A Research On The Impact Of FDI On Hochiminh's Economy

Foreign direct investment,as a part of the total investment in society,which impact economic growth in Vietnam,has been a hot topic in academic research.Domestic and foreign scholars are based on different perspectives and mechanism of action to analyze the relationship between foreign direct investment and regional economic growth,and put forward a large number of theoretical and policy recommendations.As a developing country,foreign direct investment in Vietnam occupies an important position,the study of foreign direct investment on regional economic growth and industrial technology innovation,plays a key role.Ho Chi Minh City with location advantages is the economic center of Vietnam's development,has been the focus of foreign investment in Vietnam.Therefore,this paper analyzes whether there is a causal relationship between foreign direct investment and economic growth in Ho Chi Minh City,analyzes the effect of FDI on the economic growth of Ho Chi Minh City,and analyzes the impact of the inflow of FDI on the economic growth of Ho Chi Minh City.It has a good theoretical support for the development of reasonable foreign investment policy in Ho Chi Minh City.This paper analyzes the specific relationship between Ho Chi Minh City's absorption profile and the co-integration test and error correction model and the economic growth of Ho Chi Minh City.First of all,this paper uses the relevant data as total amount of FDI,investment structure,investment,industrial distribution.It is found that Ho Chi Minh city has attracted FDI in the early 1990s and this amount has increased significantly,becomes an important part of the total absorption of Ho Chi Minh City.Most of the absorption of FDI in Ho Chi Minh city is from Asia,mainly through the joint venture,cooperation,sole proprietorship of these three forms.Sole proprietorship has become the most important FDI in Ho Chi Minh City,mainly invest in the secondary and third industry,the industrial structure to be further optimized.Secondly,this paper analyzes,establishing the econometric model of Ho Chi Minh City by using the cointegration test and the error correction model.The study finds that investment is one of the key factors to promote the economic growth of Ho Chi Minh City.Both FDI and domestic investment play a positive role in promoting and promoting the economic growth of Ho Chi Minh City.There is a long-term,stable cointegration relationship between foreign direct investment and the economic growth of Ho Chi Minh City.In order to improve the scale and quality of foreign direct investment,and play on the long-term promotion of economic growth in Ho Chi Minh City,this paper puts forward the development of economic and technological infrastructure,improve the quality of human resources to meet the investors requirement,strengthen the absorption of high-tech policy recommendations.