Impacts of FDIs and Suggestions for Attracting FDIs

Authors

  • Nguyen Thuy Duong  Thuongmai University, Hanoi Vietnam

DOI:

https://doi.org/10.32628/IJSRST52310333

Keywords:

FDI, foreign direct investment, investment capital, labor productivity

Abstract

Through the regression analysis method based on data on FDI and labor productivity of 63 provinces/cities in the period from 2010 to 2021, the results allow to confirm that FDI has an impact on local productivity in 4 aspects. Specifically, creating favorable conditions and environment for investors, proposing support packages to encourage FDI projects with large capital scale, using a large number of employees, and achieving high revenue efficiency. And this paper also suggests some solutions to attract FDI in terms of both quality and quantity of FDI projects.

References

  1. Blomström, M., & Sjöholm, F. (1999). Technology transfer and spillovers: Does local participation with multinationals matter? European Economic Review, 43(4–6), 915–923. https://doi.org/10.1016/S0014-2921(98)00104-4
  2. Boghean, C., & State, M. (2015). The Relation between Foreign Direct Investments (FDI) and Labour Productivity in the European Union Countries. Procedia Economics and Finance, 32(15), 278–285. https://doi.org/10.1016/s2212-5671(15)01392-1
  3. DT Tinh et al. (2021). Doing Business Research and Teaching Methodology for Undergraduate, Postgraduate and Doctoral Students-Case in Various Markets Including Vietnam, Ilkogretim Online 20 (1)
  4. de Backer, K., & Sleuwaegen, L. (2003). Foreign ownership and productivity dynamics. Economics Letters, 79(2), 177–183. https://doi.org/10.1016/S0165-1765(02)00323-3
  5. D Thi Ngu, et al. (2021). Language teaching application to English students at master's grade levels on history and macroeconomic-banking management courses in universities and colleges, Journal of Language and Linguistic Studies 17 (3), [1457]-1468
  6. Đỗ Thị Phượng. (2020). Ảnh hưởng của khối FDI đến năng suất lao động toàn nền kinh tế Việt Nam. Tạp Chí Công Thương, 12, 120–123.
  7. Dung VTT, Huy DTN, Thach NN, Thuy NT. Enhancing the capabilities of students after graduation-a case study at university of economics and business administration-thai Nguyen University, Vietnam, Elementary Education Online. 2021;20 (4):592-592.
  8. Driffield, N., Munday, M., & Roberts, A. (2002). Foreign direct investment, transactions linkages, and the performance of the domestic sector. International Journal of Phytoremediation, 21(1), 335–351. https://doi.org/10.1080/1357151021000010000
  9. HT Hanh et al. (2020). CHALLENGES AND OPPORTUNITIES FROM IMPACTS OF FDI AND INCOME ON ENVIRONMENT POLLUTION: ROLE OF FINANCIAL ACCOUNTING TRANSPARENCY IN FDI FIRMS, Journal of Security & Sustainability Issues 10 (2)
  10. IMF. (1993). Balance of Payments Manual. In International Monetary Fund. International Monetary Fund. https://doi.org/10.2307/2549626
  11. Iršová, Z., & Havránek, T. (2013). Determinants of Horizontal Spillovers from FDI: Evidence from a Large Meta-Analysis. World Development, 42(1), 1–15. https://doi.org/10.1016/j.worlddev.2012.07.001
  12. Javorcik, B. S. (2004). Does foreign direct investment increase the productivity of domestic firms? in search of spillovers through backward linkages. American Economic Review, 94(3), 605–627. https://doi.org/10.1257/0002828041464605
  13. Liu, Q., Lu, R., & Qiu, L. D. (2016). Foreign Acquisitions and Target Firms’ Performance in China. World Economy, 40(1), 2–20. https://doi.org/10.1111/twec.12428
  14. NT Hoang et al. (2021). Cost-benefit Analysis of FDI: FDI Barriers and Firm Internal Capabilities, Revista Geintec-Gestao Inovacao E Tecnologias 11 (3), 1371-1381
  15. NTT Phuong et al. (2020). The evaluation of impacts of a seven factor model on nvb stock price in commercial banking industry in vietnam-and roles of Discolosure of Accounting Policy In Risk Management, International Journal of Entrepreneurship 24, 1-13
  16. NTN Lan et al. (2020). ENHANCING ROLES OF MANAGEMENT ACCOUNTING AND ISSUES OF APPLYING IFRS FOR SUSTAINABLE BUSINESS GROWTH: A CASE STUDY, Journal of Security & Sustainability Issues 10 (2)
  17. NT Hai et al. (2021). Educational Perspectives On Differences Between Management Case Study and Economic & Finance Case Study Teaching in Universities, Design engineering 7
  18. NT Hoa et al. (2021). IMPLEMENTATION OF STUDENTS'S SCIENTIFIC RESEARCH POLICY AT UNIVERSAL EDUCATION INSTITUTIONS IN VIETNAM IN TODAY SITUATION AND SOLUTIONS, Review of International Geographical Education Online 11 (10)
  19. NT Hang et al. (2021). IOT Impacts and Digital Transformation at Listed Vietnam Banks, Webology 18
  20. NTP Thao et al. (2021). Measuring citizen’s satisfaction when using E-Government online public services: lessons from Vietnam, J Contem Issues Bus Gov 27 (1)
  21. NN Thach et al. (2021). Risk Management Under Impacts of Macro Economic Factors Ina Big Seafood Ex-Import Firm-Angiang Fisheries Ex-Import Jsc. In Vietnam, Management 25 (1), 172-185
  22. OECD. (1996). Benchmark Definition of Foreign Direct Investment (3rd Editio). Organisation for Economic Cooperation and Development.
  23. Pham Hong Chuong, & Ho Dinh Bao. (2021). Differences in the impact of foreign direct investment on the productivity of Vietnam's corporate sector. Economic & Development Review - National Economics University, 287, 2–12. https://doi.org/10.1108/TQM-10-2011-006Samuelson, P., & Nordhaus, W. (2009). Economics (19th editi). McGraw Hill.
  24. P Van Tuan et al. (2021). Impacts of Competitor Selection Strategy on Firm Risk-Case in Vietnam Investment and Finance Industry, Revista Geintec-Gestao Inovacao E Tecnologias 11 (3), 127-135
  25. Saurav, A., & Ryan, K. (2020). A Literature Review on the Effects of FDI on Local Firm Productivity. WorldBank Finance, Competitiveness & Innovation.
  26. Singh, A. P. (2017). Does FDI Promote Productivity? A Deep Dive. Indian Journal of Industrial Relations, 52(3), 443–455. https://www.jstor.org/stable/26536408
  27. General Statistics Office. (2022). Statistical Yearbook - The Statistical Yearbook 2021. Statistical Publishing House.
  28. Tran Van Nguyen, & Do Thi Thu Ha. (2018). Does FDI inflow increase labor productivity in ASEAN-5 countries? Economic and Political Problems of the World, 5, 18–29.
  29. Tram PN et al. (2021). Educational, Political and Socio-Economic Development of Vietnam Based on Ho Chi Minh’s Ideology, Elementary education Online. 2021;20 (1).
  30. Thuy DVT et al. (2021).. Quality of education of ethnic minority communities in vietnam-problems and recommendations. Elementary Education Online. 2021;20 (4).
  31. TTH Ha et al. (2021). Modern corporate governance standards and role of auditing-cases in some Western european countries after financial crisis, corporate scandals and manipulation, International Journal of Entrepreneurship, 23(1S)
  32. ThiHoa N, Hang NT et al. (2021). Human resource for schools of politics and for international relation during globalization and EVFTA, Elementary Education Online. 2021;20 (4).
  33. Trung ND et al. (2022). Using english to teach students with social sciences major-via a case of some vietnam newspapers with the uk, italian and french approaches and regulations on publishing fake news, Journal of Language and Linguistic Studies. 2022;17 (3).
  34. TH Le, NT Hang, Gwoździewicz S, Trung ND, Van Tuan P. (2021). Further researches and discussion on machine learning meanings-and methods of classifying and recognizing users gender on internet. Advances in Mechanics. 2021;9(3):1190-1204.
  35. Vu TDT, Huy DTN, Trang NTH, Thach NN. Human education and educational issues for society and economy-case in emerging markets including Vietnam. Elementary Education Online. 2021;20 (2)

International Journal of Scientific Research in Science and Technology

Downloads

Published

2023-06-30

Issue

Volume 10, Issue 3, May-June-2023

Section

Research Articles

License

Copyright (c) IJSRST

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

[1]
Nguyen Thuy Duong "Impacts of FDIs and Suggestions for Attracting FDIs" International Journal of Scientific Research in Science and Technology(IJSRST), Online ISSN : 2395-602X, Print ISSN : 2395-6011,Volume 10, Issue 3, pp.355-360, May-June-2023. Available at doi : https://doi.org/10.32628/IJSRST52310333