Foreign Direct Investment in Vietnam: An Overview and Analysis the Determinants of Spatial Distribution Across Provinces

67 Pages Posted: 12 Jul 2007

See all articles by Anh Ngoc Nguyen

Anh Ngoc Nguyen

DEPOCEN

Thang Nguyen

Center for Analysis and Forecasting

Date Written: July 10, 2007

Abstract

Vietnam has been quite successful in attracting FDI inflows since the inception of economic reform in 1986. The inflow of FDI has contributed significantly to the economic development of Vietnam. Still, the determinants of FDI inflow and its impacts on the economy of Vietnam are under-researched. In this paper we provide an overview of foreign direct investment (FDI) in Vietnam and attempt to review of the current status of economic research on the determinants of FDI and its impacts on the economy of Vietnam. Our regression analysis of the determinants of FDI spatial distribution across provinces points to the importance of market, labour and infrastructure in attracting FDI. Government policy as measured by the Provincial Competiveness Index (PCI), however, does not seem to be a significant factor at the provincial level. Foreign investors from different source countries seem to behave differently in choosing the location of investment.

Keywords: Foreign Direct Investment, Vietnam, multinationals, spatial distribution

JEL Classification: F2, F23

Suggested Citation

Nguyen, Anh Ngoc and Nguyen, Thang, Foreign Direct Investment in Vietnam: An Overview and Analysis the Determinants of Spatial Distribution Across Provinces (July 10, 2007). Available at SSRN: https://ssrn.com/abstract=999550 or http://dx.doi.org/10.2139/ssrn.999550

Anh Ngoc Nguyen (Contact Author)

DEPOCEN ( email )

216 Trang Quang Khai
Ba Dinh
Hanoi, Hanoi Ba Dinh
Vietnam

HOME PAGE: http://www.depocen.org

Thang Nguyen

Center for Analysis and Forecasting ( email )

France

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
1,723
Abstract Views
6,053
rank
10,425
PlumX Metrics