Investment In Vietnam Research Articles

The Effect of Trade Openness on Foreign Direct Investment in Vietnam

The Effect of Trade Openness on Foreign Direct Investment in Vietnam

Regulations on PPP contracts in Vietnam: Status Quos and Solutions

PPP investments have been in practice in Vietnam for more than 20 years, yet, many shortcomings and constraints have been revealed. This paper analyzes applicable legal regulations on Public-private partnership contracts of investment in Vietnam, and demonstrates barriers encountered by parties, particularly private sector, including discrepancies and non-coherence among legal documents resulting in losses, wastes of resources; absence of standard agreements/ contracts making negotiations and contract signing hard to conclude; insufficient clarity in provisions about concessioning, and responsibilities, among others. The analysis, hence, suggests how to deal with the situation by amendments, supplements to provisions on the agreements between public and private partners.

An empirical study of the real effective exchange rate and foreign direct investment in Vietnam

Foreign direct investment (FDI) inflows to Vietnam have increased significantly in recent years. Theoretically, capital inflows will put pressure on the overvaluation of local currencies in countries, despite different exchange rate mechanisms. So, the problem facing the Vietnamese government is the need to examine the relationship between the exchange rate and FDI in order to develop effective policies. This study examined the relationship between the exchange rate and FDI in Vietnam in the period of 2005–2019 using the VAR (vector autoregression) model based on quarterly frequency data. The new points of this study are: (i) using the real effective exchange rate (REER) of the Vietnamese currency with 143 major trading partners of Vietnam; and (ii) adding two control variables into the VAR model to examine the relationship between the exchange rate and FDI in Vietnam – a case study for developing countries. The findings show that, firstly, there is a positive causal relationship between FDI and Vietnam’s real effective exchange rate. Secondly, trade openness has a positive impact on FDI and REER in Vietnam. Thirdly, economic growth has an impact on REER, but no statistically significant impact on FDI was found. The findings can provide useful information to help policymakers plan and make decisions on future policies and support further research studies.

Declining returns to investment in tertiary education in Vietnam

The human capital theory in economics argues that education is an investment in human capital and that the acquisition of knowledge and skills would enable individuals to increase their productivity and earnings, and thereby contributing to economic growth. As an investment, education incurs costs and benefits at various points in time. To measure economic benefits of education investment by individuals, economists use the rate of return to investment in education. This rate of return should be positive and higher than that of alternative options to ensure economic benefits of education investment and motivate education decisions. Given that tertiary education attainment is costly to individuals and the society at large, highly positive returns to tertiary education matter for individual and social human capital investments being economically justified. In the present age of mass access to tertiary education, the pattern of declining returns to investment in tertiary education was observed in a growing number of countries that include Vietnam. This trend may avert individual investment in human capital formation, and thereby negatively affecting national economic growth and development. To contribute to addressing this problem, the current paper aims to analyse the factors that drive the decay in returns to investment in tertiary education in Vietnam. Based on the descriptive research method using descriptive statistics, we summarize key trends in tertiary education in Vietnam. We identify that the abatement in returns to tertiary education investment in Vietnam may be attributed to three main factors: (i) the expansion of education supply, in particular tertiary education; (ii) the economic downturn after the global financial crisis; and (iii) the mismatched quality of tertiary education. These findings are foundations for our suggestions on possible solutions to inform the tertiary education development strategy.

Engendering Global Capital: How Homoerotic Triangles Facilitate Foreign Investments into Risky Markets

Engaging with the work of C. Wright Mills and Eve Sedgwick, in this article I theorize how homoerotic relations facilitate the flow of global capital into risky market economies. Drawing on interview data with more than 60 financial professionals managing foreign investments in Vietnam, I examine the co-constitution of gender and global capital by identifying three categories of deal brokers. System maintainers are men and women who accept that women’s bodies are necessary for male homosocial bonding between political and economic elites. System transformers are men and women who disrupt the status quo and develop alternative ways of deal brokering outside of erotic spaces. System defectors are those break the triangle altogether and work to create new markets.

DAAs for chronic hepatitis C: good public health investment in Vietnam

DAAs for chronic hepatitis C: good public health investment in Vietnam

The relationship between FDI inflows and private investment in Vietnam: Does institutional environment matter?

AbstractThe recent literature confirms that foreign direct investment (FDI) can crowd out/in private investment. However, questions concerning the FDI–private investment relationship under different kinds of institutional environment is of great interest. This study examines the role of institutional environment in the FDI–private investment relationship in Vietnam using the two‐step GMM Arellano–Bond estimators for a balanced panel data of 52 provinces during the period 2005–2014. More interestingly are the empirical findings. First, both FDI and institutional environment significantly boost private investment. Second, the FDI–private investment relationship completely varies based on the quality of institutional environment. Third, the positive effects of government revenue and government investment remain under different institutional environments. These findings suggest some important implications for governments in developing countries, especially the Vietnam government.

Sustainable Location Selection for Investing in Public–Private Partnership Infrastructure Projects: From a Developing Country’s Perspective

Location selection is one of the most important aspects of feasibility studies in all types of businesses and construction fields. However, poor project location selection is one of the leading causes of project failure, adversely affecting the cost, schedule, and other benefits of investors. This paper proposes an evaluation framework for selecting a sustainable location for investing in public–private partnership (PPP) infrastructure projects in Vietnam. Nine success criteria are identified via a literature review and expert judgments. Then, the fuzzy technique for order of preference by similarity to ideal solution (TOPSIS) method is applied to compute the success index and rank three alternatives: Southern (A1), Northern (A2), and Mekong Delta (A3) regions. Finally, a sensitivity analysis is conducted to examine the certainty and effectiveness of the model. The result indicates that alternative A1 is the best location for investing in the PPP form with a closeness coefficient (CCi) value of 0.555 and a sensitivity ratio of 11/13. This finding obtained using the proposed framework may be a helpful reference for practitioners and investors in selecting a sustainable location for PPP investment in Vietnam as well as other developing countries.

Cost-Utility Analysis of Direct-Acting Antivirals for Treatment of Chronic Hepatitis C Genotype 1 and 6 in Vietnam.

ObjectiveVery few cost-utility analyses have either evaluated direct-acting antivirals (DAAs) on hepatitis C virus (HCV) genotype 6 patients or undertaken societal perspective. Recently, DAAs have been introduced into the Vietnamese health insurance drug list for chronic hepatitis C (CHC) treatment without empirical cost-effectiveness evidence. This study was conducted to generate these data on DAAs among CHC patients with genotypes 1 and 6 in Vietnam.MethodsA hybrid decision-tree and Markov model was employed to compare costs and quality-adjusted life-years (QALYs) of available DAAs, including (1) sofosbuvir/ledipasvir, (2) sofosbuvir/velpatasvir, and (3) sofosbuvir plus daclatasvir, with pegylated-interferon plus ribavirin (PR). Primary data collection was conducted in Vietnam to identify costs and utility values. Incremental cost-effectiveness ratios were estimated from societal and payer perspectives. Uncertainty and scenario analyses and value of information analyses were performed.ResultsAll DAAs were cost-saving as compared with PR in CHC patients with genotypes 1 and 6 in Vietnam, and sofosbuvir/velpatasvir was the most cost-saving regimen, from both societal and payer perspectives. From the societal perspective, DAAs were associated with the increment of quality-adjusted life-years by 1.33 to 1.35 and decrement of costs by $6519 to $7246. Uncertainty and scenario analyses confirmed the robustness of base-case results, whereas the value of information analyses suggested the need for further research on relative treatment efficacies among DAA regimens.ConclusionsAllocating resources for DAA treatment for HCV genotype 1 and 6 is surely a rewarding public health investment in Vietnam. It is recommended that the government rapidly scale up treatment and enable financial accessibility for HCV patients.

Overview and Analysis of Industry in Vietnam under Taiwan’s Southbound Policy

Taiwan proposes southbound policy from 1993 until now. But this policy doesn’t tell which industries are suitable for entering into each country? Also, Taiwan was ranked number one to investment Vietnam from 2001 to 2006. Therefore, this research uses regression model to analyze which industries are currently suitable for investment in Vietnam. The research period is from January 05 2009 to October 01 2019, and the research results show that the appropriate industries are slightly from Ho Chi Minh and Hanoi markets.

State Ownership and Risk-Taking Behavior: An Empirical Approach to Get Better Profitability, Investment, and Trading Strategies for Listed Corporates in Vietnam

Corporate risk-taking behavior and investment is a crucial factor in order to seek higher profits and a better trading strategy. Competitive advantage and innovation, while maintaining profitability and state ownership, are considered as crucial resources. Furthermore, it is essential to connect the short-term and long-term business and investment objectives plus stakeholder’s expectations to corporate sustainability and development. This connection is especially important in the context of transforming economies and getting better trading strategies. This study estimates the relationship between state ownership, profitability, corporate risk-taking behavior, and investment in Vietnam by using Generalized Method of Moments (GMM) methods. Using the data of 501 listed non-financial corporates during the period 2007–2015 from Ho Chi Minh City and Hanoi Stock Exchanges, we find that profitability is determined as a factor to reduce corporate risk-taking acceptance caused by the chances of entrenchment. Meanwhile, the impact of state ownership on the risk appetite of corporate has a non-linear effect. In particular, state ownership reduces corporate risk-taking behavior and investment but yet increases the risk-taking behavior and investment when the state ownership rate exceeds a threshold. One the one hand, this implies that the low level of state ownership not only prevents risk-taking behavior and investment but also results in more severe agency problems, causing unsustainability due to the imbalance of interests among various stakeholders. On the other hand, a dominant role of state ownership concentration causes a boost in corporate risk-taking decision-making in investment and trading strategy, leveraging the connection of significant external resources to deal with uncertain problems. The study contributes to existing theories of corporate governance in the context of a socialist-oriented market.

Impact of Foreign Direct Investment on Economic Restructuring in Bac Ninh

In recent years, foreign direct investment (FDI) has played an important role in Bac Ninh’s economic restructuring. Of all provinces, Bac Ninh has always been leading the way for attracting foreign investment in Vietnam. The goal of this article is to study the relationship between FDI and the structure of economy of Bac Ninh. We use Ordinary Least Squares regression (OLS) to analyze the influence of the province’s FDI on its economic restructuring over the period from 2009 to 2019. The result partly shows that the FDI has had a strong impact on Bac Ninh’s economic restructuring in both speed and quality. Through these findings, we propose several recommendations for the local authorities to continue to attract the FDI and reinforce the positive impacts of the FDI on the province’s economic restructuring in the future. Keywords : Bac Ninh, foreign direct investment (FDI), economic restructuring, OLS DOI: 10.7176/EJBM/12-15-03 Publication date: May 31 st 2020

Impact of Economic Freedom and Corruption Perceptions Index on Foreign Direct Investment in Vietnam

Foreign direct investment is an important source of investment capital that is indispensable to contribute to each country's total investment capital. FDI attraction has always been of special interest to governments in both developed and developing countries. The empirical method was employed on a secondary time series data set during the period 1999-2018 to determine the impact of economic freedom index and corruption perceptions index on foreign direct investment in Vietnam by using the linear approach. The empirical results show that the relationship between corruption perceptions index and foreign direct investment is a positive sign at a 1% significant level. The effect of economic freedom index on foreign direct investment has a positive effect at a 5% significant level.

LAW ENFORCEMENT ON CORRUPTION CASES IN VIETNAM

This research examines corruption offences in public investment in Vietnam. An important part of the research is to examine and evaluate effectiveness and accountabilities of anti-corruption in public investment in Vietnam, including the Government Inspectorate of Vietnam, the People’s Procuracy of Vietnam and the People’s Public Security Forces of Vietnam based on their functions, powers and responsibilities. The aim of this research was to examine corruption and criminal behaviour in public investment in Vietnam, to identify practical policies, models and strategies for the purpose of improving the capacities and effectiveness of anti-corruption in public investment in Vietnam. The overall objective of this research was to research the corruption offences in public investment in Vietnam; to evaluate the effectiveness and accountabilities of anticorruption in public investment in Vietnam, including the Government Inspectorate of Vietnam, the People’s Procuracy of Vietnam and the People’s Public Security Forces of Vietnam based on their functions, powers and responsibilities; and to analyse corruption offences in public investment in terms of organisational structures and criminal behaviour to identify practical recommendations to enhance the success in combating corruption in public investment in Vietnam. A combination of qualitative and quantitative methods was employed in this study. The research has implications for anti-corruption commission policy makers and researchers in Vietnam.

The Effects of Economic Freedom on Firm Investment in Vietnam

The Effects of Economic Freedom on Firm Investment in Vietnam

The Impact of Corruption on MNE’s Sequential Investment

Purpose - The purpose of this study is to examines the effect of corruption pressure in host country on sequential investment. The study further investigates how the information acquisition capacity of MNEs and the political tie in the host country had a moderating effect on the relationship between corruption and sequential investment. Design/methodology/approach - Ordered logistic regression is hired to analyze 1,260 MNEs’ sequential investment in Vietnam. Findings - The empirical results of this study demonstrate the more MNEs perceive the strong level of pressure to be corrupt in the local market, the less they are likely to invest. The information acquisition capacity of MNEs has been shown to mitigate the negative effects of corruption pressures on sequential investments, while the moderating effect of political tie in host country is partially supported. Research implications or Originality - This study identified that the corruption pressures of host countries negatively affect not only MNEs that are entering, but also the ones that have already entered host countries; the corruption discourages any sequential investment for existing MNEs. By suggesting two moderating variables, this study will provide managerial implications for MNEs and managers who face corruption pressure in host countries.

Investigating the significance of risks in BOT transportation projects in Vietnam

PurposeThe Built Operate Transfer (BOT) model has been increasingly used in transportation investments in Vietnam. However, there is still an inadequacy of risk management applications in these projects and lack of research in this area. The study aims to improve the success of projects implemented through the BOT model in Vietnam.Design/methodology/approachThe study followed a sequential design including interviews and a questionnaire survey to investigate the perception of stakeholders from public and private sector regarding the probability of occurrence and the severity of impact of risks in BOT transportation projects in Vietnam. Quantitative data from the survey was subjected to descriptive and inferential statistics to explore the priority of risks as well as the differences in the perception between the public and private sectors.FindingsThe results showed that the top five most significant risks in BOT transportation projects in Vietnam are: (1) problems with land acquisition and compensation, (2) inappropriate location of toll booths, (3) public resistance to pay, (4) high toll rate and (5) lack of cash flow. With the exception of “lack of cash flow,” there were no statistically significant differences in the rankings of individual risks between the public and private sector. In addition, there is a significant positive correlation in the overall rankings of all risks for both sectors.Originality/valueThis study contributes to the body of knowledge by exploring the probability of occurrence and the severity of the impact of risks in BOT transportation projects in a developing country like Vietnam which has not been extensively explored yet. Second, it provides an insight into the perception of stakeholders from the public and private sector regarding the level of risks which is very useful for potential stakeholders in making decisions when they intend to participate in such partnerships. Third, it enables the Vietnamese government to establish suitable policies related to such projects. These contributions are very important in improving risk management in PPPs in developing countries.

Influence of Overconfidence and Cash Flow on Investment in Vietnam

CEOs Overconfidence can bring potentially risky early decisions to businesses, along with large enterprise free cash flow that can bring different investment decisions with CEOs Overconfidence. Especially in the context of Vietnamese enterprises, CEOs are often influenced by behavioral psychology about overconfidence in investment decisions (due to individual cultural characteristics as well as operating financial markets also depend on many factors outside the market). Therefore, the authors study the impact of overconfidence and cash flow on investment in Vietnamese to find the internal relationship between these three factors in the financial environment in Vietnam. With 480 companies listed on the Vietnam Stock Exchange from 2014 to 2018 (companies have continuous reports), the regression analysis results with panel data (FEM, GLS models, correction of robust and GMM dealing with endogenous problems) have shown Overconfidence has a positive impact on investment. At the same time, the results also indicated that enterprises with overconfident CEOs and large cash flows tend to invest less than enterprises with low cash flow. The results of this study have shown the behavioral behavior of CEOs in Vietnamese enterprises that exist under both prospect theory and effective market theory.

Comparative analysis of Japanese and Korean ODA investment in Vietnam

Comparative analysis of Japanese and Korean ODA investment in Vietnam

Trade Liberalization, Economic Reforms and Foreign Direct Investment – A Critical Analysis of the Political Transformation in Vietnam

The purpose of this study is to discuss the trends of integration into the global economy since political and economic reforms (so-called Doimoi) and its influence on every presence of foreign investment in Vietnam. Lasting 20-year-war period and ended in 1975, by the mid-1980s per capita income was stuck between $200 and $300, Vietnam’s government introduced Doimoi through a series of reforms, and steered the country to be a socialist-oriented market economy. Based on the analysis of reform process and integration, the results are concerned. Our results demonstrate that foreign direct investment performance has significantly embraced trade liberalization with gusto. Further, the open trade policy in relation to FTAs could significantly promote foreign investment and maximize its benefits on the economy.