Abstract:
This paper provides an overview of foreign direct investment (FDI) in Vietnam and reviews the current status (2009) of economic research on the determinants of FDI and its impacts on the economy. A regression analysis of the determinants of FDI spatial distribution across provinces points to the importance of market, labour and infrastructure in attracting FDI. Government policy as measured by the Provincial Competitiveness Index (PCI) however, does not seem to be a significant factor at the provincial level. Foreign investors from different source countries seem to behave differently in choosing the location of investment.
