Impact of Fdi

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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

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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 the negative impact of FDI on the structural change in Ho Chi Minh City are issues that researchers are still not so clear. Therefore, the issue "Impact of Foreign Direct Investment on the economic structural change in Ho Chi Minh City" has been chosen to write a PhD thesis.

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2. Overview of empirical studies Works related to foreign direct investment and structural change concentrate on the following issues: 2.1. Analysis of current situation of attracting FDI at the provinces and delivery of main solutions. Some studies to named, such as: "Improving the investment environment to attract FDI in some Asian countries and lessons for Vietnam" by Duong Thi Binh Minh, Nguyen Thanh Thuy (2009), on Review of Economic Development, (225), p.15-22, “Foreign Investment in Vietnam period 1991-2000” by Nguyen Ngọc Thanh & Nguyen Dinh Mai (Finance Publishing House, Hanoi, 2001). 2.2. Rationale on the nature, the content and the role of FDI for Vietnam's

economy. A list of works including: “The impact of foreign direct investment on economic growth in Vietnam” by Le Xuan Ba (Scientific Publishing House, Hanoi, 2006), "The role of foreign direct investment for development and economic growth in Vietnam" by Nguyen Thi Canh (2009), Review of Economic Development, (225), p. 2-7. Authors estimate the impact of FDI on economic growth, but not the impact of FDI on economic structural change. 2.3. Solutions to improve the system of laws and policies related to foreign investment activities in Vietnam. Some studies are: "Foreign Direct Investment in Vietnam - The shortcomings of policy and solutions" of Do Duc Binh (2009), Journal of Economics and Development, (145), p. 6-9, "Transparency of the legal system and policies on foreign investment: Current situation and solutions" by Tran Hoa Hung (2005), Journal of Economics and Forecasting (3), p. 6-8. 2.4. Summary of the achievements of foreign direct investment in

Vietnam. Some works are: "Foreign Direct Investment in...
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