International Journal of

ADVANCED AND APPLIED SCIENCES

EISSN: 2313-3724, Print ISSN: 2313-626X

Frequency: 12

line decor
  
line decor

 Volume 7, Issue 8 (August 2020), Pages: 17-27

----------------------------------------------

 Original Research Paper

 Title: Scale of investment capital and performance of foreign direct investment: The case of Vietnam FDI enterprises

 Author(s): Nguyen Phuc Hai, Vu Ngoc Xuan *, Truong Nhu Hieu

 Affiliation(s):

 Center for Analysis, Forecasting and Sustainable Development, National Economics University, Hanoi, Vietnam

  Full Text - PDF          XML

 * Corresponding Author. 

  Corresponding author's ORCID profile: https://orcid.org/0000-0003-4364-9785

 Digital Object Identifier: 

 https://doi.org/10.21833/ijaas.2020.08.003

 Abstract:

This article is based on data of annual enterprise surveys and surveys on the use of technology in production by manufacturing enterprises to analyze the relationship between the scale of foreign direct investment capital and the performance of FDI enterprises in Vietnam during 2008-2019. The authors analyze data from 6200 FDI enterprises in the 2008-2019 period. Stata 14.0 and SPSS 20.0 software are used to process data. Statistical analysis shows that Vietnam's policies on attracting and using FDI capital need to focus on attracting high-invested projects, especially in services with high-tech knowledge and copper content. At the same time, there are measures to reduce the number of small-scale FDI projects investing in low-content market service industries or low-tech manufacturing industries. The results show that the trend of small FDI projects investing in Vietnam creates risks to the development of the FDI enterprises sector as well as in the implementation of Vietnam's sustainable development strategy during the period next time. 

 © 2020 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords: Foreign direct investment, Manufacturing enterprises, Technology enterprises

 Article History: Received 21 January 2020, Received in revised form 27 April 2020, Accepted 28 April 2020

 Acknowledgment:

This research is a product of the National Research Project KX01.28/16-20 "Developing foreign direct investment sector in implementing Vietnam's sustainable development strategy."

 Compliance with ethical standards

 Conflict of interest: The authors declare that they have no conflict of interest.

 Citation:

 Hai NP, Xuan VN, and Hieu TN (2020). Scale of investment capital and performance of foreign direct investment: The case of Vietnam FDI enterprises. International Journal of Advanced and Applied Sciences, 7(8): 17-27

 Permanent Link to this page

 Figures

 Fig. 1 Fig. 2 Fig. 3 Fig. 4 Fig. 5

 Tables

 Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7

----------------------------------------------

 References (24)

  1. Hunady J and Orviska M (2014). Determinants of foreign direct investment in EU countries–Do corporate taxes really matter? Procedia Economics and Finance, 12: 243-250. https://doi.org/10.1016/S2212-5671(14)00341-4   [Google Scholar]
  2. Jabri A and Brahim M (2015). Institutional determinants of foreign direct investment in MENA region: Panel co-integration analysis. Journal of Applied Business Research, 31(5): 2001-2012. https://doi.org/10.19030/jabr.v31i5.9417   [Google Scholar]
  3. Jabri A, Guesmi K, and Abid I (2013). Determinants of foreign direct investment in MENA region: Panel co-integration analysis. Journal of Applied Business Research, 29(4): 1103-1110. https://doi.org/10.19030/jabr.v29i4.7976   [Google Scholar]
  4. Jensen NM (2003). Democratic governance and multinational corporations: Political regimes and inflows of foreign direct investment. International Organization, 57(3): 587-616. https://doi.org/10.1017/S0020818303573040   [Google Scholar]
  5. Jouili T (2018). Determinants of foreign investment in maritime nations. International Journal of Advanced and Applied Sciences, 5(5): 43-47. https://doi.org/10.21833/ijaas.2018.05.006   [Google Scholar]
  6. Kumar N (1994). Determinants of export orientation of foreign production by US multinationals: An inter-country analysis. Journal of International Business Studies, 25(1): 141-156. https://doi.org/10.1057/palgrave.jibs.8490196   [Google Scholar]
  7. Kwiatkowski D, Phillips PC, Schmidt P, and Shin Y (1992). Testing the null hypothesis of stationarity against the alternative of a unit root. Journal of Econometrics, 54(1-3): 159-178. https://doi.org/10.1016/0304-4076(92)90104-Y   [Google Scholar]
  8. Lei HS and Chen YS (2011). The right tree for the right bird: Location choice decision of Taiwanese firms’ FDI in China and Vietnam. International Business Review, 20(3): 338-352. https://doi.org/10.1016/j.ibusrev.2010.10.002   [Google Scholar]
  9. Loree DW and Guisinger SE (1995). Policy and non-policy determinants of US equity foreign direct investment. Journal of International Business Studies, 26(2): 281-299. https://doi.org/10.1057/palgrave.jibs.8490174   [Google Scholar]
  10. Louail B (2019). Determinants of foreign direct investment in Arab countries during 1970–2016. International Journal of Advanced and Applied Sciences, 6(3): 102-110. https://doi.org/10.21833/ijaas.2019.03.015   [Google Scholar]
  11. Mina W (2007). The location determinants of FDI in the GCC countries. Journal of Multinational Financial Management, 17(4): 336-348. https://doi.org/10.1016/j.mulfin.2007.02.002   [Google Scholar]
  12. Mina WM (2012). The institutional reforms debate and FDI flows to the MENA region: The “best” ensemble. World Development, 40(9): 1798-1809. https://doi.org/10.1016/j.worlddev.2012.04.026   [Google Scholar]
  13. Moosa IA (2009). The determinants of foreign direct investment in MENA countries: An extreme bounds analysis. Applied Economics Letters, 16(15): 1559-1563. https://doi.org/10.1080/13504850701578819   [Google Scholar]
  14. Nnadi M and Soobaroyen T (2015). International financial reporting standards and foreign direct investment: The case of Africa. Advances in Accounting, 31(2): 228-238. https://doi.org/10.1016/j.adiac.2015.09.007   [Google Scholar]
  15. Parker S, Phan VQ, and Nguyen NA (2005). Has the US-Vietnam bilateral trade agreement led to higher FDI into Vietnam? International Journal of Applied Economics, 2: 199-223.   [Google Scholar]
  16. Pesaran MH (1997). The role of economic theory in modelling the long run. The Economic Journal, 107(440): 178-191. https://doi.org/10.1111/1468-0297.00151   [Google Scholar]
  17. Pesaran MH and Shin Y (1998). An autoregressive distributed-lag modelling approach to cointegration analysis. Econometric Society Monographs, 31: 371-413. https://doi.org/10.1017/CBO9781139052221.011   [Google Scholar]
  18. Pesaran MH, Shin Y, and Smith RJ (1999). Bond testing approach to the analysis of long run relationship. Journal of the American Statistical Association, 94: 621-634. https://doi.org/10.1080/01621459.1999.10474156   [Google Scholar]
  19. Rogmans T (2013). Location and operation mode decision making in the Middle East: A case study approach. Journal of Strategy and Management, 6: 190-206. https://doi.org/10.1108/17554251311322440   [Google Scholar]
  20. Tran TQ (2009). Sudden surge in FDI and infrastructure bottlenecks: The case in Vietnam. ASEAN Economic Bulletin, 26: 58-76. https://doi.org/10.1355/AE26-1E   [Google Scholar]
  21. Xuan V, Thu N, and Anh N (2020a). Factors affecting support services in small and medium enterprises: Evidence from Vietnam small and medium information technology enterprises. Management Science Letters, 10(2): 303-312. https://doi.org/10.5267/j.msl.2019.9.001   [Google Scholar]
  22. Xuan V, Thu N, and Anh N (2020b). Factors affecting the business performance of enterprises: Evidence at Vietnam small and medium-sized enterprises. Management Science Letters, 10(4): 865-870. https://doi.org/10.5267/j.msl.2019.10.010   [Google Scholar]
  23. Xuan VN (2020). Factors affecting foreign direct investment: Evidence at foreign technology enterprises in Vietnam. International Journal of Advanced and Applied Science, 7(4): 21-28. https://doi.org/10.21833/ijaas.2020.04.004   [Google Scholar]
  24. Zouita MS, Louail B, and Mameche Y (2019). The impact of the local SMEs sector on FDI and the mediating effect of IFRS adoption in developing economies: The case of Algeria. International Journal of Advanced and Applied Sciences, 6(11): 120-129. https://doi.org/10.21833/ijaas.2019.11.015   [Google Scholar]