ABSTRACT
This chapter investigates the evolution of the foreign direct investment (FDI) policy regime in Vietnam over the 20-year period of reforms (1986-2006) and of the other key elements of liberalization reforms which have a direct bearing on MNE entry and the performance of Foreign invested enterprises. It discusses the investment regime with particular emphasis on reviewing the initiative and reform of laws on FDI, the unification process of the Law on Promotion of Domestic Investment with the FDI law by adopting a new Law on Investment and other related documents. The chapter focuses on trade-related policy affecting the entry and effectiveness of FDI in Vietnam. It explains the account Vietnam's preparation and commitments as a member of the World Trade Organization. It reviews the process of SOE restructuring and privatization and the unification of corporate rules in 2000 and 2005 for all ownership types through issuance of new laws related to enterprises.
