Solutions to Enhance Foreign Direct Investment Attraction to Vietnam in the Digital Transformation Phase

Abstract

The reality shows that developing countries often face capital and technology shortages, outdated industrial production techniques, small-scale production, low labor productivity, low per capita GDP, low GDP growth rates, low savings rates, underdeveloped foreign trade with a trade deficit, exporting raw materials and semi-processed goods, a development gap compared to advanced countries, and dependence on developed countries in terms of trade, technology, foreign aid, and expertise. This is referred to as the "vicious circle" of poverty by Paul A. Samuelson, which requires an external boost. According to him, this boost includes capital, technology, expertise, etc. Therefore, attracting foreign direct investment (FDI) is considered an effective solution for the socio-economic development of developing countries. Consequently, these countries pay special attention to studying the factors that influence FDI attraction policies to timely adjust their policies to optimize FDI attraction and serve the process of economic and social development. Evaluate the attraction of foreign direct investment and examine the factors influencing foreign direct investment attraction. Based on that, propose solutions to enhance the attraction of foreign direct investment in the current phase.