Research objectives: Systematize some theoretical issues on FDI, the major economic areas in the North of Vietnam; assess the practical situation of FDI in the major economic areas in the North of Vietnam last time, show the problems that need to solve; clarify some theoretical issues, practices of the foreign direct investment of the major economic areas in the North of Vietnam; proposes main requirements and solutions to attract the foreign direct investment of the major economic areas in the North of Vietnam in the future.
Trang 1The theisis is based on abreast of the theoretical basis of Marxism - Leninism and Ho Chi Minh’s ideology, policies and guidelines of the Communist Party of Vietnam on international economic relations, foreign investment attraction, as well as is based on the FDI surveys results of the major economic areas in the North of Vietnam It has also consulted and inherited the results of several scientific researches on in the country and abroad which are involved.
The main contents of the thesis is presented in three chapters Chapter 1 presents the theory and experience of FDI In chapter 2 author generalize the process of formation, development and potential and difficulties and challenges of the major economic areas in the North of Vietnam for FDI; and survey the status of FDI in the major economic areas in the North of Vietnam period 2003 - 2013, show the emerging problems that are solved in the future
From the research results in chapter 1, chapter 2, the author has proposed some perspectives and primarily solutions to attract FDI in the major economic areas in the North
of Vietnam in the future (presented in chapter 3) The solution systems are awareness agreement, thinking innovation; building and improving the overall projects which have foreign investment; upgrading economic- social infrastructure, supporting industry development; human resource training; raising the effectiveness of state management of FDI
2 Reasons for choosing thesis topic
In the trend of international economic integration, and the impact of modern scientific and technological revolution, movement of resources through investment activities is unavoidable and play an important role in the development
of the nations, especially the developing countries The practice shows that countries, territories attract the more international capital and use it effectively, the more they
Trang 2have chances of economic growth, thereby overcoming faster the economic backwardness situation compared with the advanced countries.
In Vietnam, implementation of renovation policies by Communist Party of Vietnam (1986), especially since the Foreign Investment Law in effect (1988), foreign investment in general and FDI in particular is increasingly becoming popularity and actually become an important goal in the process of industrialization and modernization of the country
In the process of development, FDI has gradually affirmed its position and role in the socialist-oriented market economy which is reflected in the significant contribution of GDP growth, investment of the social development, increasing export turnover and total value of industrial production The position and role of this activity is also reflected in the spreading and development of FDI in most of the provinces, cities, industries and sectors, the major economic areas throughout the country, including the major economic areas in the North of Vietnam
The major economic areas in the North of Vietnam are included Hanoi (centre), Hai Phong, Quang Ninh, Hai Duong, Hung Yen, Bac Ninh, Vinh Phuc This years, FDI in this areas gained remarkable achievements in quantity, structure and quality of the project Thereby, it also adds a significant amount
of capital to invest in developing, exploiting and improving the efficiency of use of resources in the region, creating a new position and development force for the economy; promoting rapidly service activities development; accelerate the process of economic restructure towards modernization; make the major economic areas in the North of Vietnam are deeper integration into the economy of the region and the world
However, FDI in the major economic areas in the North of Vietnam in the years has some limitations and and are not corresponding with the position and potential of the region and the investment of the central Government The FDI inflows are instable, economic growth has been slow in recent years, small and medium scale mainly; capital structure was unreasonable; quality of FDI projects is not high because the technology of production in FDI firms is low compared with other countries in the region; especially there are the economic - social problems arise during the operation of the enterprise which formed from FDI
Trang 3These analysis shows that studying and assessing comprehensively both FDI theories and practice in the major economic areas in the North of Vietnam and proposing perspectives and primary solutions to attract FDI inflows in these region is urgent issues So the author choose the topic
"The foreign direct investment of the major economic areas in the North of Vietnam"
3 Research purpose and tasks
* Research purpose:
Clarify some theoretical issues, practices of the foreign direct investment of the major economic areas in the North of Vietnam; proposes main requirements and solutions to attract the foreign direct investment of the major economic areas in the North of Vietnam in the future
* The tasks of the thesis:
- Clarify some theoretical issues and make the experience surveys on FDI
- Assess the practical situation of the foreign direct investment of the major economic areas in the North of Vietnam period from 2003 to 2013
- Propose the opinions and basic solutions to attract the foreign direct investment of the major economic areas in the North of Vietnam in the future
4 Objects and scope of research
* Objects of research: The theisis studies on the foreign
direct investment of the major economic areas in the North of Vietnam
* Scope of research:
- The contents:
+ The thesis focuses on researching issues related to the attraction of the foreign direct investment of the major economic areas in the North of Vietnam
+ The thesis focuses on researching the joint-venture enterprises and foreign-invested enterprises in the major economic areas in the North of Vietnam
+ From the perspective of political economy, the thesis research, propose methodological and oriented solutions
- Scope of region: The thesis research on FDI in an economic space delimited by 7 provinces and cities directly under the Central Government as Bac Ninh, Ha Noi, Hai
Trang 4Duong, Hai Phong and Hung Yen, Quang Ninh and Vinh Phuc
in relations with Vietnam's economic space
- Scope of time:
+ The thesis focuses on the research, assessing the situation in FDI of the major economic areas in the North of Vietnam from 2003 to the end of 2013
+ The views, solutions to attract FDI is proposed in the thesis focuses primarily to 2020
5 Theoretical, practical basis and research methods:
* Theoretical basis of the thesis: is a viewpoint system
of Marxism - Leninism and Ho Chi Minh’s ideology; guidelines and policies of the Party, State, and army on foreign relations economy and other related theories to approach the object, comment the research tasks of the topic
* Practical Data source:
The authors used data from the report's agencies of the State and the Communist Party of Vietnam, such as the Central Executive Committee; Foreign Investment Department, Institute of Development Strategy - Ministry of Planning and Investment; Committee of coordinating the development of the major economic areas in the North of Vietnam; GSO, Statistical Office of the provinces and cities directly under the Central Government in the major economic areas in the North of Vietnam; the State management agencies in localities in the major economic areas in the North of Vietnam; Results were published in conferences, workshops, surveys, scientific research projects by organizations and individuals at home and abroad performing in recent times; the information and data collected through field surveys of local individuals in the major economic areas in the North of Vietnam
* Research Methodology: The thesis uses a system of
methodology of dialectical materialism and historical materialism, such as: approach to value, system - structure, analysis and synthesis, logical and historical, abstraction, and generalization methods Combine with the methods of sociological investigation and consultancy with experts, etc
6 New contributions of the thesis
- Systematize some theoretical issues on FDI, the major economic areas in the North of Vietnam
Trang 5- Assess the practical situation of FDI in the major economic areas in the North of Vietnam last time, show the problems that need to solve.
- Proposal perspectives and solutions to attract FDI in the major economic areas in the North of Vietnam in the future
7 Theoretical, practical significances of the thesis
* Theoretical significance: The thesis contributes to
clarify some basic theoretical issues on FDI and the major economic areas in the North of Vietnam
* Practical significance:
- Providing the scientific foundation and as the basis for managers and policy makers to make the right policy to attract FDI for economic- social development in the major economic areas in general, in the major economic areas in the North of Vietnam in particular
- The thesis can be used as references in political economy teaching in the academy, military school
8 Structure of the thesis
Include introduction, overview of research issues, three chapters (7 periods), conclusions, list of scientific works of the author related to the thesis, list of references and appendices
Trang 6OVERVIEW OF RESEARCH ISSUES
1.The overseas typical scientific works researching related the topic
The work of the Organisation for Economic Cooperation
and Development (OECD): Foreign direct investment in China, challenges and prospects for regional development [125], the World Investment Report United Nation 1996 [154] of the
Committee on Trade and Development of the United Nations;
Challenges and recommendations for Vietnam in attracting FDI
in the future [16, tr.174188] of the representative of the European Chamber of Commerce in Vietnam EuroCham; The report of the Australian Business Association in Vietnam (AusCham Vietnam) about jointly investigate and evaluate the direct investment from overseas in Vietnam for 25 years [16, tr.189191]; the Japan External Trade Organization JETRO with the work: The investment environment in Vietnam [16, tr.192197],; The investment environment in Vietnam [16, tr.198204], by Mark
GillinVice President of American Chamber of Commerce in
Vietnam (AmCham), "The Relationship Between Foreign Direct Investment and China's Provincial Export Trade" [156] of Zhang and Felmingham; “Foreign Direct Investment and Relative Wages: The Case of China” [157] c a Zhao.ủ
2.The typical scientific works in Vietnam researching related the topic
2.1 The reference books and monographs researching
related the topic
A group of authors (Nguyen Bich Dat editor) with the work:
Economic area of foreign investment in the socialistoriented market economy in Vietnam [45]; Foreign direct investment and economic development in Vietnam [136] by Nguyen Van Tuan; The form of foreign direct investment in Vietnam Policies and practices [87]
that science works by authors Phung Xuan Nha edited, compiled on
Trang 7the basis of findings of special topics Range Vietnam National
University forms of foreign direct investment in Vietnam; Foreign direct investment in Vietnam, the situation and the solution [138] by Tran Xuan Tung; Policies to encourage investment in Vietnam [17] is a book by Tran Thi Minh Chau authoreditor; Economy of foreign investment in Vietnam today [70] that the book was compiled by the
group of scientists from the Institute of Political Economy, Public Administration Institute in Ho Chi Minh City National (now the national Political Institute in Ho Chi Minh City), by Tran Quang Lam and An
Nhu Hai as coeditor; Foreign direct investment by the United States transnational companies in Vietnam [85] is a monographic book of the author Dang Hoang Thanh Nga; The book “Policy of sustainable development of the major economic areas in Vietnam” [83], by Nguyen
economic issues arise in foreign direct investment of some Asian countries and solutions for Vietnam” [110]; Economic doctoral theisis of Tran Thi Tuyet Lan, published in early 2014 “Foreign direct investments towards sustainable development in the major economic region of the North of Vietnam” [68].
2.2.2. The thesis of the major economy areas in the North of Vietnam
Trang 8Economic doctoral dissertation of Ta Dinh Thi “The economic restructuring in view of sustainable development in the major economy areas in the North of Vietnam” [111], the authors
Bach Thi Lan Anh with her doctoral thesis of political economy
“Sustainable Development of traditional village in the major economy areas in the North of Vietnam” [1]; Economic doctoral thesis of Vu Thanh Huong “Sustainable development of Industrial zone in the major economy areas in the North of Vietnam” [64], the author; Economic doctoral Thesis of To Hien Tha “The development
2.3.1. The articles, scientific presentations, researches related foreign direct investment, foreign investment economy
The summary record of the Conference of 25 years foreign direct investment in Vietnam [16] is a set of 26 scientific presentations by scholars, politicians, scientists, managers of the ministries, branches, localities and some representatives of international organizations such as: EUROCHAM, AUSCHAM,
JETRO, AMCHAM "Foreign Investment Policy in the process of international economic integration" [13] is a scientific paper of the
Ministry of Planning and Investment which was presented at the International Conference of Vietnam is ready to join the WTO which was organized in Hanoi from May 3 to June 4, 2003 by The national center of Sciences and Humanities and the World Bank in Vietnam; the
author Phan Huu Thang with the article "Summarizing 20 years of the
Trang 9Journal of Economics and forecasting, No. 1/2008 Tran Van Loi with
his article " Development of foreign invested economy The issues and some solutions" [77] Scientific paper "Improving the investment environment in Vietnam in international economic integration" [51] by Nguyen Van Hao; The article "Some basic solutions for developing and using foreign investment sector" [93] by Dr. Dinh Van Phuong and Dr.
Hoang Thi Bich Loan; the article of Mai Van Bao " The contribution of foreign investment Economy for promoting economicalsocial
development of Vietnam "[7]; The article of Ho Thanh Thuy "Practical situation and prospects for economic development of foreign investment
in Vietnam" [122] and "Investing abroad with the development and exploitation of human resources Vietnam today "[47] by Nguyen Thi Nhu Ha; the scientific work of Pham Ngoc Anh "Attracting foreign investment From HCM ideas to reality of development "[3] was published in the book of Vietnam on major road (1945 2005) for the target of rich people, strong country, social justice, democracy and civilization; “The basic investigation of elements of sustainable development in the major economical zone” [101] is scientific reseacher
by Nguyen Danh Son as chairman; “Synthesis Report of overall socio economic in the major northern areas Planning to 2020 and orientations
to 2030” [14] is a serious and careful work by the Ministry of planning
and Investment to implement
Besides, we also find a lot of articles which talked about ideas the data, practices, policies, decisions on FDI activities, attracting FDI in economic regions development, major economic regions, socio economic development of localities which were published in magazines: Communism, Economics and Forecasting, Economy and Development, Economic Development, Economic Research, Economic Management, Social Labor, Education and reasoning, Asia Pacific, Finance, Banking or the website of the Ministry of Planning and Investment,
Trang 10the Government web portal Minister, the website of the Department of Planning and Investment and localities with the title abundant and diverse. This is the key document in the course of study by a large amount of information, timeliness, many new ideas.
3 General evaluation of the result of published scientific works and the research issues of the thesis
3.1 General evaluation of the result of published scientific works
The project has clarified many theoretical and practical issues
on FDI and generalized on some contents as follows:
First, these works have achieved many important results in
building concepts, analyzng the characteristics and generalizing forms, and other several theoretical issues on FDI
Second, many scientific projects typically has appeared in the
review which have analysised, argued quite profound on the status of FDI in Vietnam
Second, basing on the theoretical framework and surveys of
FDI attraction situation in some countries of the world in order to draw the experiences of the field for the major economical areas in the north of Vietnam
Third, basing on the determined theoretical framework,
especially the criteria for evaluating the results of FDI, the thesis conducted a survey to assess the status of FDI in the major economical areas in the north of Vietnam period 20042013
Trang 11Fourth, the theories and practice have shown in Chapters 1
and Chapter 2, the thesis suggests some basic and key measures to attract FDI inflows in the major economical areas in the north of Vietnam in the next period
Trang 12Chapter 1 THE THEORY AND EXPERIENCES OF THE FOREIN
DIRECT INVESTMENT
1.1 The theory of forein direct investment
1.1.1. The process of formation and development; concept, characteristics and forms of foreign direct investment
1.1.1.1. The process of formation and development of foreign direct investment
The bourgeois economists as A.Smith (1776), Thomas Malthus (1798), D.Ricardo (1817), and later as Vernon (1966), Kojima (1973), Hymer (1976), Dunning (1988 ) said the formation and development of international investment which had theoretical basis was the division of labor based on comparative advantage and international trade
Foreign direct investment is the movement of capital, technology or legal asset classes move from investment countries to investmentreceiving countries to establish new businesses or control the enterprise is operating on basis of international rules and laws of the host country, to business and profit.
1.1.1.3. The characteristics of foreign direct investment .
FDI is not simply a transfer of capital resources but also to embrace the technology transfer process, aiming to help the major economical areas in the north of Vietnam become a bright spot, a the most developed centre of economic growth of the northern region
Trang 13and in the whole country and the major economical areas in the north of Vietnam itself integrate with many favorable factors for realizing the goal of FDI.
To implement this, we should base on the practical situation of the country, local authorities in the region; Researching and selectively acquiring international experience to apply a creative way on the specific circumstances. In this chapter, the fellows were selected studies, surveys
on operational experience of several countries of FDI which has similarities, from which to draw useful lessons for the major economical areas in the north of Vietnam That is the lesson of orientation towards FDI for each stages; lessons on mechanisms and policies for FDI by economic sector, economic regions to implement macro objectives; lessons on creation of investment climate and favorable business, competitive
The next problem, the thesis must focus on the research, reviews the true state of FDI in the major economical areas in the north of Vietnam now, clearly identify the issues to be addressed from that perspective proposals, solutions legal process and use FDI attraction next time in this economic area more effectively
Trang 14Chapter 2 ACTUAL SITUATION OF FOREIGN DIRECT INVESTMENT IN THE MAJOR ECONOMICAL AREAS IN THE NORTH
OF VIETNAM PERIOD 200320132.1 Outline the process of formation and development; potential, strengths and difficulties and challenges for foreign direct investment of the major economical areas in the north of Vietnam
2.1.1. Outline the process of formation and development of the major economical areas in the north of Vietnam
The major economical areas in the north of Vietnam was historically formed and developed from the early years of 90s of the twentieth century and is known as the major economical areas included 7 provinces are: Ha Noi; Hai Phong; Quang Ninh, Hai Duong, Huong Yen, Bac Ninh, Vinh Phuc that is associated with the issuance of Resolution No. 15/2008 / NQQH12 on the adjustment of the administrative boundaries of Hanoi and related provinces adopted
2.1.2 The difficulties and challenges for foreign direct investment of the major economical areas in the north of Vietnam