Tóm tắt luận án: Đầu tư trực tiếp nước ngoài (FDI) tại tỉnh kiên giang trong bối cảnh mới

Đầu tư trực tiếp nước ngoài (FDI) tại tỉnh kiên giang trong bối cảnh mớiĐầu tư trực tiếp nước ngoài (FDI) tại tỉnh kiên giang trong bối cảnh mớiĐầu tư trực tiếp nước ngoài (FDI) tại tỉnh kiên giang trong bối cảnh mớiĐầu tư trực tiếp nước ngoài (FDI) tại tỉnh kiên giang trong bối cảnh mớiĐầu tư trực tiếp nước ngoài (FDI) tại tỉnh kiên giang trong bối cảnh mớiĐầu tư trực tiếp nước ngoài (FDI) tại tỉnh kiên giang trong bối cảnh mớiĐầu tư trực tiếp nước ngoài (FDI) tại tỉnh kiên giang trong bối cảnh mớiĐầu tư trực tiếp nước ngoài (FDI) tại tỉnh kiên giang trong bối cảnh mớiĐầu tư trực tiếp nước ngoài (FDI) tại tỉnh kiên giang trong bối cảnh mớiĐầu tư trực tiếp nước ngoài (FDI) tại tỉnh kiên giang trong bối cảnh mớiĐầu tư trực tiếp nước ngoài (FDI) tại tỉnh kiên giang trong bối cảnh mớiĐầu tư trực tiếp nước ngoài (FDI) tại tỉnh kiên giang trong bối cảnh mớiĐầu tư trực tiếp nước ngoài (FDI) tại tỉnh kiên giang trong bối cảnh mới

VIETNAM ACADEMY OF SOCIAL SCIENCES

GRADUATE ACADEMY OF SOCIAL SCIENCES

NGUYEN DUY LINH THAO

FOREIGN DIRECT INVESTMENT (FDI) IN KIEN GIANG

PROVINCE IN THE NEW CONTEXT

Major: International Economics

Code: 9 31 01 06

SUMMARY OF ECONOMIC DOCTORAL THESIS

HA NOI – 2022

The work was completed at :

VIETNAM ACADEMY OF SOCIAL SCIENCES

GRADUATE ACADEMY OF SOCIAL SCIENCES

Scientific Supervisors:

1 Assoc Prof, Dr Bui Quang Tuan

2 Assoc Prof, Dr Do Phu Tran Tinh

Review 1: Assoc Prof, Dr Ha Van Hoi

Review 2: Assoc Prof, Dr Phan Tran Trung Dung

Review 3: Assoc Prof, Dr Lưu Ngoc Trinh

The thesis will be defended at the Academy-level Thesis Judging Council, Graduate Academy of Social Sciences, 477 Nguyen Trai St, Thanh Xuan Dist,

INTRODUCTION

1 Necessity of the project

In the early years of the twenty-first century, although the trend of liberalization and globalization continued, there were many obstacles Protectionism emerged in some areas In addition, there are a number of important events in the world that can change the world economic order that has existed in the past few decades The US-China trade war is not over yet; The European Union (EU) is divided after the Brexit process; The conflict between Russia and Ukraine changed the situation in Europe… The global economic center is tending to shift to the Asia-Pacific region Such situations affect the investment environment significantly Therefore, foreign direct investment (FDI) economic groups are making necessary adjustments on a global scale This is an opportunity for emerging countries when investment flows are being restructured

Since Doi Moi, Vietnam has actively integrated into the world economy and integration has become an important factor for its relatively high growth results over a long period of time Vietnam has signed many bilateral and multilateral trade agreements, especially the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the Vietnam-EU Free Trade Agreement (EVFTA), the UK-Vietnam Free Trade Agreement (UKVTFA), which are new generation FTAs that are bringing new opportunities for more FDI inflows In addition to policies and programs to facilitate the investment environment, Vietnam has ensured a stable macroeconomic and political environment, creating confidence for foreign investors In particular, Vietnam has adapted well in controlling the Covid-19 epidemic, creating a significant advantage in the competition for FDI inflows in the region In 2021, registered FDI capital reached 31.15 billion USD, up 9.2% whilst realized capital reached 19.74 billion USD Vietnam is the third largest recipient of FDI in the region and one of the ASEAN countries that has maintained stable FDI inflow growth over the years The FDI sector until 2021 has accounted for about 25% of total social investment capital, 55% of total industrial production value FDI enterprises account for more than 70% of export turnover, contributing to the transformation of export structure from raw materials and minerals to processing and manufacturing industries with high added value

However, many localities with many available extremely favorable conditions are very attractive to FDI inflows for local socio-economic development, but they have not yet promoted their full potential and have not taken advantage of FDI capital flows Therefore, FDI in some localities

is still very limited, mainly concentrated in a few localities such as the Southeast region, the Red River Delta, the central region, notably Da Nang city In the Mekong Delta, only Long An province is significant - ranking 12/63 in the country in terms of FDI inflows

FDI inflows into Kien Giang province are facing many limitations The situation of FDI inflows shows that, if calculated cumulatively, the projects valid until December 20, 2020 of Kien Giang are 62 projects with a total registered capital of over $4.8 billion, ranking 20th in Vietnam and 2nd in the Mekong Delta in terms of FDI Regarding investment partners, there are 19 countries and territories present in Kien Giang, investing in fields such as tourism, agriculture, processing industry, manufacturing, trade and service Meanwhilst, Kien Giang has many outstanding advantages in terms of natural conditions, great potential for economic development, especially in tourism economy such as Phu Quoc island; islands, archipelagos and many coastal areas can develop green cities, smart cities, model cities, processing industries, agriculture, fisheries Besides the modest FDI inflows, the trend of FDI inflows into Kien Giang has shown signs of slowing down recently Thus, there must be many reasons affecting FDI inflows into the province These causes have not yet been thoroughly evaluated In addition, there have not been many in-depth studies and evaluations of FDI inflows into Kien Giang as well as limitations and inadequacies in FDI inflows into the locality, especially from the perspective of policy institutions This is a big gap in research so that there can be proposed policy solutions to promote FDI inflows into Kien Giang, taking advantage of Kien Giang's coastal and islands Therefore, studying FDI in Kien Giang is a very urgent issue to help detect factors that are barriers, restraints or potential to create motivation for foreign direct investment inflows into Kien Giang province With that in

mind, the PhD student chooses the topic "Foreign Direct Investment (FDI)

in Kien Giang Province in the New Context" for doctoral thesis

2 Research objectives and tasks of the thesis

2.1 Research objectives

On the basis of analyzing the current situation of foreign direct investment in Kien Giang province, the thesis proposes solutions to promote FDI inflows in Kien Giang province in the new context

2.2 Tasks of research

(i) Synthesize and systematize theoretical issues and lessons learned

on attracting FDI into a locality

(ii) Analyze and evaluate the current situation of FDI in Kien Giang

province, pointing out the limitations and causes of the limitations

(iii) Research on factors affecting FDI in Kien Giang province (iv) Proposing solutions to promote FDI inflows in Kien Giang

province in the new context

3 Research objects and scope of the thesis

Due to limited data, the thesis has not looked deeply into the issues of technology transfer and spillover of FDI in terms of technology and management, but only considered from the perspective of measuring the level of capital flow and the contribution of FDI to the local

3.2.2 Scope of space

The thesis examines the situation of FDI inflows in Kien Giang province in comparison with the key economic region of the Mekong Delta and the whole country

3.2.3 Scope of time

The thesis considers data in the period 2010 - 2020

4 Approaches and research methodology of the thesis

4.1 Approaches

System approach: The thesis uses a systematic approach, linking the

theory about the movement of FDI flows and the practice of FDI inflows in the locality, considering a locality like Kien Giang province associated with

an area called the River Delta Cuu Long has local characteristics of this region, and places FDI inflows as an important contributor to the province's economic development Besides, the thesis also considers international experience so that there can be lessons learned for a locality like Kien Giang province

Institutional approach: Institution is always one of the most

important issues when it comes to FDI because it is related to the facilitation of the investment and business environment Therefore, the thesis will focus on analyzing the institutional situation at all levels, assessing the impact of institutions on FDI inflows and finding out the bottlenecks and institutional limitations in creating a favorable environment FDI inflows into Kien Giang province

Qualitative and quantitative approaches: The thesis combines both

qualitative research approach with quantitative research (through expert interviews and focus group discussions with survey subjects) to measure research concepts and research their effects The impact of variables on the research object by quantitative model The econometric models have been tested to serve to estimate the effects of factors on FDI inflows which is the main research question of the thesis

4.2 Research methodology

4.2.1 Analytical and synthetic methods

The thesis uses analytical methods, looks deeply into the contents of the big issue, explores the influencing factors and causes of the current situation of limitations and weaknesses in FDI inflows into the province From the actual analysis results, the thesis proceeds to synthesize and generalize into theoretical problems and general statements The thesis also synthesizes good international and domestic experiences in FDI inflows to draw lessons learned This method is used in the chapters of the thesis

4.2.2 Descriptive and comparative statistics

Descriptive statistical analysis method is a method of using statistics from primary and secondary sources to analyze the movement trends of the

variables of interest Statistical data are also used to analyze and compare the reality and situation of the years over time and by province, region or country These methods are used in chapter 3 to describe the situation and compare FDI in Kien Giang province with the whole country and in the Mekong Delta region

4.2.3 SWOT

The thesis also uses the analysis method of strengths, weaknesses, opportunities and threats (SWOT) when studying the reality in chapter 3 to combine the analysis results of chapter 4 to forecast and propose solutions

4.2.4 Secondary data collection method

Secondary information for the period 2010 - 2020, documents, reports, studies, statistical data of state agencies, published studies, domestic and foreign, etc

4.2.5 Primary data collection method

There are many theories of sampling and how to choose a sampling method, of which sample size estimation is a very important step in research design Small sample size will not help to detect the difference, conversely large sample size will waste money and time Many people find

it confusing to calculate the sample size for a study because the calculation

of the sample size is not simply a number of numbers into a predetermined formula but depends on the experience and knowledge of the researcher However, because the number of FDI enterprises in Kien Giang is

62, the thesis will take this sample size as the total of the research data To increase the reliability, the author will increase the sample size by surveying from 1, 2 or 3 votes for each enterprise

The steps are as follows:

Collect 2 subjects: Managers (central and local) related to FDI activities and FDI enterprises operating in Kien Giang province

Step 1: Experimental survey by interviewing managers (central and

local), domestic and foreign experts, who are respondents to redefine the factors and adjust the observed variables used to measuring scale structure Ask them if the interview question is clear and easy to understand or if there are any suggestions for additions or corrections In addition, when analyzing the results, we will continue to consult the management staff to get more analytical information and have a more multi-dimensional perspective, effectively supporting the results of quantitative analysis

Step 2: Conduct a formal survey to collect opinions at FDI

enterprises operating in Kien Giang province and possibly expand some potential investors who have a relationship with the author

4.3 Analysis tools

The author uses the reliability analysis tool (Reliability Analysis) through Cronbach's Alpha coefficient, analyzing the exploratory factor analysis (EFA); Linear regression (OLS - Ordinary least squares) is used to determine the factors affecting FDI inflows

4.4 Research process

The thesis will collect theories including: (i) researching the theoretical basis of foreign direct investment capital (ii) conducting an overview of relevant empirical studies to design the outline Expert interviews and group discussions with survey subjects to adjust the model and adjust the observed variables used to measure the research concepts Next, perform a formal quantitative study on the sample size that is theoretically calculated The respondents are the survey subjects according

to the convenient sampling method through the survey table

The author will analyze the reliability of the data through the Cronbach'Alpha coefficient Then analyze the exploratory factors by exploratory factor analysis (EFA) method to screen the scale and determine the scale structure for formal research

Next, the author uses multiple linear regression (OLS - Ordinary least squares) to test the research model and hypothesis The steps in the research process follow the diagram below:

Theory  Building models and scales (preliminary)  Expert discussion  Model and scale are adjusted  Formal survey (n = calculation)  Data entry  Data is encrypted and cleaned  Run Cronbach'Alpha  EFA analysis  Correlation analysis  OLS  Conclusion and suggestions

Note: In the process of performing analytical procedures using SPSS

in each stage including: Cronbach’Alpha  EFA  Correlation analysis

 OLS may have to run loops until it meets the requirements for tests, appropriateness, statistical significance, along with other validation procedures…of statistical theory

5 New scientific contributions of the thesis

The thesis has new practical contributions as follows:

(i) Modeling to identify groups of factors affecting FDI inflows in Kien Giang province, and quantitative analysis to quantify that impact (ii) Clarifying the current status of FDI inflows in Kien Giang province - Vietnam, pointing out limitations, bottlenecks and causes (iii) On the basis of SWOT analysis, the thesis clarifies strengths, weaknesses, opportunities and threats of FDI inflows in the new context in Kien Giang

(iv) The thesis proposes groups of solutions to promote the new generation of FDI inflows in Kien Giang province in the coming time

6 The structure of the thesis

The structure of the thesis consists of 4 chapters:

Chapter 1: Literature review

Chapter 2: Theoretical basis and experience in attracting foreign direct investment (FDI) to a locality

Chapter 3: Situation and factors affecting the flow of foreign direct investment in Kien Giang province in the period 2010 - 2020

Chapter 4: Prospects and solutions to attract FDI inflows into Kien Giang province in the coming years

CHAPTER 1: LITERATURE REVIEW

1.1 Research related to the thesis topic

1.1.1 The group of research explaining the motivation for foreign direct investment

As for investors, they will take advantage of their strong resources to search for investment markets in countries with favorable investment environments to achieve maximum profits In addition, it also sets the goal

of enhancing its position and prestige in the international arena or creating a bond to dominate the host country's economy More specifically, the purposes of international investors are pointed out by economists, which are motives that want to maximize all resources of the host country, combining their advantages and others like commercial factors, non-commercial factors to achieve the highest benefits

The factors that promote the intention of foreign direct investment (FDI) of investors have had many economic studies providing explanations based on the general theoretical foundation of FDI Currently, there are many scholars based on such views as the difference in the marginal

productivity of capital between countries; Product cycle; Special advantages of multinational companies; Market access and reducing trade conflicts; Exploiting expertise and technology; Access to natural resources…to conduct empirical research and obtain reliable results in a locality of a country that has had large-scale FDI inflows and is growing quite steadily

First, when discussing the school of research based on the theory of Differences in Marginal Productivity of Capital between countries

With a theoretical background in the product cycle,

For the approach, the explanation of FDI flows is that investors want

to find (natural) resources

Next, with the orientation to use the theory of special advantages of multinational companies related to FDI,

In addition, there are works approaching from the point of view of avoiding bilateral trade conflicts and accessing markets which are also factors that promote countries to make foreign direct investment

1.1.2 The group of research on factors affecting foreign direct

investment (FDI)

Asiedu (2002)

China, Liu K., Kevin D., Maria E V (2012)

Abdul Ghafoor Awan (2014)

Fagan Rzabeili & ctg (2016)

In order to explain investor behavior, Nguyen Dinh Tho et al (2009),

in the book "Scientific Research in Business Administration",

Quite similar to Tho's research (2009), there is an empirical evidence

of Dinh Phi Ho (2011) in the work "Factors affecting investment capital flows in industrial zones"

“Investment decision” is a dependent variable, published by Nguyen Ngoc Anh (2015), when publishing the thesis “Research on factors affecting foreign direct investment flows into the central key economic region”

Report of the Asian Development Bank (ADB) (2006)

In studying foreign direct investment capital flows in Dong Nai province, Tran Dinh Thanh (2009)

Particularly in Vietnam, through the evaluation results of 20 years of implementation of the Law on Foreign Investment 1987, in the study of Phan Ngoc Trung (2010)

Nguyen Trong Minh (2012)

A research of Nguyen Thi Tue Anh et al (2014)

1.1.4 The group of research on solution of FDI flows

Regarding FDI inflows under new conditions, Anh, N.N., and Thang,

N (2007), “Foreign direct investment in Vietnam: review and analysis of the determinants of spatial distribution between provinces"

When studying FDI in Binh Dinh province, Ha Thanh Viet (2011) introduced the concept of local marketing

Regarding FDI of Nghe An province, Ho Thi Hien (2018)

………

1.1.5 Theories on factors affecting foreign direct investment (FDI) flows into a locality

1.1.5.1 Generall theory of FDI inflows

The thesis continues to inherit domestic and foreign documents referring to the theory of foreign direct investment, which has been studied

by economists since the early decades of the twentieth century Prominent are MacDougall's theory of marginal productivity (1960), theory of ownership advantage (Hymer, 1960), product cycle theory (Vernon, 1966), internalization theory (Coase, 1937) and eclectic theory (Dunning, 1977) They are considered the most important fundamental theories and are of the greatest interest to researchers

…………

1.1.5.2 Theoretical schools related to the factors affecting the flow of foreign direct investment (FDI) into a locality/a country

Besides the theoretical studies on investment decisions of FDI enterprises in terms of location selection, investment forms of FDI as analyzed above, there are other research works related to the theory combining experimental research Regarding FDI, Imad A Moosa (2002) analyzed FDI theories and examined factors affecting FDI

………

1.2 The gaps and problems of research

An overview of relevant domestic and foreign studies may reveal some of the following results:

Firstly, there are many schools of interpretation of the causes of FDI

in the world, which are popular studies in the late 20th and early 21st centuries These studies have explained why there are FDI, why is there an incentive to move FDI inflows in the world?

Secondly, depending on the objective and level, each study selects

different influencing factors to test the impact of these factors on FDI flows

in practice The experimental research results show that the factors affecting FDI are very diverse in each locality or each country However, studies on the factors affecting FDI inflows in Kien Giang are almost nonexistent and the influencing factors are unclear

Thirdly, Third, so far, there has been no research on FDI at the local

level in new contexts such as climate change, epidemics, cooperation through new-generation agreements, trade wars, etc in order to propose solutions to promote FDI inflows

There are many research gaps mentioned above, but in this thesis the author focuses on solving specific issues including:

Firstly, hệ thống hóa và làm rõ khung phân tích các yếu tố tác động

đến dòng vốn FDI vào địa phương của một quốc gia

Secondly, building an econometric model with variables quantified

by a scale system to evaluate the correlation between factors affecting FDI inflows into Kien Giang province, especially taking into account new factors affecting FDI inflows into Kien Giang province

Thirdly, clarifying the current status of foreign direct investment

capital flows into Kien Giang province in the period 2010 - 2020 The thesis will evaluate and point out issues such as limitations, bottlenecks, opportunities and threats to the flow of foreign direct investment capital in Kien Giang province

Finally, propose solutions to promote positive factors affecting FDI

inflows and overcome limitations and bottlenecks in FDI inflows into Kien Giang province

CHAPTER 2: THEORETICAL BASIS AND EXPERIENCE IN ATTRACTING FOREIGN DIRECT INVESTMENT (FDI) TO A

tư toàn bộ hoặc một phần vốn thành lập trên lãnh thổ của một quốc gia khác

để tiến hành hoạt động kinh doanh thu lợi nhuận Nhiều nước trên thế giới không phân biệt vốn đầu tư trong nước với vốn đầu tư nước ngoài và bởi vậy, không có khái niệm doanh nghiệp có vốn đầu tư nước ngoài, họ gọi các doanh nghiệp được thành lập trên cơ sở góp vốn của các nhà đầu tư nước ngoài theo hình thức tổ chức pháp lý của chúng, đơn cử như Công ty trách nhiệm hữu hạn, Công ty cổ phần

2.1.2 Foreign direct investment

There are many different approaches to foreign direct investment (Foreign Direct Investmen – FDI, as defined by the International Monetary Fund (IMF) (1997) “FDI is an investment activity undertaken to achieve long-term interest in an enterprise operating in the territory of an economy other than that of the host country, the purpose of the investor is to gain the right to actual management of the enterprise”…

To summarize from the above points of view, it can be said that foreign direct investment is the movement of capital, assets, technology, and management experience from the investor's country to the host country

to establish or control an enterprise for the purpose of making a profit from such investment activities Thus, it can be seen that FDI is an economic relationship with foreign factors, the essence of FDI is: There is the establishment of capital ownership of a company in another country for the purpose of seeking long-term profits; FDI activities are related to the combination of ownership with the right to manage the invested capital,