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INTRODUCTION

mechanisms and measures for orientation, regulation, screening and effective
control, linked to development objectives. Sustainable economy while the
objective of foreign investors is to maximize profits.

1. Necessity of the research topic
In the process of opening up, integrating and attracting FDI, besides the
positive effects, FDI has shown many limitations and has not reached to the
targets and expectations, not fully meeting the Vietnam’ s objectives of
sustainable economic development: the flow of investment from developed
countries to Vietnam is restriction; FDI mainly focuses on labor-intensive
industries, uses many resources, takes advantage of industrial protection
policies; many projects are not high, technology transfer is mainly medium and
backward; The spillover effect is unclear, not supporting the development of
supporting industries; low disbursement rate; the average income of laborers is
low; the demand for housing and cultural life in labor intensive areas has not
been met; Many FDI enterprises have the status of transferring prices, false
profits, interest actually distort the transactions in the economy and cause
budget losses.
In recent years, there have been many FDI’s low quality projects, which
pollute the environment, negatively affect the people's life in the investment area,
the target of sustainable economic development of the locality and Vietnam such
as Vedan Dong Nai, Tung Kuang Hai Duong, Bauxite Tay Nguyen (Nhan Co Tan Rai), Vinh Tan Binh Thuan Thermal Power ... Especially Formusa Ha Tinh,
although only in sanitation, however, the environmental disaster in the four central
provinces of Ha Tinh, Quang Binh, Quang Tri and Thua Thien Hue. Estimated
damage to billions of dollars, severe economic, social and environmental impact

of the four localities and the lives of millions.
The cause of the situation of FDI is not linked to the objective of
sustainable economic development primarily due to socio-economic difficulties
in the process of opening up, integrating, attracting FDI, limited awareness of
multidimensional impact of FDI in international economic integration ..., give
prominence to quantity, light quality, high achievements in attracting, licensing
and deploying FDI’s projects lasting many years; the unhealthy competition of
many localities, breaking the planning, not ensuring the common interests and
objectives of sustainable economic development. In addition, there is a lack of
comprehensive and synchronous master plan for this economic sector, lack of

In the condition that Vietnam is a low middle-income country; To
implement the roadmap for joining the AEC, the Vietnam-EU free trade
agreement, the CPTPP ...; The economic, financial and political situation in the
region and the world is often unstable and unpredictable; the perception and
evaluation criteria of the international community on the level of development
of each country changes; the scarce capital and the competition of countries in
the region are fierce ... to ensure that FDI is a part, an important resource
contributing to the objective of sustainable economic development of Vietnam,
to prevent and mitigate the negative impacts of sustainable economic
development in the future, to set the requirements for study and evaluation of
the situation of attracting, managing and contributing to this economic sector. to
adjust the policy accordingly. For that reason, the topic: "Foreign direct
investment with the objective of sustainable economic development of
Vietnam" was selected for research.
2. Overview of relevant research and research gaps
2.1. Overview of foreign studies
2.1.1. Studies on the objective of sustainable economic development
Studies have shown that there is a need to ensure a sustainable
development of the present and the future, with appropriate and harmonious

behavior in exploitation, investment, development and conservation.
Sustainable economic development is needed on a global, national and
corporate level to ensure long-term benefits. However, the selection and pursuit
of sustainable economic development poses many difficulties, complexities, the
need for drastic changes in the policy of the state, the hand of the whole society.
2.1.2. Studies on the impact of foreign direct investment
The research results favor the positive role of FDI in providing capital,
creating a driving force for the recipient country. However, many studies
suggest that the actual capital supply of FDI is low and quite expensive.
In various studies, in the various cases, there are the most inexplicable
conclusions about the impact of FDI on technology and output. Many studies


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show that there is no positive spillover effect of technology, or the benefits of
bringing technology into the home country is negligible, even without. Increasing
the output of FDI enterprises reduces the output of domestic enterprises.

economic development of host country. Studies on FDI are less linked to the
objective of sustainable economic development. In contrast, studies on
sustainable economic development are less associated with FDI. Therefore, the
dissertation is a research that contributes to fill the gap of research that attaches
FDI to the objective of sustainable economic development.

While many studies have found a coherent causal relationship and
positive role of FDI in economic growth, there are few studies that indicate that
there is no significant positive FDI with economic growth and FDI influence

positively to the growth of receiving countries is conditional.
The impact of FDI on the import / export of the recipient country depends
on the target market for which the investment is directed. Depending on the
market segment it serves, FDI will not, or likely increase, the extent of
international trade of the receiving country to a varying degree. In general, FDI
helps expand the trade of the recipient countries, especially export markets,
because the trend of FDI is export oriented.
In addition to the conclusions about the positive impact of FDI on
employment creation, training to improve the professional level, and
improvement of the living standard of the labor force, many studies have not
found or seen very limited impacts. positive from FDI.
2.1.3. Studies on FDI with the objective of sustainable economic
development
Studies show that FDI often only has positive effects in less developed
countries and the early stages of industrialization; FDI itself does not really
contribute positively to the objective of sustainable economic development of
the receiving country. In order to achieve the expectation that the foreign direct
investment sector contributes positively to sustainable economic development,
the receiving country must prepare and perfect the material and economic
conditions. , technical, as well as related policies and legislation.
2.2. Overview of research in the country
In Vietnam, many studies on FDI have been conducted. However, there is
no research focused on the relationship between FDI and the objective of
sustainable economic development.
2.3. Research gap
So far, according to the author's understanding, no published scientific
work has focused on FDI as an important resource contributing to sustainable

3. Objectives of the study
3.1. Overall objectives

Studying and evaluating the impact and relationship between FDI and the
target of sustainable economic development of Vietnam. Based on the research
results, the dissertation proposes a policy solution to link FDI to sustainable
economic development in Vietnam by 2025 with a vision to 2035.
3.2. Detail objectives
- Overview of domestic and international research projects on sustainable
development, sustainable economic development, FDI with the objective of
sustainable economic development.
- Systemize and clarify the theoretical issues of FDI with the goal of
sustainable economic development of a country.
- Analyze and evaluate the status of FDI with the goal of sustainable
economic development of Vietnam in 1988 - 2017.
- To study the experiences of some countries on FDI with a view to
sustainable economic development and lessons for Vietnam.
- Proposing orientations and policy solutions to link FDI to sustainable
economic development of Vietnam by 2025, vision to 2035.
4. Subjects and scope of research
4.1. Research subjects
Researching FDI as an important resource contributes to achieving the
goal of sustainable economic development through a number of indicators
reflecting the contribution to sustainable economic development.
4.2. Research scope
Study the relationship and assess the impact of FDI on Vietnam's
sustainable economic development goals from 1988 to 2017, in four stages
from 1988 to 1990; 1991-2000; 2001-2010; 2011-2017, in a number of aspects:


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contribution of capital, technology, labor, revenue contribution, GDP growth,
import and export, market opening, economic restructuring, Vietnamese
products have competitive advantages...

contribution of FDI to the economy and the objective of sustainable economic
development of Vietnam.

Study the experience of some countries on FDI with the goal of
sustainable economic development and draw lessons for Vietnam.
5. Research questions
- How is FDI estimated to be associated with the goal of developing the economy?
- What are the criteria for assessing the contribution of FDI to the
development of the economy?
- How does FDI contribute to the achievement of Vietnam's sustainable
economic development goals for the period 1988 - 2017?
- What is the proportion of contributions and correlations between FDI
and other economic sectors in the economy?
- Orientations and solutions to link FDI to sustainable economic
development of Vietnam by 2025 with a vision to 2035?
6. Method and process of research
6.1. Research Methods
To perform research tasks, the dissertation uses a combination of several
research methods:
- Method of document study: To collect and study documents and
scientific works in the country and internationally related to research contents,
through searching at libraries, guidance of scientists, The accounts of the
scientific information pages provided by the Graduate School of Economics of
the National Economics University, scientific journals, journals and the
Internet... to classify, compare, evaluate, clarify the research gap.

- Statistical methods and data collection: exploitation and use of primary
data sources (exploiting data collected from 11,925 sample of FDI enterprises
in 2015 by the General Statistics Office) and related secondary data to topics
from the official information channels in the country and internationally such as
General Statistics Office, Ministry of Planning and Investment, General
Department of Customs, World Bank ... to analyze and compare the impact of
FDI compared Domestic enterprises, among different forms of FDI enterprises,
and between Vietnam's FDI and FDI of some countries in order to assess the

- Descriptive statistics method to compare the situation, contribution of FDI
between phases and associated with the objective of economic development over
time; Comparing the contribution of FDI to the contribution of domestic
investment; the level of connectivity between FDI and the rest of the economy.
- The method of analysis and comparison: based on the source of data to
assess the status of FDI with the objective of sustainable economic development
of Vietnam through analysis of the contribution of FDI; Comparing the
correlation between FDI and other economic sectors and between different types
of FDI enterprises through some indicators such as capital, technology, labor,
budget, export and import; Comparing some indicators of FDI in Vietnam with
some countries in the region at similar stages of development; Analyze some
international experiences to draw lessons for Vietnam.
- The method of correlation and forecasting: using some statistical analysis
and forecasting software such as OLS and ARIMA to test the correlation
between FDI and some economic indicators and FDI forecast to 2025, such as
the relationship between FDI and GDP, total investment, import and export.
6.2. Research process
Study overview

Build a set of research
indicators

Analyze and evaluate the
status of FDI with the
objective of sustainable
economic development
Proposing directions and
solutions to linking FDI with
the objective of sustainable
economic development

Identify the research gap and the framework
for analyzing FDI with a view to sustainable
economic development
Indicators for sustainable economic
development and analytical frameworks for
FDI with the objective of sustainable economic

Determining the contribution of FDI to
achieving the goals of sustainable economic
development

Orientations and solutions have scientific
basis and conditions of implementation


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Step 1: Based on an overview of domestic and foreign research related
theses to define the framework for FDI analysis with a view to sustainable

economic development and research gaps.

( 3 ) Using OLS methodology, the model assessing the impact of FDI on
GDP, domestic investment and export of Vietnam in the period 1995-2017. The
result show that: consider in correlation multivariate relative, effect FDI to GDP
through exports; FDI has positive correlation with GDP, domestic investment
and export when considering separately correlated with each indicator;
comparring with some of the proposed indicators of the dissertation indicates
that although FDI has not reached the expectation of Vietnam's objective of
sustainable economic development, but still plays an important role for the
economy.

Step 2: Build the analytical framework and the set of indicators to
measure the contribution of FDI to the objective of sustainable economic
development.
Step 3: Evaluate the real situation of FDI with the objective of sustainable
economic development of Vietnam over time through correlation with other
economic sectors, compare with the set of indicators and experience of some
countries.
Step 4: Analyze opportunities, challenges, issues to propose some
solutions and proposals to increase the contribution of FDI to the goal of
sustainable economic development.
7. New contributions of the dissertation
7.1. New contributions in term of education and theory
The dissertation builds the theoretical framework for FDI with the
objective of sustainable economic development and applies to the Vietnam’s
condition; To summarize and study in depth the international experience
comparing the current situation in Vietnam for FDI with objectives of
sustainable economic development through the periods:
( 1 ) The impact of FDI on the objective of sustainable economic

development is conditional, depending on the level of economic development,
availability of infrastructure, human resources - especially highly quality human
resources, institution and regulatory policy instruments, effective FDI
management. Besides the positive effects, FDI potential risk of unsustainable
for the Host Country Economic.
( 2 ) Through study experience in some countries; Actual contribution of
FDI to Vietnam’s economic development objective in the period 1995-2017,
the dissertation assesses through indicator system, including: contribution ratio
in total investment; share of GDP; efficient use of capital; type of enterprise;
quality of the transfer technology; proportion of imports and exports shows that
FDI in Vietnam does not fully meet the objective of sustainable economic
development.

( 4 ) The dissertation also shows that the quality of FDI in recent years
has significantly improved, but has not reached the proposed sustainable level
according to international experience, such as not stabilizing the major balances
of the economy, maintaining and developing sustainably the factors such as
capital, labor, technology, resources, increased productivity, efficiency in using
resources, or increasing contribution of the TFP; transferring effectively model
and structure economic, enhancing quality, competitiveness, sustainability of
the products, promoting participation, penetration into the global value chain,
high value added; as well as the spillover effects of FDI on the rest of the
economy…
7.2. New findings and recommendations taken from the research and
investigation of the doctoral dissertation
The dissertation affirmed that FDI is an important part of the economy,
contributing to the country’s reform and development in the period 1988-2017.
However, the overall assessment in comparison with some countries, as well as
the comparison between the contribution of economic sectors, FDI is not really
sustainable, contributing not corresponding to potential, not meet the goal of

sustainable economic development. In order to ensure that FDI is linked to the
goal of sustainable economic development, Vietnam should be ready for certain
conditions.
The dissertation proposes some solutions to link FDI to Vietnam's
sustainable economic development goals by 2025, vision 2035: (1) To construct
and deploy as soon as possible the new generation FDI strategy; (2) To amend,
supplement and perfect the system of legal documents; (3) To amend,
supplement, finalize and publicize the plan with scientific and practical basis;


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(4) To focus on infrastructure development of special economic zones, regions
and localities with comparative advantage to facilitate effective FDI; (5)
Continue reforming administrative procedures , improving state management
efficiency; (6) To attach importance to investment in the development of highquality human resources; (7) To renovate modes, raise the quality and
efficiency of advocacy and investment promotion, and promote the role of
associations and organizations providing FDI support service, select carefully
high quality FDI.
The dissertation is a scientific basis for evaluating FDI with the objective
of sustainable economic development of Vietnam and other countries with
similar conditions, which is the scientific basis to help managers understand the
orientation and formulate strategies, complete the policy to link FDI to
Vietnam’s objective of sustainable economic development by 2025, vision to
2035. The proposed indicators are the basis for the assessment of the success of
the policy and the practice of FDI with the goal of sustainable economic
development in each period, poses the requirements to continue research to
complete the indicators in the next study.
8. Structure of dissertation
In addition to the Introduction, Conclusion, List of Abbreviations, List of
Tables, Figures, Reference Lists and Annexes, the dissertation is presented in

three chapters:
Chapter 1: Theory of Foreign Direct Investment with the objective of
Sustainable Economic Development and International Experience.
Chapter 2: The Situation of Foreign Direct Investment with the Vietnam’s
objective of Sustainable Economic Development, 1988-2017.
Chapter 3: Orientations and solutions to link foreign direct investment
with the Vietnam’s objective of sustainable economic development up to 2025,
vision 2035.

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CHAPTER 1
THEORY FOR FOREIGN DIRECT INVESTMENT WITH
THE OBJECTIVE OF SUSTAINABLE ECONOMIC DEVELOPMENT
AND INTERNATIONAL EXPERIENCE
In this chapter, the author concentrates on clarifying the theory of FDI as
an important resource for achieving the objective of sustainable economic
development; study international experience and propose some indicators to
assess the economic sustainability of FDI.
1.1. Theory of foreign direct investment
1.1.1. The concept of foreign direct investment
Can be generalized, FDI is the investment of individuals, companies
(mostly transnational and multinational companies) to build overseas branches
and subsidiaries and to own all or a whole. each part of that base. This is an
investment in which a foreign investor contributes a sufficient amount of capital
to produce or provide services and allows them to directly participate in the
management and administration of investment objects. The goal is to gain
higher profits through the implementation of overseas business operations.
1.1.2. The causes and main forms of FDI
FDI is an indispensable trend in international integration and trade and is
carried out in various forms, depending on the orientation of the receiving

country and the choice of the investor.
Some main forms of investment: joint venture enterprises; 100% foreign
invested enterprises; BOT, BTO and BT contracts; Business Cooperation
Contract; parent company - child ...
1.2. Theory of the goal of sustainable economic development
1.2.1. Economic growth and development
Economic growth can be understood as the increase in the production of
goods and services, or the increase in the size of the economy over a given
period of time, which is often reflected in the percentage increase of the gross
domestic product (GDP) after the adjustment of inflation, or the actual increase
in per capita income.


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Economic development is the process of growing up, advancing all
aspects of the economy. It includes both economic growth in terms of quantity
and quality, and structural integrity; Renovation of economic institutions in line
with the development stage; The quality of human life is raised both physically
and mentally and towards a healthy living environment.

accompanied by a strategy of economic development in a certain period and
realized, implemented through specific programs and plans.

Economic growth is the basis, the basic condition for economic
development. In contrast, economic development encompasses both economic
progress and social progress, creating a solid socio-economic base to achieve
future economic growth.

1.2.2. Sustainable development and sustainable economic development
Sustainable development is a way of socio-economic development in
order to better address the relationship between economic growth, social issues
and environmental protection with the aim of better meeting the needs of the
present generation and not hinders the fulfillment of the needs of future
generations. In other words, it is a harmonious development in terms of
economy, culture, society and the environment in all generations in order to
continuously improve the quality of human life.
Sustainable economic development is a state of development of an
economy in the direction of reducing the value of low added value to high
added value in accordance with natural and social conditions. of the country,
towards the structure of information economy, knowledge economy structure;
To exploit effectively and bring into full play the comparative advantages and
competitive advantages of the domains and professions where the country has
advantages. Sustainable economic development also ensures that the economy
does not fall into foreign debt and that the balance of payments is not overdeficit causing macro-economic instability. Sustainable economic development
in the context of international integration is also reflected in the competitiveness
of the economy in general as well as each business, each product in particular.
1.2.3. The goal of sustainable economic development
The goal of sustainable economic development is a sustainable goal that
needs to be achieved for economic development over a given period of time,
usually five years, ten years, sometimes even 15 years, or even 20 years, even
longer; is a set of indicators related to the future economic development of an
economic entity. The goal of sustainable economic development is often

1.3. Contribution of FDI to sustainable economic growth
FDI contributes to the goal of sustainable economic development that
foreign investors deploy and operate investment projects that meet the
requirements of the objective of sustainable economic development of the
recipient country voluntarily. or as required by the policy instruments of the

receiving country. The review and assessment of FDI attached to the objective
of sustainable economic development can be made through the impact
assessment, the contribution of FDI to the achievement of objectives,
stabilization of major balances of the economy; To ensure the sustainable
development of such factors as capital, labor, technology, natural resources ...;
increased productivity, efficient use of resources, or increased contribution of
productivity to aggregate factors; the transformation of the model, the economic
structure in an efficient manner, the improvement of the quality,
competitiveness, sustainability of the product, the promotion of participation,
penetration into the global value chain, high value added; as well as the
spillover effects of FDI on the rest of the economy.
1.4. Some criteria assess the impact of FDI on the target of
sustainable economic development of receiving countries
1.4.1. Content: Sustainable investment partner; technological
sustainability; Sustainable in form of investment; Sustainable in the field,
industry, investment products; Sustainability in regional, local and product
linkages; Sustainable in some key indicators.
1.4.2. Some specific indicators: Through the study of some countries'
experiences and FDI practices in Vietnam from 1988 to 2016, a number of
reference indicators assessing the linking of FDI with the objective of
sustainable economic development are discussed. Summary: KFDI <20% of total
social investment; Joint ventures account for over 50% of KFDI; 100% foreign
invested enterprises <50% KFDI; %GDPFDI>% KFDI; ICORFDI <3.5; modern
technology transfer quality, suitable.
1.5. A number of international experiences on FDI aiming at
sustainable economic development
The experience of South Korea, Malaysia and China shows that
preferential policies and investment support instruments need to be used to

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target target investors and move towards priority areas, with the first To attach
importance to the joint venture in order to study and raise the endogenous
capacity and promote the economic restructuring along the direction of
sustainability; The case of FDI expansion, at all costs, ineffective; FDI policy is
unclear and transparent; the inadequacies of law enforcement and the
unreasonableness of some preferential policies ... lead to undesirable results
which directly threaten the goal of sustainable economic development.
1.6. Some conditions linking FDI to the objective of sustainable
economic development of host countries: Having policies to support investors
effectively reduce costs and ensure profitable business in case investors choose.
Choose a sustainable investment plan. In addition, it is necessary to set up a
management, monitoring and enforcement mechanism to ensure that investors
invest in sustainable development, as well as to prevent acts of non-observance
of state regulations, Investors deploying quality non-quality projects in
localities. In addition, it is necessary to enhance the role and effectiveness of
communication, investment promotion, the operation of associations and
investment support organizations:
- Having a clear and transparent legal system and ensuring the orientation
of sustainable economic development for FDI.
- To publicize and ensure the implementation of sustainable economic
development strategies in line with specific characteristics and competitive
advantages of each economy, region, locality, industry and product.
- To develop an integrated and synchronous infrastructure system to ensure
that investors operate effectively when choosing sustainable investment plans.
- Improving the efficiency and effectiveness of state management, while
ensuring that investors effectively implement the project while timely solving
difficulties, obstacles arise, creating confidence as well as self-consciousness. in
ensuring sustainable investment.
- Ensurring quality as well as availability of resources to meet the

requirements of investors, especially high quality human resources.
- To renovate modes, raise the quality and efficiency of the work of
mobilization and investment promotion, promote the role of bridges of
associations and investment support service organizations, pepper, attaching
importance to investment quality instead of quantity.

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CHAPTER 2
THE SITUATION OF FDI WITH VIETNAM'S SUSTAINABLE
ECONOMIC DEVELOPMENT, 1988-2017
In chapter 2, the author concentrates on analyzing and evaluating the
situation of FDI in Vietnam, the results achieved and limited limitations in linking
FDI to Vietnam's economic development goals as well as in the correlation
Compared with other sectors of the economy to draw practical lessons.
2.1. The objective of sustainable economic development of Vietnam
Sustainable economic development targets are set only when the
economy reaches a certain level of development. Together with the process of
innovation, building and developing the socialist-oriented market economy,
developing and implementing socio-economic development strategies in each
period, the objective of sustainable economic development of Viet Nam is
gradually being shaped and concretized through the evaluation criteria.
The objectives set out in the socio-economic development strategy for the
period 1991-2000 focused on poverty reduction, out of crisis, economic
stabilization. Sustainable economic development has not been set up; In the period
2001-2010, the sustainability aspects were set. However, at this stage, the main goal
is to strive out of underdevelopment and to lay the foundations for the next phase;
Vietnam's sustainable economic development goals are formally reflected in the
Vietnam Sustainable Development Strategy for 2011-2020. However, indicators
such as ICOR, TFP, CPI, Government debt ... lack specific quantitative measures.
The goal of Vietnam's sustainable economic development continues to be

reflected in the Vietnam Report 2035, which seeks to a prosperous, creative,
equitable and democratic Vietnam by 2035.
2.2. FDI in Vietnam, period 1988-2017
As of 20/12/2017, the country has 24,748 active FDI projects, from 125
countries and territories, with a total registered capital of nearly $ 319 billion
(including capital increase). FDI has been present in 63/63 provinces and cities of
Vietnam; invest in 19/21 branches in the national economic classification system.
FDI has always been a dynamic development area and played an active role in the
process of international economic integration and development in Vietnam.


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FDI contributes significantly to the achievement of Vietnam's socioeconomic development objectives and strategies in each period, accounting for
a significant proportion of GDP, leading to exports, as well as contributing
positively to the budget. , create jobs and stable income for employees. From an
average of 6.3% of GDP in the period 1991-1995, FDI increased to 10.3% of
GDP in the five years 1996-2000. In the period of 2001-2005, the average
proportion was 14.6%. In the period of 2006 - 2010, FDI contributed over 17%
of GDP. This figure for the period 2011-2015 is 17.14% GDP, of which, in
2015, this sector contributes approximately 18.07% of GDP. This is a significant
contribution to the Vietnamese economy given Vietnam's low middle-income
status. However, with an investment of 22.6% of the total social investment in
2011-2015, only contributing to 17.14% of GDP shows a lack of sustainability and
no technological advantage. , market, management skills ... of FDI.
2.3. The impact of FDI on sustainable economic development of Vietnam
2.3.1. These achievements
Firstly, FDI contributes significantly to the growth and development of
the economy, contributing to the GDP increasing year by year.
Secondly, FDI is an important source of additional capital for the
development of the whole society and economic growth of the country.

Thirdly, increasing export turnover, contributing to expanding
international markets alongside traditional markets, changing export structure
towards increasing the proportion of processed products; contributing
significantly to the expansion of external relations, active and active economic
integration with the region and the world of Vietnam.
Fourth, FDI has a positive impact, promoting the restructuring of sectors
in the economy as well as the structure of each branch in the direction of
industrialization and modernization.

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Seventh, FDI contributes significantly in creating jobs for workers.
Eighth, FDI contributes to building, consolidating and perfecting the
system of policies and laws on economics, raising the quality of the contingent
of cadres and civil servants, ensuring the construction and development of a
market economy. socialist orientation.
2.3.2. Limitations
Firstly, the contribution of FDI to the Vietnamese economy reveals many
unstable factors which have not shown the expected positive role. In addition,
with a significant proportion of capital and investment, while FDI is dominated
by 100% foreign-invested enterprises, there are high risks.
Secondly, it is not sustainable in the orientation and selection of
investment partners.
Thirdly, not sustainable in the import and export structure.
Fourth, the goal of attracting technology (high technology, source
technology), technology transfer for FDI has not reached the requirements.
Fifth, the spillover effects of FDI on other sectors of the economy are limited.
Sixth, most projects in FDI quality are not high, average project size is
small, disbursement rate is lower than required.
Seventh, the living standard of workers in FDI is not high, and strikes and
strikes tend to increase.

A number of FDI enterprises have applied sophisticated transfer pricing
techniques, resulting in false losses, real interest, and budget losses, leaving
most Vietnamese parties to withdraw from joint ventures. 100% foreign capital.
2.3.3. Causes of the results and limitations
2.3.3.1. Causes of the results
- First of all, it is the policy of reform, opening up, attracting and
managing FDI.

Fifth, FDI contributes to promoting the transfer of technology in terms of
machinery, equipment, knowledge and management experience, which in turn
has a bearing on improving the technological level in the country.

- Vietnam has step by step improved the legal system and market
economy institutions, reformed administrative procedures, improved the quality
of the contingent of cadres and civil servants, built, perfected and committed to
implementing standards. Regulate the economy with the international community.

Sixth, the spillover effects of FDI on other economic sectors in the
economy.

- Vietnam maintains stable politics, national defense and security, which
is considered a safe investment area.


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- The direction and management of the Government, the ministries,
branches and local administrations are more active.
- Investment promotion activities have been improved.
2.3.3.2. Causes of the limitations
Firstly, the legal system and policies on investment, though amended and

supplemented, have not yet been uniform and inconsistent; The conditions to
ensure the linkage and efficient operation of the FDI sector such as
infrastructure, human resources, the development of domestic economic sectors,
supporting industries and intermediary services have not met. The demand leads
to low capital absorption, reduced efficiency and contribution of the FDI sector.
Secondly, planning is not good, lack of a master plan, an effective strategy, a
long-term vision for the economy in general and the FDI sector in particular.
Thirdly, the ineffectiveness of policy tools in selection and management
of FDI leads to the existence of many poor quality projects that waste resources
and environmental pollution, not to mention most of the projects are models.
Enterprises with 100% foreign capital, many joint ventures also transformed into
100% foreign capital. This has led to problems of manipulation, market
manipulation, transfer of prices, tax evasion, failure of access to, learning and
Master the technology transfer, improve the capacity of Vietnamese enterprises ...
Fourth, there are some shortcomings in the decentralization of investment
management. The decentralization of management is right, however,
decentralization does not take into account the management capacity of each
locality, the management characteristics of each branch; The lack of
mechanisms for coordination, inspection, supervision, lack of sanctions for
violations related to decentralization ...
Fifth, the promotion of investment is not really suitable, effective is not
high. The overall management and coordination of investment promotion
activities of the whole country has not been properly paid attention.
Sixth, lack of coordination between ministries, departments, localities.
The organizational structure, staffing and administrative procedure reform have
not met the objective of sustainable economic development.
In addition, the activities of the associations and support service organizations
are still formal, not promoting the role of bridges between the state and enterprises,
as well as the provision of investment support services. effective.

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CHAPTER 3
ORIENTATIONS AND SOLUTIONS TO LINK FOREIGN DIRECT
INVESTMENT WITH VIETNAM'S OBJECTIVE OF SUSTAINABLE
ECONOMIC DEVELOPMENT UP TO 2025, VISION 2035
In chapter 3, the author analyzes the opportunities, challenges and
forecasts for FDI prospects in Vietnam in the coming years. Based on the
proposal of FDI orientation in the coming time, the author proposes some
solutions to ensure FDI associated with the goal of sustainable economic
development of Vietnam until 2025.
3.1. Opportunities, challenges and prospects for FDI into Vietnam
3.1.1. FDI’s opportunities in Vietnam
Vietnam has comparative advantages in geographical location, natural
conditions, availability of resources for development investment, economic and
political stability.
Vietnam has signed many trade and investment agreements, including new
generation agreements such as TPP, CPTPP and EVFTA. Vietnam is rich in
natural resources, including land, minerals, forest resources, marine resources.
Vietnam has a plentiful human resource, which is in the period of golden
population, industrious and creative in nature, able to adapt quickly to new
technologies, especially relatively cheap labor. Comparatively, foreign
investors are very interested
Vietnam is considered one of the countries with the most stable political
situation in the context of the situation in the world and the region has many
instabilities in the past years, as well as the success in investment in production
and business. High-tech FDI enterprises in Vietnam will be important
incentives for corporations, transnational corporations and investors to invest,
expand investment projects, transfer technology transfer, investment in research
and development in Vietnam in the future, will contribute to increase the
sustainability of the FDI sector.

Over time, Vietnam has timely issued, amended, supplemented and
amended the Law on Investment, the Law on Enterprises and the system of
laws and regulations relating to investment increasingly consistent and


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consistent with. international; To continue improving the market mechanism,
reforming administrative procedures, financial and banking systems; overcome
weaknesses in infrastructure, develop supporting industries; The importance of
improving the quality of the cadre and civil servants in the investment sector has
contributed to the improvement of the quality of Vietnam's investment
environment and business, and to promoting the efficiency and competitiveness of
the economy. This is a great opportunity for investment in the FDI sector and it is
receiving more and more attention from investors from developed economies.

improving the quality, efficiency and ability of the FDI sector to integrate with
the goal of sustainable economic development.

3.1.2. Challenges of FDI in Vietnam
Firstly, the challenge of tightness, transparency, uniformity of the law.
Secondly, the challenge in regulating the rational investment structure for
FDI is lacking and weak in the direction and regulatory tools of Vietnam.
Thirdly, the lack of infrastructure and the lack of systematic and
synchronous coordination are also a major barrier to directing high-quality FDI
flows into Vietnam.
Fourth, challenges in the management and administration of the State.
Fifth, the challenge of human resources.

Sixth, the challenge in competition, improve the efficiency of FDI with
other countries.
Seventh, the risk of FDI sector receiving and consuming low technology
from other countries.
Eighth, the risk of losing market share and losing market.
Ninth, Challenges in advocacy and investment promotion.
3.1.3. Vietnam's FDI prospects to 2025 with a vision to 2035
Prospects for development of Vietnam's foreign direct investment sector
in the coming time, with objectives and orientations serving the cause of
national industrialization and modernization, renewal of the growth model ,
economic restructuring ..., aiming at sustainable economic development, in the
context of the world economy and the region still in difficult situation, facing
many challenges. However, based on the achievements of the sector in recent
years and the efforts and close co-operation of the Government, levels and
sectors in recent times, Vietnam still has the prospect of expanding, developing,

3.2. Orientation to attract FDI to 2025
Orientations for the development of the sector with foreign direct
investment in the coming time must be oriented towards the selection and
improvement of quality, contributing to the economic restructuring process and
the renewal of the growth model. depth; focus on quality, efficiency and
sustainability; To shift the labor structure towards increasing the percentage of
technically skilled laborers; transfer and apply advanced science and
technology, technical process and management skills suitable to each
specialized branch or project; To attach importance to attracting a number of
key sectors and Vietnam's strengths, such as tourism, agriculture, aquaculture,
sea transport, precision engineering, electronics, information technology and
high technology. . The experience of Korea, Malaysia, minimizing the followup of product structure and model of FDI development of China, to reduce the
competitive pressure as well as avoid the risk of receiving technology backward
from the country.

3.3. The solution to FDI with the goal of sustainable economic
development of Vietnam until 2025
An economy that is open, transparent and efficient, with a stable
economic, political and social base, and a well-developed economic and
technical infrastructure, with the availability of resources, Improved policies,
laws and regulatory tools, management, with effective FDI orientation and
strategy ... will create an attractive and effective investment environment while
ensuring FDI to meet the target. a sustainable economic development of a
country.
3.3.1. Develop and implement the next generation FDI strategy in line
with Vietnam's orientation, strategy and objective for sustainable economic
development.
3.3.2. Continue reviewing, revising, supplementing and perfecting the
system of legal documents in line with the orientation and strategy for
sustainable economic development of Vietnam and the new generation of
FDI strategies.


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3.3.3. To amend, supplement, finalize and publicize the planning on
FDI by branches, localities and territories

CONCLUDE

3.3.4. To concentrate on developing infrastructures of special economic
zones, regions and localities with comparative advantages to facilitate
efficient operation of FDI.

3.3.5. To continue reforming administrative procedures and raising the
efficiency of state management

After 30 years of opening up Vietnam and integrating into the regional
and global economy, FDI has always been a driving force, playing an active
role in promoting economic growth and international integration of Vietnam.
By the end of 2017, Vietnam has attracted over 24,700 FDI projects from more
than 100 countries and territories. FDI contributes about 18% of GDP, 23% of

3.3.6. Investment in human resource development

total social investment, over 40% of industrial production value, more than 70%

3.3.7. Some other solutions

of export goods and services, creating direct jobs for over 2 million laborers.

3.3.7.1. To renovate the mode of, raise the quality and efficiency of,
mobilize and promote investment
3.3.7.2. Promote the role of a bridge between associations, organizations
supporting services FDI

However, considering that an important resource contributing to the objective
of sustainable economic development, FDI has shown many limitations:
- The contribution of FDI has revealed many unstable factors, low
economic efficiency, budget contribution and incomplete GDP, which do not
reflect the expected benefits.
- The structure of import and export is not sustainable, mainly exported
goods are processed and assembled, the ratio of exports is overwhelmed
domestically and the proportion of imported raw materials is very high.

- Most of the technology used in FDI projects is medium and backward
technology, low productivity is not suitable with the goal of sustainable
economic development.
- The spillover effect and the relationship between FDI and domestic
economy as well as among FDI enterprises are relatively low and lacking.
- The quality of many projects is not high, the average size of projects is
small, the rate of disbursement is low, not meeting expectations and objectives
of sustainable economic development of Vietnam.
- The working life of the FDI enterprises is not high, especially for
enterprises with 100% FDI capital, disputes and strikes tend to increase.
Recent FDI has not contributed to the potential and failed to meet the
expectation of becoming an important resource for Vietnam's sustainable
economic development. Low level of economic development: Conditions for


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ensuring effective linkage and efficient operation of infrastructure such as

In the next period, to take advantage of the opportunity to reduce the

infrastructure, high quality human resources, supporting industries and

challenge of attracting high-quality FDI, so that FDI is indeed an important

intermediary services. bridge of the investor; the legal system is not

resource to serve and contribute to the goal of sustainable economic

synchronous, lack of control tools, technical barriers to screen projects and

development. A number of measures should be taken to improve the

investors; Building and managing FDI planning is not good, lack of focus,

competitiveness of the investment environment, improve the institutions and

focus, lack of forecast; linking branches and restricted areas; Lack of

tools for managing and regulating the attraction and implementation of FDI

mechanisms for coordination, inspection and supervision in the decentralization

projects effectively. Effect: improve the legal system; Finalizing and

of investment activities; The organizational structure and reform of

publicizing the planning; Developing infrastructure in some regions and

administrative procedures in the field of investment have not met the

localities with comparative advantages; reforming administrative procedures,

requirements towards the objective of sustainable economic development…

improving the efficiency of state management of FDI attraction and

Experience of some countries shows that FDI should become an

implementation; human resource development; To renovate modes, raise the

important resource for sustainable economic development. It is suitable with the

quality and efficiency of the work of mobilizing and promoting investment;

historical situation and changes very flexibly: Continuously reviewing,

promote the role of associations and organizations related to FDI ...

formulatting, amending, supplementing and perfecting mechanisms, policies,
laws, In order to attract FDI and integrate with sustainable economic
development, it is necessary to have strategies to encourage investment, build
and promote internal resources with a number of fields, industries, products,
etc. the backbone of the economy, with the support of mechanisms, policies and
external resources, to build, form a system of business National strong enough;
To attach importance to the development of auxiliary industries, branches with
comparative advantages and competitive advantages; Consider and select the
optimal options for investors, between FDI attraction and loan guarantee, to
give opportunities for domestic investors, joint ventures, 100% foreign
investment or other forms of production, business different from each project,
each industry, each product ...; strengthening domestic economic and
infrastructure conditions, modernizing financial instruments, improving
instruments for managing and operating the stock market, creating a sense of
attractiveness and trust for investors. foreign investment; To attach importance
to, and raise the quality of, investment promotion activities.


LIST OF THE PUBLISHED WORK RELATED

TO THE DISSERTATION:
1. Nguyen Tien Dzung (2009), "Challenges of Vietnam in attracting
foreign direct investment after joining WTO and solutions", Economy and
Forecast Review, Vol. 10/2009.
2. Nguyen Tien Dzung (2011), "Attracting Foreign Direct Investment
in Steel Industry", Economy and Forecast Review, No. 22, November
2011.
3. Nguyen Tien Dzung et al. (2012), "PPP - Vietnam ready?",
Economy and Forecast Review, No. 8, April 2012.
4. Nguyen Tien Dzung (2015), "FDI inflows with the goal of
sustainable economic development", Socio-Economic Information and
Forecast Review, No. 119, November 2015.
5. Nguyen Tien Dzung, Nguyen Thuong Lang (2016), "Foreign
direct investment in Vietnam: the need to overcome the lack of harmony
and economic sustainability", Proceedings of the National Science
Workshop Harmonized Growth: Access from an Enterprise perspective,
Labor Publishing House, Hanoi, October 2016.
6. Nguyen Tien Dzung, Nguyen Thuong Lang (2016), "Direction to
overcome some issues in foreign direct investment in Vietnam", SocioEconomic Information and Forecast Review, No. 131, November 2016.