Locational Determinants of Foreign Direct Investments in the Vietnamese Economy

Ngoc Le, Xiaoqing Li, Andrey Yukhanaev

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

3 Citations (Scopus)


This chapter investigates the determinants of inward Foreign Direct Investment (FDI) in the Vietnamese economy and their connection to the rapid economic growth the country has experienced. Using the concepts drawn from the extant Ownership-Location-Internalization (OLI) paradigm and Institutional-Based View (IBV) literature, and adopting a quantitative research with the application of secondary data analysis, the study found seven significant locational factors determining FDI inflows into the Vietnamese economy, such as business freedom, market size, labor cost, trade freedom level, inflation rate, human capital, and the effectiveness of property rights. Political risk, monetary freedom, corruption, the country's WTO accession, and the global financial crisis are found to be irrelevant to the inbound investments in the modern economy. A macro-level account and the policy implications are suggested for the promotion of FDI inflows into Vietnam to ensure the country's continuous and sustainable economic development.
Original languageEnglish
Title of host publicationHandbook of Research on Global Business Opportunities
EditorsBryan Christiansen
Place of PublicationHershey, PA
PublisherIGI Global
ISBN (Print)9781466665514
Publication statusPublished - Oct 2014


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