Fdi in Vietnam

Abstract 1. Introduction 1.1. Background and overall problem Foreign direct enthronement is star of the most important sources of capital to sparing development of non only poor countries, but also development and substantial nations. As a result, FDI has become the topic of universal interest. gibe to Hill (2008, pp. 245- 247), on that point are many benefits of FDI for a server country, such as resource- transfer terminations, employment effects, balance-of-payment effects and effect on competition and economic growth. Specially, in the case of developing countries which have lower rate of capital accumulation, FDI becomes more important since it is considered to be one of the most effective ways to sop up capital with the aim of economic growth, hunger removal as well as poverty reduction. As a consequence, attracting FDI plays an highly important role to almost nations and particularly developing countries. Vietnam is an Asian South- Eastern country having low point of departure because of consequences of the contend ending in the last 1970s. Vietnam economy has experienced a stagnated period after that. In order to rebuild infrastructure, notice and develop the economy, Vietnam needs a large amount of investment capital.

Being aware of the importance of foreign investment, in 1986, on the National Congress, Vietnamese government decided to implement an economic reform. Among those changes in economic policies, the first issue of the law on foreign direct investment created a turning- point do the development of Vietnam economy (Nguyen et al, 2007). Since then, the total FDI capital has witnessed a rapid rise by more than 35 times up to now. Although this figure slightly decreased in 1997, 1998 and 2009 because of negative impacts of the world(a) and regional economic crisis, the trend of FDI inflow is still upward. Specially, there is a significant increase in FDI capital in the period from 2006 to 2008 (Vietnam General Statistics Office). The World... If you want to get a wide essay, order it on our website: Orderessay

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