI projects in Vietnam On the other hand, there are labor disputes in some enterprises with 100% Korean capital which mostly stem from conflicts of economic interests between the parties and working conditions In general, all cases are handled 19 19 satisfactorily on the basis of conciliation, negotiation and mutual concessions with the participation of representatives of local competent agencies and agencies 18.2 Investment structure by region Table Structure of FDI by locality of Korea into Vietnam 2015 (General statistics office of Vietnam) In 2015, Korea invested in 51/63 cities and provinces nationwide In which, Hanoi attracted the most investment capital from Korea with 885 projects with a total registered capital of 5.3 billion USD, accounting for 14% of total investment capital, followed by Thai Nguyen with 43 projects With total investment capital of 4.72 billion USD, accounting for 12.5% of total investment capital, Dong Nai ranks 3rd with a total investment of 4.56 billion USD (accounting for 12.1% of total investment capital) The rest are other localities 18.3 Results from Korean direct investment in Vietnam a South Korea has become an important economic partner of Vietnam After establishing official diplomatic relations at the end of December 1992, the economic relations between the two countries had much development Right from the first years of promulgating the Law on Foreign Investment of Korean investors was present in Vietnam As of now, Korea is the first country among 105 countries and territories investing in Vietnam with 4,777 valid projects with a total registered investment capital of nearly 4.36 billion USD Investment of Korean enterprises is mainly concentrated in big cities, with relatively good infrastructure conditions such as Hanoi, Ho Chi Minh City, Dong Nai, Binh Duong and concentrated mainly in the industries such as auto assembly, steel, mechanics, electronics, footwear, textiles and construction b Most large Korean corporations have been present in Vietnam to create jobs for workers Many projects with large investment scale (over 40 million USD) such as Hyundai Shipyard - Vinashin with total investment of 192.6 million USD; Samsung Factory Vina Synthetics produces fabrics, polyester yarn with total investment of 192.6 20 20 million USD; Orion Hanel shaped lamp company with total investment of 178.5 million USD; Deaha Company Limited with total investment of 52 million USD to build star hotel; VSC - POSCO steel production project with a total investment of 56.1 million USD, has contributed positively to the socio-economic development of Vietnam Korean FDI enterprises play an important role in Vietnam's economy by creating jobs for about 70,000 laborers and contributing about 30% of Vietnam's total export value in 2014 c Some large projects of over US $ billion in Vietnam in Vietnam - Sam Sung Thai Nguyen High-Tech Complex Project - Phase investors Sam Sung Electronics Vietnam Co., Ltd Thai Nguyen - Korea, the investment project in Yen Binh I Industrial Park, Thai Nguyen Province with total investment capital registered capital of billion USD; - Project of LG electronics Vietnam Hai Phong Co., Ltd., investor of LG Electronics INC, this project invested in Hai Phong Industrial Zone, Hai Phong province with total registered investment capital of 1.5 billion USD; - Samsung Electro-mechanics Vietnam Co., Ltd., the investor of Samsung Electromechanics Co., Ltd, the project is invested in Yen Binh I Industrial Park, Thai Nguyen Province with a total registered capital of 1.23 billion USD; - Project of Posco-Vietnam Co., Ltd., investor of Posco Co., Ltd, Korea, the project is invested in My Phu II Industrial Park, Ba Ria - Vung Tau Province with a total registered investment capital of 1.128 billion USD ; - Project of SamSung Display Bac Ninh Co., Ltd, investor of Sam Sung Display Co., Ltd, the project is invested in Yen Phong I Industrial Park, Bac Ninh province with a total registered capital of billion USD; 19 The Impact of Korea’s FDI on the Vietnamese Economy 19.1 Achievement 21 21 After more than 10 years of establishing diplomatic relations, relations between the two countries are increasingly developing Two-way trade turnover always achieved a stable growth of 10-15% / year In addition to the policy developments, the Vietnamese economy provided a developed infrastructure in designated areas Further improvements in the Vietnamese economy, such as the accession to the ASEAN and WTO, stimulated not only Korea’s OFDI but also investments from many other countries, mostly in Asia Consequently, Korea’s FDI in Vietnam has grown extensively over the years, influencing the Vietnamese economy through various channels, like economic growth, employment generation and the transfer of technologies estimation results showed that FDI had a positive effect on labor productivity and economic growth in Vietnam Data for Vietnam’s provinces showed that FDI, together with domestic investment, human capital, labor force and international trade, had positive effects on economic growth That brings a huge revenue to the country, paving the way for other countries to continue investing in Vietnam Creating capital for our country to invest in developing facilities, industrial parks and factories built to create jobs for laborers Take advantage of the country's strengths and develop its economy 19.2 Limitations There is no denying the benefits that Korea's FDi capital has brought to Vietnam in recent years However, besides the quiz, there are still some aspects that adversely affect our country First, allowing Korean businesses to rush to build factories factories across the country caused mixed reactions from the people Factories occupy land, causing harm to long-term living environment, failing to build up standards, thus causing harms to workers' health and labor safety Secondly, the industries that Korea invests in our country are only secondary industries, which need low labor skills, so enterprises pay low salaries, making products with no high value for the economy, causing waste social resources, disequilibrium among sectors in the economy 22 22 And, businesses are mainly invested with 100% foreign capital, so we have difficulty controlling, limited technology transfer, not helping long-term development 23 23 CHAPTER IV Proposals to attract more FDI capital into Vietnam 20 Experiences from other countries 20.1 China China has mobilized FDI in the form of production contracts, joint ventures, 100% foreign investment capital into special areas The basic policy to attract Chinese investment is the tax policy China has issued many separate taxes for investment forms: joint venture, 100% foreign capital for 14 coastal cities The joint venture pays taxes with 30% and 10% additional income for the localities For enterprises with 100% foreign capital, the profit tax is from 20-40% and 10% for localities Regarding import and export duties, China has exempted import taxes on items such as: machinery, equipment, loose parts, materials contributed as joint venture capital, or machinery and equipment from foreign countries brought in to exploit oil and gas, develop energy, railways, roads, and put into export processing zones Regarding administrative procedures, China decentralizes strongly to localities on project evaluation and investment licensing After obtaining the investment license, the procedures related to project implementation were quickly resolved The ground clearance, electricity supply, water supply, traffic and environment issues have been completely solved Implementing the "one-door" policy to create favorable conditions for FDI attraction In addition, China for a longer period may be more than 50 years 20.2 Indonesia Indonesia encourages investment in export projects, saving foreign currencies, processing finished and semi-finished products, transferring technology, employing experts and Indonesian labor • About tax policy: 24 24 For profit taxes, if the company has a net profit of 10 million rupees or less, it is taxed at 15%, over 10 million rupees, it is taxed at 25%, over 50 million rupees, the tax is 35% Interest, rental, resource, technical, and management fees are taxed at 15% on sales There is no sales and income tax reduction • Regarding import tax: Indonesia has an import duty exemption or reduction policy on machinery, equipment and parts approved by the investment committee in the list For export products: The credit interest rate for export is 9% / year, while other interest rates are 18-24% / year Refunded or exempted from import tax on items The company that produces the goods for export is not only allowed to export its goods but also other companies • Regarding market policy: Recently, in order to create a favorable competitive environment, Indonesia allowed all industries except the exclusion list and in bonded warehouses to be free in the domestic market Indonesia also lifted restrictions and taxes on the use of foreigners • Regarding administrative procedures: Indonesia simplifies procedures for granting investment licenses, especially industrial investment 20.3 Thailand The Thai government encourages investors to cooperate with state agencies, exploit resources and protect the environment, labor-intensive projects, labor export, and use Thai raw materials, replacing imported goods, is prioritized by the state The rate of joint venture capital does not become a mandatory condition However, for projects that allow Thailand to contribute more than 50% of capital, the investment committee issues guarantee certificates 25 25 In terms of profit tax, a 30% tax on companies and partners registered on the stock market in Thailand and a 35% tax on companies and other partners Depending on each project, income tax may be exempted or reduced for 3-8 years after it is profitable Regarding import tax, enterprises are exempted from 50% of import tax on goods that Thailand cannot produce Regarding export, enterprises producing export products are exempted from import tax on materials, spare parts, details temporarily imported for re-export, and exempt or reduced income tax by 5% Enterprises in export processing zones are exempt from import tax on supplies 21 Solutions to improve the efficiency of attracting and using foreign investment capital in the coming time In the coming time, with the context of the strong 4.0 Industrial Revolution, the orientation to attract FDI in line with the requirements of Vietnam's international economic integration, it is necessary to focus on the following issues: Firstly, to prioritize attracting FDI capital into hi-tech industries, new and advanced technologies, environment-friendly technologies, information technology, telecommunications and electronics, at advanced levels of world, automotive technology, agricultural machinery, construction equipment, industrial equipment, electrical equipment, supporting industries, research and development, financial services, logistics and other modern services Secondly, identifying FDI attraction is both an opportunity and a challenge, thereby building a mutually beneficial, cooperative relationship In order to increase the added value per unit of product and increase the "localization" rate, foreign investors should be invested in capital, high technology, advanced and modern, to participate more deeply production networks and global value chains; Contribute to improving the capacity of innovation, national competitiveness, businesses and products and services of Vietnam At the same time, it is necessary to strengthen the linkage between the FDI sector and the domestic sector to increase the "localization" rate and the value of 26 26 the products created Thereby, expanding exports, promoting economic restructuring, associating with innovation of growth model on the basis of Industrial Revolution 4.0 Thirdly, there is a strategy to train managers and technical workers working in FDI enterprises in terms of professional skills, behavior and working attitude Hone the managerial staff operating in the field of foreign economic skills of market exploitation, business skills and international law Paying attention to salary policies, building trade unions in FDI enterprises to protect the legal rights for Vietnamese workers Fourthly, continue to improve the system of laws and policies related to investment in the direction of publicity and transparency, ensuring competitiveness compared to other countries in the region Ensure clarity, detail, ease of application and transparency of procedures to improve the investment environment At the same time, perfecting legal documents to encourage and create favorable conditions for technology transfer activities, ensuring the effectiveness of state management of this activity, preventing the situation of "price transfer" ”, Evading taxes, evading financial obligations through technology transfer contracts 27 27 Conclusion After more than 20 years of implementing the economic reform policy, opening up foreign investment attraction, international economic integration box in the region and the world, especially after joining the World Trade Organization, Vietnam has made great achievements in national construction and development From a poor, backward country, we have gradually established a solid foundation in the near future to gain a foothold in the international arena With the goal of turning our country into an industrialized country by 2020, the government needs solutions to attract foreign investment, effectively utilize capital, protect the environment and ensure growth in long-term Invest properly, catch up the trend of social development, should not follow the path, and go after other countries Maintain good relationships with countries around the world, taking human development as the core for the country's development Eliminate projects and plots harming the nation, people and the natural environment 28 28 References The Impact of Foreign Direct Investment on Economic Growth: Evidence from Vietnam The Patterns of Korea’s Foreign Direct Investment in Vietnam Ji Hyun Oh, Jai S Mah Potential economic impacts of the Vietnam-Korea free trade agreement on Vietnam - Thanh Hoan Phan Assistant Professor, College of Economics, Hue University, Ji Young Jeong Professor, College of Commerce, Chonbuk National University Improving quality of foreign direct investment attraction in Vietnam - Ngo Phuc Hanh, Đao Van Hùng, Nguyen Thac Hoat & Dao Thi Thu Trang General statistics office of Vietnam Vietnam’s Ministry of planning and investment 29 29 ...Contents 2 LIST OF TABLES 3 RESEARCH THE FOREIGN DIRECT INVESTMENT OF SOUTH KOREA TO VIETNAM IN RECENT YEARS INTRODUCTION Necessity of the topic Foreign direct investment is now taking place on... foreign direct investment into Vietnam Research objectives: To research the Korean direct investment activities in Vietnam in the recent years Research tasks: Firstly, clarify and deepen the importance... investor in terms of both the number of projects and the total investment capital out of the 112 countries and territories investing in Vietnam Accumulated to October 2016, the total registered investment