Foreign direct investment in Vietnam: An overview and analysis the determinants of spatial distribution across provinces

Anh Nguyen () and Thang Nguyen

MPRA Paper from University Library of Munich, Germany

Abstract: Vietnam has been quite sucessful 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 differenct source countries seem to behave differently in chosing the location of investment.

Keywords: Foreign Direct Investment; Vietnam; multinationals; spatial distribution (search for similar items in EconPapers)
JEL-codes: F2 F23 (search for similar items in EconPapers)
Date: 2007-06-10
New Economics Papers: this item is included in nep-dev, nep-geo, nep-sea and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (31)

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