Attracting Foreign Direct Investment and FDI's Impact on Economic Development in Vietnam

Abstract

Foreign direct investment (FDI) has played an important role in boosting Vietnam's economic growth with great contributions in terms of several aspects. Vietnam has recently signed in various international agreements and treaties related to global integration opening hopeful opportunities to attract FDI into Vietnam in the next period of time. However, attracting FDI also has faced several threats from both inside and outside environment. The relationship between Foreign Direct Investment and economic development also has been increasingly paid attention by both developed and developing countries. FDI is not only an important source of capital, complements domestic private investment, but FDI projects also have created more new job opportunities.. This paper examines this issue by applying the bounds testing (ARDL) approach to cointegration for the period from 2010 to 2020 in Vietnam.