FDI INFLOWS INTO VIETNAM AFTER JOINING THE WTO

Date Received: 10-04-2012

Date Accepted: 05-08-2012

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Issue: Vol. 10 No. 4 (2012)

Section:

KINH TẾ XÃ HỘI VÀ PHÁT TRIỂN NÔNG THÔN

How to Cite:

Chi Cuong , H. (2024). FDI INFLOWS INTO VIETNAM AFTER JOINING THE WTO. Vietnam Journal of Agricultural Sciences, 10(4), 679–692. https://vie.vjas.vn/index.php/vjasvn/article/view/1685

FDI INFLOWS INTO VIETNAM AFTER JOINING THE WTO

Hoang Chi Cuong 1, 2, 3, 4, 5

  • 1 Waseda University, Tokyo, Japan
  • 2 Hai Phong Private University, Hai Phong, Vietnam
  • 3 GSAPS, WasedaUniversity, Tokyo, Japan, Doctoral Candidate
  • 4 Graduate School of Asia - Pacific Studies, Waseda University, Tokyo, Japan
  • 5 Graduate school of Asia - Pacific Studies

    • Keywords

    Determinant, Foreign direct investment, World Trade Organization, trend, Vietnam

    Abstract


    Foreigndirect investment (FDI) has taken a crucial role in Vietnam’s development processsince the launch of Renovation in 1986. After Vietnam’s accession to the World Trade Organization (WTO), a large amount of FDI capital flowed into country, up to 140 billion USD, due to the openness of country’s economy, more transparent, predictable investment environment, and several national advantages. Wherein, there was a switching of FDI capital from manufacturing sector to service one together with a downward trend in agriculture. Like previous duration, Vietnam’s FDI capital sources came mostly from Asia-Pacific region and European economies (net capital, technology exporters) probably caused by Vietnam’s integration emphasizes in dynamic Asia-Pacific region. Another interesting finding was that, geographical allocation of FDI was characterized by concentration on three main key economic regions: the Red River Delta (surrounding Ha Noi, Hai Phong, and Quang Ninh), the Central region (surrounding Da Nang), and the Southeast of country (surrounding Ho Chi Minh City) owing to better infrastructure, abundance of skillful labor force, and bigger market size. To use/attract FDI capital more effectively and enhance the role of FDI in Vietnam’s development process, some suggestions were also proposed.

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