Nguyen Thi Hai Yen
Do Ngoc Kien
Keywords: FDI, FDI Attraction, New Context
Abstract
Vietnam is becoming an attractive destination of FDI. Vietnamese policymakers always create favorable conditions in attracting foreign investment flows. Total investment capital into Vietnam has increased significantly and the main reason comes from the efforts of the Government of Vietnam. This policy brief outlines the changes in government policy in attracting FDI into Vietnam using the systematic literature review approach. Through reviewing and synthesizing legal documents and policies related to FDI, we believe that Vietnam has approached FDI capital in a more active and selective manner.
The policy brief indicates a new context including (1) the new normal after the Covid-19 pandemic, (2) the trend of digital transformation on a global scope, (3) the trend of signing new-generation FTA, (4) strategic competition of major powers and geopolitical conflicts, (5) global climate change. On that basis, the policy summary shows new approaches in Vietnam’s policy orientation: from “attracting at all costs” to “selective attraction”, from “passive attraction” to ” active attraction”, from “attraction based on financial performance and project size” to “attraction based on socio-economic – environmental performance” and finally cooperation between the FDI sector and the local enterprises for increasing local contents in value-added. The state has paid more attention to technology transfer issues, competitiveness of domestic enterprises as well as environmental related impacts.
Policy Brief 04 (full): Policy brief 04_DinhhuongCS
