Vietnam will target more value-added investments

2018 ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Real Estate ◽  
Labour Market ◽  
World Bank ◽  
Foreign Investment ◽  
Direct Investment ◽  
Economic Value ◽  
Value Added ◽  
Market Reform ◽  
Content Type

Subject Restructuring of foreign investment in Vietnam. Significance The Vietnamese government is drafting, with World Bank help, a new five-year foreign direct investment (FDI) strategy that aims to switch the development focus to projects with high economic value. Inflows surged by 44% in 2017, but much capital went to less productive sectors such as real estate. Impacts Though inflows should remain strong, Vietnam may seek to broaden its range of capital sources. Vietnam will be competing in similar industries as nearby countries and so may need a strategy to take market share. Hanoi is likely to eschew labour market reform.

Does foreign direct investment influence R&D activity in the host country? Evidence from Vietnam

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Van Ha ◽  
Mark J. Holmes ◽  
Gazi Hassan
Keyword(s):  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Direct Investment ◽  
Probit Model ◽  
Innovation Activity ◽  
Heckman Selection Model ◽  
Content Type ◽  
Domestic Firms ◽  
The Impact ◽  
Local Firms

PurposeThis study focuses on the linkages between foreign direct investment and the research and development (R&D) and innovation activity of domestic enterprises in Vietnam.Design/methodology/approachThe Heckman selection model approach is applied to a panel dataset of nearly 7,000 Vietnamese firms for the 2011–2015 study period to investigate the impact of foreign presence on the R&D of local firms through horizontal and vertical linkages. Probit model estimation is employed to examine how foreign investment influences the innovation activity of local companies.FindingsWhile there are a small number of firms carrying out R&D activities in Vietnam, foreign or joint domestic–foreign venture firms are less inclined than domestic firms to undertake R&D. Domestic factors that include capital, labor quality, location and export status of firm have a significant effect on the decision of domestic firms to participate in R&D activity. Only forward linkages and the gross firm output are found to have an impact on the R&D intensity of domestic enterprises, while other factors appear to have no significant influence on how much firms spend on R&D activities.Practical implicationsIn order to promote the R&D activity of domestic firms, policy should focus on (1) the backward linkages between local firms in downstream sectors with their foreign suppliers in upstream sectors, and (2) the internal factors such as labor, capital or location that affect the decisions made by domestic firms.Originality/valueGiven that foreign investment may affect R&D and innovation activity of local firms in host countries, the impact is relatively unexplored for many emerging economies and not so in the case of Vietnam. The availability of a unique survey on Vietnamese firm technology and competitiveness provides the opportunity to address this gap in the literature.

Fading FDI faces increasing challenges in Chile

2016 ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Direct Investment ◽  
Food Industry ◽  
Public Infrastructure ◽  
Sharp Drop ◽  
Content Type ◽  
Investment Promotion ◽  
The Government

Subject The fall in foreign investment last year. Significance The government has launched a new Foreign Investment Promotion Agency (APIE) to buck a sharp drop in foreign direct investment (FDI) last year. Breaking with the country's long-standing sector-agnostic approach, the agency will seek to attract investment to specific sectors, including energy, public infrastructure and the food industry. Impacts A more business-friendly administration in Argentina could potentially divert FDI from Chile. Critics of the new FDI regulation maintain that it will dampen inflows. Efforts to attract investment in food and mining services represent a bid to diversify from mineral exports.

scholarly journals Evaluation of interaction between chosen indicators of development of regions in Ukraine

Equilibrium ◽  
2019 ◽  
Vol 14 (2) ◽  
pp. 341-357 ◽  
Author(s):  
Elena Horská ◽  
Serhiy Moroz ◽  
Zuzana Poláková ◽  
Ľudmila Nagyová ◽  
Ihor Paska
Keyword(s):  
Foreign Direct Investment ◽  
Regional Development ◽  
Labour Market ◽  
Direct Investment ◽  
Value Added ◽  
Gross Regional Product ◽  
Association Agreement ◽  
Resident Population ◽  
Per Capita ◽  
Regional Product

Research background: In recent years, special attention has been given to the research direction regarding the study of economic, social, and demographic aspects of regional development. This direction is especially important for transition countries, including Ukraine. Despite that, there is a lack of research studies in which interdependencies of economic and demographic indicators of Ukraine’s regions are investigated. Purpose of the article: The paper assesses the relationships between the selected indicators of Ukrainian regions (export of goods per capita, foreign direct investment per capita, and the average resident population) and gross regional product per capita. Methods: Research results were compared in the periods before and during the military conflict in the eastern part of the country, based on regional data for 2010 and 2015. We used a multiple linear econometric model and tested multicollinearity. Findings & Value added: The analysis confirms that there is a positive correlation between export of goods and gross regional product and between foreign direct investment and gross regional product. That is why it is necessary to pay attention to the effective use of existing trade opportunities, especially within the framework of the Ukraine — EU Association Agreement, and to elaborate directions for further expansion of export activities. It is important to provide simpler and more understandable conditions in order to attract foreign investments in Ukrainian regions. Our study also shows that there is no influence of the average resident population on gross regional product. In many aspects, the interaction between demographic and economic components takes place through the labour market. This situation indicates that insufficient attention is given to regional employment issues, and the quantitative and structural imbalance is observed on the labour market at the regional level. In our opinion, to improve the situation, targeted activities should be elaborated on in the frame of regional development programmes.

EU scrutiny of Chinese investment will increase

2018 ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Direct Investment ◽  
Investment Decisions ◽  
European Council ◽  
Content Type ◽  
Chinese Investment ◽  
Exchange Of Information ◽  
European Parliament Elections ◽  
The Eu

Subject Investment screening in the EU. Significance The European Council is likely to vote in the autumn on a Commission proposal to introduce a foreign direct investment (FDI) screening mechanism in the EU. Although member states are divided on this issue, legislation is expected to be adopted by the end of the year. Impacts The proposed mechanism could complicate EU-China relations. It would enable more coordination and exchange of information on national foreign investment decisions. If the mechanism is not adopted by the end of the year, it could be significantly delayed due to the May 2019 European Parliament elections.

Does regionalism matter? Local politics and foreign direct investment in South Korea

2019 ◽  
Vol 8 (3) ◽  
pp. 295-306
Author(s):  
Dong-Hun Kim ◽  
Sunwoo Paek
Keyword(s):  
Foreign Direct Investment ◽  
South Korea ◽  
Foreign Investment ◽  
Direct Investment ◽  
Design Methodology ◽  
Local Politics ◽  
Political Stability ◽  
Foreign Investments ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this paper is to examine how political/authoritarian regionalism affects foreign direct investment (FDI) in sub-national states in South Korea. Design/methodology/approach This paper employs statistical analysis to examine the relationship between regionalism and FDI, along with historical description of regionalism in South Korea. Findings The analyses suggest that not only authoritarian regionalism influence foreign investment to the region but also political regionalism matters. Sub-national states with higher authoritarian regionalism receive less foreign investment while sub-national states with high political regionalism, which imply political stability, receive more FDI than others. Originality/value The paper examined how local politics influence foreign investments in South Korea, and suggests stronger decentralization will positively influence FDI in the future.

Vietnamese growth will attract more investment

2017 ◽  
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Market Reform ◽  
Export Growth ◽  
Severe Drought ◽  
Export Diversification ◽  
Content Type ◽  
External Position ◽  
Economic Outlook

Subject Vietnam economic outlook. Significance Vietnam's economy grew 6.2% last year, below the government’s 6.7% target, reflecting a severe drought, but still one of the world's fastest-growing economies. The expansion was supported by much faster export growth and higher foreign direct investment (FDI) than in the rest of East Asia. Policy has helped keep inflation and the currency reasonably stable while export diversification and trade liberalisation have improved the external position. Impacts More progress expanding the private sector and reforming state-owned enterprises would help Vietnam’s economic development. Vietnam’s dollar export growth has outpaced China and South-east Asia’s in recent years, and this will likely continue. The Trans-Pacific Partnership trade deal’s failure will likely mean less Vietnamese labour market reform.

Foreign investment may eschew capacity rises in Brazil

2017 ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Mergers And Acquisitions ◽  
Foreign Investment ◽  
Direct Investment ◽  
Multinational Companies ◽  
Content Type ◽  
Doing Business ◽  
Current Context

Subject The outlook for foreign direct investment. Significance Foreign direct investment (FDI) in Brazil has fallen in recent years, due in part to the more uncertain international outlook, but also to Brazil’s domestic crisis. Not only the amount but also the nature of FDI has changed, with a growing number of mergers and acquisitions (M&A). Most FDI flows have been directed to services, and China’s investments in Brazil, although incipient, are rapidly increasing. Impacts The strategies of multinational companies will largely influence FDI dynamics in Brazil. Reducing Brazilian bureaucracy in doing business may improve prospects for FDI. The current context will restrict the potential to use FDI to close infrastructure and technological gaps.

Philippine bid to boost foreign investment will stall

2019 ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Current Account ◽  
Foreign Investment ◽  
Direct Investment ◽  
Current Account Deficit ◽  
The Philippines ◽  
Gdp Growth ◽  
Content Type ◽  
Iron And Steel ◽  
Rice Farmers

Subject The Philippines's current account deficit and foreign investment problems. Significance The Philippines has just said July was the fourth consecutive month in which exports increased, but the current account deficit is nonetheless widening. Meanwhile, foreign direct investment (FDI) pledges are down. President Rodrigo Duterte’s government has identified four items of legislation to boost FDI, but they are struggling to make their way through Congress. Impacts GDP growth for 2019 will likely be close to 6%, but below the government’s targeted 6-7%. Recent declines in iron and steel imports suggest there will be bottlenecks in developing infrastructure. The hardship experienced by rice farmers following the introduction of a rice tariff could be a major issue in the 2022 elections.

Services will come to predominate in China's economy

2021 ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Value Added ◽  
Domestic Demand ◽  
Domestic Market ◽  
Content Type ◽  
Digital Currency ◽  
The City ◽  
China’S Economy

Significance China is one of the world’s top services exporters and the city of Beijing is emerging as a new high-value-added global services hub. China is also the largest net importer of services, and its vibrant domestic market offers opportunities for foreign services firms. Impacts Services will attract a rising share of China-bound foreign direct investment. The growing role of services will support the shift to domestic demand-driven growth. A large digital currency zone established in Beijing will drive innovation in this sector. The transnational nature of many services will spur greater openness in sectors that are not politically sensitive.

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