Fdi in Vietnam

Topics: Economics, Investment, Planned economy Pages: 23 (7124 words) Published: August 7, 2013
Delaunay and Torrisi: FDI in Vietnam

INDIA, CHINA AND AMERICA INSTITUTE 1549 CLAIRMONT ROAD, SUITE 202 ● DECATUR, GA 30033 USA WWW .ICAINSTITUTE.ORG

FDI in Vietnam: An Empirical Study of an Economy in Transition Christian Delaunay & C. Richard Torrisi
Journal of Emerging Knowledge on Emerging Markets Volume 4 November 2012

Produced by The Berkeley Electronic Press, 2012

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Journal of Emerging Knowledge on Emerging Markets, Vol. 4 [2012], Art. 4

FDI in Vietnam: An Empirical Study of an Economy in Transition Christian Delaunay Bridgewater State University C. Richard Torrisi Suffolk University Journal of Emerging Knowledge on Emerging Markets Volume 4 November 2012

DI has grown rapidly in recent years in an increasingly integrated global economy until the recent financial and economic crisis spread globally. The emerging former Soviet-bloc countries of Central and Eastern Europe, Southeast Asia, China, and India have transitioned to market economies during the last twenty years stimulating global FDI flows which have increased more rapidly than any other international economic or financial transactions. Global FDI inflows in 1985 were estimated to be $53 billion, however, by 1990 aggregate FDI had reached $234 billion and data for 2008 indicate global FDI of $1.8 trillion i. Economic restructuring and liberalization in the major recipient and investing countries, global capital markets, and continued economic transition in emerging command economies strongly influenced investor behavior and strategy. Economic growth has been accompanied by greater political stability and the building of democratic and market institutions in many emerging economies. The acceleration of FDI through 2008 has been fueled by the increasing globalization of transnational organizations of their production networks, the policy liberalization of host countries regarding FDI in service industries and real estate growth in mergers and acquisitions, and the expanding investment opportunities in emerging markets and newly privatized sectors in both industrialized and developing countries.

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2012 JOURNAL OF EMERGING KNOWLEDGE ON EMERGING MARKETS ● WWW .ICAINSTITUTE.ORG

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http://digitalcommons.kennesaw.edu/jekem/vol4/iss1/4 DOI: 10.7885/1946-651X.1089

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Delaunay and Torrisi: FDI in Vietnam

FDI IN VIETNAM: AN EMPIRICAL STUDY OF AN ECONOMY IN TRANSITION

The economic and financial crisis, which developed in 2008, did not have an immediate significant negative impact of 2008 foreign direct investment flows. While loan and capital availability shrank in the U.S. in the latter part of 2007, and subsequently globally, companies took advantage of, on one hand, capital from various funds e.g. wealth and hedge funds, and , on the other hand, the depreciation of the US dollar throughout the year until end 2008. The global pattern of FDI throughout the period of this study has been dominated by OECD countries, particularly by the U.S. and the European Union. In 1989, the “triad” of the U.S. Japan, and the European Union accounted for approximately 77% of outward global FDI and by 2006, for about 65% of FDI inflows. In 2008, record inflows of FDI into developing nations were reported ($630 billion) but the “triad” still dominated both as a home and host nations of new FDI. The U.S. continued to be the largest as well as the preferred host country of FDI, receiving over $316 billion in 2008. As a result of the global financial crisis, global FDI flows declined significantly in 2009 and rose modestly in 2010. Much of the FDI inflows into non Triad host economies during this period were to BRIC countries, Brazil, Russia, India, and China, with their large and growing domestic markets. However, another grouping of developing countries which are attractive to foreign investors has recently received growing attention in the research and analysis of global FDI. The CIVETS, Colombia, Indonesia, Vietnam, Egypt, Turkey, and South...

References: 2012 JOURNAL OF EMERGING KNOWLEDGE ON EMERGING MARKETS ● WWW .ICAINSTITUTE.ORG
Produced by The Berkeley Electronic Press, 2012
FDI IN VIETNAM: AN EMPIRICAL STUDY OF AN ECONOMY IN TRANSITION
Vietnam”, ASEAN Economic Bulletin, 2002
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