chapter  6
29 Pages

The changing face of foreign direct investment management in Vietnam

WithClemens Bechter, Chris Rowley, Katharina Kühn, Oliver Massmann

This chapter describes Foreign Direct Investment (FDI) growing role in Vietnam. There are several aspects to the critical area of the management of FDI. These include those concerned with the role of FDI, together with its impact and importance, growth and levels, both promised and actually delivered. In terms of sources of FDI Asian countries contribute the lion's share of FDI into Vietnam. FDI has, thus, been a major driving force for both economic transformation and poverty reduction and played a major role in the industrialization process. Changes undertaken following membership of the World Trade Organization (WTO) have affected a wide number of areas in relation to FDI, such as trading. The conditions for FDI entry are laid out in the LOI and its implementing decrees, in sectoral laws and regulations, and in the WTO schedule on services and legal regulations on mergers and acquisitions.