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Revisiting Exports and Foreign Direct Investment in Vietnam

20 Pages Posted: 12 Jun 2011  

Vo Tri Thanh

affiliation not provided to SSRN

Nguyen Anh Duong

affiliation not provided to SSRN

Date Written: June 2011

Abstract

Since 1986, Vietnam has undertaken various reform measures in the trade and foreign investment area. This paper finds significant contributions of world trade, and competitiveness and liberalization effects to Vietnam's export growth over the period 1997–2008. Vietnam's exports became more competitive and better complemented the import demand of Vietnam's trade partners. In addition, dynamic comparative advantage became evident in many products, but significant room remains for improving export competitiveness. Foreign direct investment (FDI) inflows also increased and helped stimulate Vietnam's exports. FDI inflows have increased in both the short‐ and long‐term, yet are only of a limited magnitude. This necessitates more effective measures to enhance the linkages between FDI and domestic enterprises.

Keywords: CMS decomposition, export competitiveness, FDI policy reform, spillover impact, trade liberalization

JEL Classification: F14, F15, F21

Suggested Citation

Thanh, Vo Tri and Duong, Nguyen Anh, Revisiting Exports and Foreign Direct Investment in Vietnam (June 2011). Asian Economic Policy Review, Vol. 6, Issue 1, pp. 112-131, 2011. Available at SSRN: https://ssrn.com/abstract=1861781 or http://dx.doi.org/10.1111/j.1748-3131.2011.01187.x

Vo Tri Thanh (Contact Author)

affiliation not provided to SSRN ( email )

Nguyen Anh Duong

affiliation not provided to SSRN

No Address Available

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