Preview

Impact of Fdi

Satisfactory Essays
Open Document
Open Document
1607 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Impact of Fdi
VIET NAM NATIONAL UNIVERSITY OF HO CHI MINH CITY UNIVERSITY OF ECONOMICS AND LAW

NGUYỄN TẤN VINH

IMPACT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC STRUCTUAL CHANGE IN HO CHI MINH CITY

Major: Code:

Economics 62.31.03.01

Supervisor:

1. Dr. Nguyễn Tiến Dũng 2. Dr. Lê Tuấn Lộc

DOCTORAL THESIS SUMMARY

Ho Chi Minh City - 2011

1

INTRODUCTION 1. Problem statement Industrialization and modernization of the economy and proactive international economic integration are the pressing issues for countries at low level of economic development. Raising the level and extent of the resources and building up a modern and sustained economic structure are of the core contents. Structural transformation becomes an objective factor of the development of national economy in the globalization era. FDI has an important role and through FDI, the host country has an opportunity to participate in the international division of labor, thereby raising the level of development, creating a driving force for structural transformation. Vietnam has always paid a great attention to attracting FDI to supplement the investment capital for development, promoting economic structural change. FDI has spillover effects to the economic sectors, and contribute to modernization of the economy, but FDI does not always have a positive impact. Therefore, if not analyzing of weaknesses in attracting and using FDI, we cannot draw possible solutions to promote positive and minimize negative impacts from to transfer funds ECONOMIC STUCTURAL. Ho Chi Minh City, a major economic center of the region and the country, has a dominant role over the capability of the country’s economic growth. The city is the one that leads the attraction of FDI, has the advantage in building a modern economic structure and gradually implement development in depth. Analyzing whether FDI actually affects the economic structural change or not? If so, to what extent? And how to promote the positive aspects and minimize

You May Also Find These Documents Helpful

  • Powerful Essays

    The integration of the global economy has strengthened the international integration of goods, technology, labour and capital. This process of cross-border restrictions eliminations on international capital flows has increased the growth of foreign direct investment (FDI) activity. Many countries make every effort to attract FDI because it will bring a substantial growth to their economy, in addition to its function as the principal vehicle of international capital movement.…

    • 3528 Words
    • 15 Pages
    Powerful Essays
  • Best Essays

    Fdi Analysis

    • 3738 Words
    • 15 Pages

    On the basis of previous studies of foreign direct investment (FDI) in insurance services industries by Moshirian (1997 and 1999), this study applies the similar model and variable with those previous studies to present analysis and discussion about FDI in insurance services industries in America from 1987 to 1998. As the extension on prior studies, this study found that the relative wage rate of the US versus the source countries, and FDI in manufacturing industries both are highly important determinants of FDI in insurance services industries in America in statistic. However, this result is different from Moshirian’s (1997), due to majority of factors which are valued important in his study are unimportant in this study. The disparity between different results indicates that along with the changes of political environment, economic climate, investors’ behaviors and methodological limitation, there are disparate determinants in different periods. As a result, it is necessary to testify it in further investigations.…

    • 3738 Words
    • 15 Pages
    Best Essays
  • Best Essays

    Foreign direct investment (hereafter referred to as FDI) has created significant impacts in China after the Opening-Reform in the late 1970s, China has been successful in attracting FDI, which has been played an crucial role in the economic development of China. China has now become the second largest foreign direct investment (FDI) beneficiary country in the world following the US. Annual FDI inflow was below $US100 in 1979, but exceeded $US580 billion in 2006, with an annual growth rate of close to 30%. (Fung et al. 2004). This trend is expected to continue in the foreseeable future, especially given the country’s entry into the WTO. Many advantages can be identified in FDI, including boost employment rate, calculate capitals and increase domestic competitive. On the other hand, there are also some drawbacks of FDI in China. This essay will start with a display of the advantages and disadvantages of investing in China, then describe benefits and drawbacks brought by FDI and finally provide several correspondence suggestions.…

    • 1633 Words
    • 7 Pages
    Best Essays
  • Best Essays

    Fdi in North America

    • 1790 Words
    • 8 Pages

    Foreign Direct Investment (FDI) is an investment involving a long-term relationship and reflecting a lasting interest in and control by a resident entity in one economy of an enterprise resident in a different economy (UNCTAD). There are two types of FDI, inflows and outflows, which can be used to help determine the investment strategies and economies of countries engaged in FDI. North America has been the source of nearly one-half of all investment and almost three-quarters of the jobs created throughout the globe (Huggins, 442). North America is probably the most important continent when it comes to dealing with FDI. The three main countries of North America, the United States, Canada, and Mexico, all rank in the top 15 of world economies, proving them to be desirable partners in FDI transactions. The trends of FDI discussed in this report will be unparalleled to this information and can lead to some predictions on how future trends of the countries of North America will continue to be superior to that of the other continents of the world.…

    • 1790 Words
    • 8 Pages
    Best Essays
  • Satisfactory Essays

    Out of all the 6 short stories we’ve read in our short stories unit, my favorite story and least favorite story was Two Kinds by Amy Tan. I felt a strong connection with the story because I strongly believe that adults shouldn’t live life through their children. In the story, the mother forces her daughter, Jing-Mei, to play the piano because she wants her to be a prodigy. I think it’s wrong for parents to try and make their children do something that they’ve failed at or wished they had done when they were younger only to their own satisfaction and not care about the child’s opinion. For example, it annoys me when parents tell their children they have to become a doctor because they themselves failed medical school or when parents tell their…

    • 246 Words
    • 1 Page
    Satisfactory Essays
  • Powerful Essays

    Nowadays the issue of foreign direct investments is being paid more attention, both at national and international level. There are many theoretical papers that examine foreign direct investments (FDI)’s issues, and main research on the motivations underlying FDI were developed by J. Dunning, S. Hymer or R.Vernon. Economists believe that FDI is an important element of economic development in all countries, especially in the developing ones. The conclusion reached after several empirical studies on the relationship between FDI and economic development is that the effects of FDI are complex. From a macro perspective, they are often regarded as generators of employment, high productivity, competiveness, and technology…

    • 3026 Words
    • 13 Pages
    Powerful Essays
  • Powerful Essays

    FDI in Vietnam

    • 6362 Words
    • 26 Pages

    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. Over the past year, the Vietnamese Government has attached importance to attracting foreign investment. The Government has incessantly improved investment environment to create favorable conditions for domestic and foreign enterprises, with special focus on realizing the legislation construction programs.…

    • 6362 Words
    • 26 Pages
    Powerful Essays
  • Best Essays

    To make a FDI we select Vietnam as our host country. Vietnam is rapidly emerging as a new center of economic growth in South-east Asia. Foreign investors seek business opportunities in both the domestic market of over 80 million potential consumers, and in low cost production sites. North American and European investors are in particular eyeing the domestic markets while investors from neighboring countries such as Taiwan are to a higher degree using Vietnam as an export base Vietnam’s young population – 95% are younger than 65 – is eager to explore Western consumer goods, and present a huge potential market for foreign investors. The high economic growth of the 1990’s, on average 7.3% annually, is expected to continue, suggesting an even larger market in the future. International integration, notably the membership in the ASEAN Free Trade Area (AFTA), and the anticipated membership in the WTO facilitate access to this attractive market.…

    • 4133 Words
    • 17 Pages
    Best Essays
  • Powerful Essays

    Moses Joseph Shawa, Yao Shen. Analysis of the Determinants of Trade Balance: Case Study of Tanzania. International Journal of…

    • 4995 Words
    • 20 Pages
    Powerful Essays
  • Good Essays

    FDI means accepting multinational companies setting up in a country and as FDI increases some countries, especially LDC’s can become over reliant on them and inflows of capital.…

    • 272 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    First and foremost, it is important to look at Vietnam’s market as a whole to see whether it really is an attractive investment opportunity. To do that, we must look at the recent events in Vietnam’s history. In the aftermath of the Vietnam War in April 1975, the Communist Party, which controlled the government, spent a few years regulating the country and helping to build up their largest city, Ho Chi Minh City, to become the productive center of the nation. Then, in 1986, the government decided to implement an economic renovation, referred to as Doi Moi in Vietnamese. This resulted in a great deal of inflowing FDI as well as new Vietnamese-owned organizations that were privately owned. The government made it clear that they wanted to allow these investments to encourage industrial growth as long as it did not impact Vietnamese industries. After almost doubling their FDI in a matter of years, by 1995 the total GDP in Vietnam was a whopping $19 billion, with their major investment sectors being in oil, gas, hotels, real estate, and services. As investment increased, so did privatization. This is the key element these MNC’s need to look at, since a politically Communist country would have to have some pretty serious regulations when it comes to private companies. However, by the end of 1995, private investment was almost level with FDI. With these regulations allowing privatization, the government also put into effect some policies that encouraged citizens who fled to return, so many people who…

    • 613 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    In last few decades extensive FDI inflows have been seen in developing countries. Developing countries compete to attract FDI. Primary restrictions in the way of FDI have been removed as the importance of fdi has been recognized. FDI is considered a long term source of capital and advanced technologies. . FDI is going to be the strongest tool for the measurement of globalization strength of a country. In addition to this foreign investors bring world’s best management practices. As a result of FDI more and more industries are setup in host countries increasing employment opportunities there. FDI is acting as a key mechanism to eliminate TGAP (technological gap) between developing and developed countries. FDI also promotes international trade.FDI is considered most powerful way of transforming traditional economies into modern economies. China, India and Korea are best examples of these transformed economies. Many studies have been conducted to study various factors that can whether directly or…

    • 2217 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Fdi a Boon or Bane

    • 1465 Words
    • 6 Pages

    The direct FDI impact in the short term from retail chains will be modest. If you look at the numbers -- as per [financial information services firm] CEIC Data -- FDI in 2008 was in the ballpark of US$35 billion and declined in 2009 and 2010. FDI in 2011 came in at around US$27 billion or so. So if we ask the question: Will international retail chains in the shorter term -- an 18-to-24 month horizon -- bring in US$8 billion to get back on track, the answer is probably not.…

    • 1465 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Impacts of Fdi in India

    • 3074 Words
    • 13 Pages

    The emergence of big supermarkets is inevitable once the FDI policy is put into place. What does this mean for the farming community? When supermarkets source from small farmers, they tend to buy from farmers who have the most non-land assets (like equipment and irrigation), the greatest access to infrastructure (like roads and cold chain facilities), and the upper size treacle of land (among small farmers).…

    • 3074 Words
    • 13 Pages
    Powerful Essays
  • Satisfactory Essays

    Fdi and Outsourcing

    • 343 Words
    • 2 Pages

    ‘‘We are not the blue states,We are not the red states but We are United states,’’ Barack Obama quoted after his victory. With Barack Obama re-elected as the president of US,India needs to wait and watch his stand on FDI,immigration,outsourcing and overall relations. India has a lot to gain by supporting his policies and our industry must do its bit by facilitating job creation in America and encourage joint partnership in healthcare utilities and education. A strong America will generate more FDI and create more global jobs, which would benefit the world. The slow pace of economic recovery in the US and the high rate of unemployment over the last few years saw Barack Obama taking a tough stance on Indian outsourcing companies in his first term.But this time Our Indian corporates are quite optimistic. Many US multinationals have large centres in India (IBM, Oracle, Microsoft, etc.) and they are able to generate profits due to Indian techies. We need to create a better trade policy with US by opening up FDI in India and put pressure on US foreign policy to create a win-win model for Indo-American businesses.Obama is also supportive of China playing a bigger role in Asia and looks at Beijing as an important partner, which is specifically not good news for India. As far as nuclear deal and FDI policy are concerned, it will be in India’s favour as we are looked upon as a big customer. We do not expect any major shift in his policies pertaining to IT, FDI or immigration. His first and foremost responsibility is to boost the US economy, create jobs and make America stronger. He will take all the appropriate steps towards the said goal. In the process, IT sector will grow and India is bound to get a fair share of the growing market and its related benefits. The IT sector will require competent manpower, talent and skills which to some extent India will get a chance to…

    • 343 Words
    • 2 Pages
    Satisfactory Essays