Foreign Direct Investment in Vietnam Essay

Foreign Direct Investment in Vietnam Essay

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Foreign Direct Investment in Vietnam

There is no dout that foreign direct investment (FDI) plays a very significant role in economic growth, according to experiences of new industrial countries in Asia. Over a decade of opening for FDI, we could realize that the more FDI inflows pour into our country the more we benefit. In fact, FDI has contributed a great proportion to fulfill targets on socio-economic development plan and has been one of the most important external sources of Vietnam on the process of industrializing and modernizing the country.

Statistics shows that there was a sharp rise in FDI commitments in the period of 1998-1995. The number of investment projects go up at average 50 percent each year untill the end of 1995. In 1996, we suffered a slight setback compared with the previous year, just up 29 percent. Next, the trend in 1997 is for a decline in both the number and volume of FDI commitments and finally, it became a steady decrease in FDI inflows into Vietnam in recent years. What are the causes?

This essay will examine the issue above with the purposes:
1. To have an overview on FDI in Vietnam in the period of 1988 to 1997.
2. To identify the causes of decline in FDI in recent years (since 1997 till now).
3. To deriving useful lessons from the past and put forward some measures to induce FDI in future: creating a better investment environment.

In the scope of utilizing relevant literatures and various available statistical sources printed in the newspapers/magazines/web-pages to analyze the situation of FDI in Vietnam, fingures may differ a little bit from some other sources.


In 1998, Vietnam ...

... middle of paper ... of Trade and of Foreign Affairs to organize international workshops and publish guide books and other documents to present investment opportunities in Vietnam.
 Organize meetings and workshops to promote foreign investment in Vietnam in co-operation with foreign business associations.

"Storms in a tea cup" is the image that a Singaporean investors used to portray Vietnam's investment environment. Storms of opaque policies, bureaucrat, inconvenience, complicated procedures have continuously beat foreign investors down so that they have to leave Vietnam market to a better one. Therefore, changing Vietnam's investment environment from something shoddy to something fine is the most important thing that the government has to perform now. The challenge is great; success depends only on the strength of our will.


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