IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/1921.html
   My bibliography  Save this paper

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

Author

Listed:
  • Nguyen, Ngoc Anh
  • Nguyen, Thang

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.

Suggested Citation

  • Nguyen, Ngoc Anh & Nguyen, Thang, 2007. "Foreign direct investment in Vietnam: An overview and analysis the determinants of spatial distribution across provinces," MPRA Paper 1921, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:1921
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/1921/1/MPRA_paper_1921.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. Tam Vu & Byron Gangnes & Ilan Noy, 2008. "Is foreign direct investment good for growth? Evidence from sectoral analysis of China and Vietnam," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 13(4), pages 542-562.
    2. L. ALAN WINTERS & NEIL McCULLOCH & ANDREW McKAY, 2015. "Trade Liberalization and Poverty: The Evidence So Far," World Scientific Book Chapters,in: Non-Tariff Barriers, Regionalism and Poverty Essays in Applied International Trade Analysis, chapter 14, pages 271-314 World Scientific Publishing Co. Pte. Ltd..
    3. Bruce Blonigen, 2005. "A Review of the Empirical Literature on FDI Determinants," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 33(4), pages 383-403, December.
    4. Carlton, Dennis W, 1983. "The Location and Employment Choices of New Firms: An Econometric Model with Discrete and Continuous Endogenous Variables," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 440-449, August.
    5. Hood, Neil & Truijens, Thorsten, 1993. "European locational decisions of Japanese manufacturers: Survey evidence on the case of the UK," International Business Review, Elsevier, vol. 2(1), pages 39-63.
    6. David Dollar & Aart Kraay, 2004. "Trade, Growth, and Poverty," Economic Journal, Royal Economic Society, vol. 114(493), pages 22-49, February.
    7. J L Morris, 1987. "Industrial restructuring, foreign direct investment, and uneven development: the case of Wales," Environment and Planning A, Pion Ltd, London, vol. 19(2), pages 205-224, February.
    8. Breandan O Huallachain & Neil Reid, 1997. "Acquisition versus Greenfield Investment: The Location and Growth of Japanese Manufacturers in the United States," Regional Studies, Taylor & Francis Journals, vol. 31(4), pages 403-416.
    9. Coughlin, Cletus C & Terza, Joseph V & Arromdee, Vachira, 1991. "State Characteristics and the Location of Foreign Direct Investment within the United States," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 675-683, November.
    10. J L Morris, 1987. "Industrial Restructuring, Foreign Direct Investment, and Uneven Development: The Case of Wales," Environment and Planning A, , vol. 19(2), pages 205-224, February.
    11. Vernon, Raymond, 1979. "The Product Cycle Hypothesis in a New International Environment," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 41(4), pages 255-267, November.
    12. Philippe Robert-Demontrond & R. Ringoot, 2004. "Introduction," Post-Print halshs-00081823, HAL.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Toan Thang TRAN & Thi Song Hanh PHAM, 2013. "Spatial Spillovers of Foreign Direct Investment: The Case of Vietnam," Working Papers 12, Development and Policies Research Center (DEPOCEN), Vietnam.
    2. Anis Omri & Amel Sassi-Tmar, 2015. "Linking FDI Inflows to Economic Growth in North African Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 6(1), pages 90-104, March.
    3. repec:ipg:wpaper:2014-557 is not listed on IDEAS
    4. repec:bla:jecrev:v:68:y:2017:i:1:p:95-114 is not listed on IDEAS
    5. To, Minh Thu & Lee, Hiro, 2014. "Assessing the impacts of deeper trade reform in Vietnam in a general equilibrium framework," MPRA Paper 82271, University Library of Munich, Germany.
    6. Omri, Anis & Nguyen, Duc Khuong & Rault, Christophe, 2014. "Causal interactions between CO2 emissions, FDI, and economic growth: Evidence from dynamic simultaneous-equation models," Economic Modelling, Elsevier, vol. 42(C), pages 382-389.
    7. repec:ipg:wpaper:2014-542 is not listed on IDEAS
    8. Sajid Anwar & Lan Phi Nguyen, 2010. "Foreign direct investment and economic growth in Vietnam," Asia Pacific Business Review, Taylor & Francis Journals, vol. 16(1-2), pages 183-202, April.
    9. Omri, Anis & Kahouli, Bassem, 2014. "Causal relationships between energy consumption, foreign direct investment and economic growth: Fresh evidence from dynamic simultaneous-equations models," Energy Policy, Elsevier, vol. 67(C), pages 913-922.
    10. repec:taf:jdevst:v:52:y:2016:i:10:p:1431-1445 is not listed on IDEAS
    11. Hanh Vu Thi, 2015. "Essays on the Export Performance of Vietnam/Essais sur la Performance à l'Exportation du Vietnam," ULB Institutional Repository 2013/216765, ULB -- Universite Libre de Bruxelles.
    12. Hai T. H. Nguyen & Geoff Deverteuil & Neil Wrigley & Kanchana N. Ruwanpura, 2014. "Re-Regulation in the Post-WTO Period? A Case Study of Vietnam's Food Retailing Sector," Growth and Change, Wiley Blackwell, vol. 45(2), pages 377-396, June.
    13. repec:gam:jsusta:v:9:y:2017:i:10:p:1738-:d:113457 is not listed on IDEAS
    14. Omri, Anis & kahouli, Bassem, 2014. "The nexus among foreign investment, domestic capital and economic growth: Empirical evidence from the MENA region," Research in Economics, Elsevier, vol. 68(3), pages 257-263.
    15. Abdouli, Mohamed & Hammami, Sami, 2017. "Investigating the causality links between environmental quality, foreign direct investment and economic growth in MENA countries," International Business Review, Elsevier, vol. 26(2), pages 264-278.
    16. Thi Hong Hanh Pham, 2012. "Temporal causality and the dynamics of foreign direct investment and trade in Vietnam," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 21(1), pages 83-113, September.
    17. Omri, Anis & Kahouli, Bassem, 2013. "The nexus between foreign investment, domestic capital and economic growth: Empirical evidence from the MENA region," MPRA Paper 82505, University Library of Munich, Germany, revised Oct 2013.

    More about this item

    Keywords

    Foreign Direct Investment; Vietnam; multinationals; spatial distribution;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F2 - International Economics - - International Factor Movements and International Business

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:1921. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.