Viet Nam Study Attracting Foreign Direct Investment

As the world economy’s growing, many countries are integrated into the world economy for the development of their economy, especially in the recent years, Asia Pacific region has the most dynamic economy in the world. Vietnam is the country located in the region, it is necessary for Vietnam to develop itself regularly. Capital matters a lot for each country’s economy development, because it promotes the development for the country’s economy. In developed countries, there are a large number of capital and the possible direct and indirect investment, including Vietnam, the developing countries, the main purpose is to attract capital. Capital is a very important power for countries’ economic and social development, especially the foreign direct investment.The Vietnamese party and the government has understood the importance of this trend, the foreign investment law promulgated in 1987, and revised three times respectively in 1990, 1992 and 1999. In order to stable social and economic development, increase country’s GDP, increase employment opportunities, as well as many other goals, the domestic capital of Vietnam can only meet half demand for it, it is very necessary for Vietnam to attract foreign capital, foreign direct investment is the main demand.Since Vietnam went through reforming and opening up, its foreign investment and attracting foreign investment both have achieved great performance, this progress not only makes Vietnam get higher international status, but also improve his economic level rapidly over a long time. Besides the progress Vietnam makes, there are still some problems Vietnam faced, in general, Vietnam’s investment scale is not big enough, there is a large room for Vietnam to improve its foreign investment; Vietnam’s the proportion of foreign investment and attracting foreign investment not only lower than the world average, but also lower than the general level of developing countries; Meanwhile, the overall scale of foreign investment is not suit for its domestic economic level.Since 1992, China kept on the top in the world on attracting foreign direct investment among developing countries. The main reason is that the Chinese government encourage strategic investors to invest and also provide very preferential investment policy. In December 2001, China joined the world trade organization(WTO), continued carrying out more complete relevant policies, created more favorable conditions for investors, gained more investment amount in quantity and quality high efficiently. The capital, engineering, technology and modern management skills spread to China from the foreign direct investment became the main driving force for China to attract foreign direct investment to promote national economic development.This paper first is to study the status of the current Vietnam attracting foreign capital and the related policy making, summarize some successful experiences, and sums up the deficiencies in the development process; At the same time, the author also studied China’s some experience and the insufficiency on attracting foreign investment policy, absorb China’s experience better and to avoid shortage at the same time, so provide some useful reference for Vietnam to make attracting foreign investment policies.