Impact on Developed Industrial Countries

- FDI projects contribute significantly to the budgets of countries . In addition to the impact of promoting GDP growth, with their effective operations, FDI enterprises will make a significant contribution to the budget revenue which is often in a deficit situation of developing countries. Because when welcoming a foreign investor into the country, the Government can take into account many different revenues from these enterprises, such as: land, water, and sea rental fees; fees and charges for business activities and living of foreign businessmen; taxes such as import and export tax, corporate income tax, personal income tax, some countries even tax the transfer of capital and profit rights to the country.

14 World Investment Report 2008, UNCTAD, p.3.

15 Does Foreign Direct Investment promote development?, Theodore H. Moran, Edward Montgomery Graham, Magnus Blomstrom, 2005, p.175.

- Foreign investment contributes to the development of human resources and creates more new jobs for the recipient countries . FDI projects have high requirements for the quality of labor resources, so the development of FDI in host countries has set an objective requirement to improve the quality of foreign languages ​​and professional qualifications of workers. On the other hand, foreign investors have also actively contributed to training and fostering the workforce in the host country. FDI projects also contribute to attracting a large number of workers, contributing to solving unemployment. Studies also show that FDI not only creates direct jobs for workers but also indirectly creates many jobs for workers in related industries such as supplying raw materials, consuming products, etc. Normally, the ratio of direct labor and indirect labor related to the FDI sector is 1/3 and 1/4. Thus, the actual number of workers who find jobs from FDI capital is very large, contributing an important part to solving the problem of unemployment, one of the common obstacles in developing countries in the process of economic modernization.

- The activities of FDI projects have an important impact on the export activities of host countries . For developing countries, when entering the process of economic modernization, they are often in the position of countries lacking in technology, machinery, equipment, and even consumer goods. At that time, countries often implement import substitution production strategies and then export orientation by taking advantage of their advantages in abundant natural resources, cheap labor, and low production costs. The desire to have an export-oriented production of these countries is consistent with the "effectiveness-seeking" goal of foreign investors, especially multinational companies and corporations (TNCs), who are holding a dominant position in international investment activities. These companies have a global network of branches, they already have product distribution channels, they have experience and expertise in product development and international marketing, and they have the advantage of taking advantage of differences between countries in production costs. Moreover, from participating in export joint ventures, witnessing the export strategies of TNCs, these countries have

Learned many useful lessons on how to penetrate the world market, gained a deeper understanding of export markets and was able to expand his own foreign trade relationships.

- With the policy of attracting FDI capital in reasonably oriented industries, FDI capital will actively contribute to shifting the country's economic structure towards industrialization, modernization, and acquiring modern production technology . It is easy to see that when a foreign investor brings capital to a developing country, it is often an investor from a country with a higher level of development, they bring here advantages in capital and modern technology. At the same time, developing countries, when attracting FDI to serve economic development, also proactively direct this capital to industries and fields that need to be developed, requiring high production levels that domestic capacity has not yet achieved, such as electronics, telecommunications or manufacturing industries or essential fields for industrialization - modernization such as building communication infrastructure, banking and finance systems, etc., but requiring a lot of capital. With the strategic coordination of the two partners, FDI sources have been directed to key economic sectors as well as new economic sectors that are important to the development of the economy such as oil and gas exploitation and processing industry, mechanical engineering industry, electronic component assembly and production, etc. These are typical sectors of an industrialized economy.

II. Overview of the electricity industry

1. Electric energy

Nowadays, the demand for electricity is very necessary and electric energy is indispensable in almost all areas of society. It is due to the strong and continuous development needs of society that the electric energy industry must also develop to meet that demand. For every country in the process of industrialization and modernization, energy in general and electric energy in particular are indispensable conditions for successful implementation. Electricity is an important "input" for the production of products and goods, and at the same time affects the entire development of the economy. Modernization can only be carried out on the basis of industrialization, which electricity

Energy is a special type of energy, indispensable for the development of all industries. Nature around us is very rich, the source of electrical energy is also very abundant. Coal, oil and gas, water, sun, wind, ... are very large and valuable sources of energy for the electricity supply industry as well as for human life.

Energy in general is very large in the universe. Solar energy alone has reserves tens of billions of times greater than the annual global energy consumption. But energy is increasingly becoming a matter of concern for the world. That is understandable, for energy to be used at the consumer level, primary energy must go through many stages such as mining, processing, transportation and distribution. These stages require many financial costs, technical costs and social constraints. The efficiency through the stages from primary energy source to usable energy is very low.

Primary energy exists in the forms of: chemical energy, hydro energy (potential energy), kinetic energy, thermal energy, mechanical energy and nuclear energy.

Electric energy (also known as electricity) is now a very popular form of energy. The annual electricity output in the world is increasing, reaching about thousands of billions of kWh. The reason why electricity is so popular is because it has many advantages such as: easy to convert into other forms of energy, easy to transmit over long distances, high efficiency, etc.

Electricity in the process of production and distribution has three main characteristics:

This:

- Firstly, although electricity is a product of labor, electricity

Invisible energy, produced without inventory, can be stored (except in some special cases with very small capacity such as batteries, accumulators, etc.). Electricity is produced when there is enough capacity to consume because the characteristic of the power system is that at any time there is a balance between the output power and the consumed power (cannot be stored).

- Second, electrical processes occur very quickly. For example, electromagnetic waves propagate in conductors very quickly, approximately at the speed of light. The short circuit process,

Lightning waves propagate, electrical equipment switches on and off, protective equipment operates, etc. all occur in less than one-tenth of a second.

- Third, because electricity is both the output and the input of production and consumption activities in society, electricity is a commodity that producers provide to consumers through the power system. The process of trading electricity must go through three basic stages: generation, transmission and distribution. These three stages occur simultaneously, forming an electricity system. The electricity system is a collection of electricity sources, electrical loads connected together by transformer stations, switching stations, current conversion stations and power grids with different rated voltage levels. The electricity system is responsible for producing, transmitting, distributing and using electricity, without going through any intermediate commercial stage. The operation of the electricity system requires continuity, stability and consistency.

2. Power plants

The plant that produces electricity is called a power plant. The fuel used for power plants is natural resources such as coal, peat, gas, oil, water, solar, nuclear energy, etc. To rotate the generators, people must use primary motive power machines such as steam engines, internal combustion engines, gas turbines, thermal turbines, hydraulic turbines, etc. Depending on the type of energy used for those primary motive power machines, people divide power plants into types such as thermal power plants, hydroelectric power plants, gas turbine power plants, nuclear power plants and small capacity power plants such as wind power plants, solar power plants, diesel power plants, geothermal power plants, tidal power plants, etc. Normally, all power plants are located far from residential areas and are often arranged near places where fuel is available. After being produced at power plants, electricity will be transmitted and distributed to electricity consumers through the power grid.

2.1. Thermal power plant

This is a classic type of power plant, and to this day the electricity produced by this plant still accounts for an important proportion of a country's total electricity output.

Figure 1: Principle of energy conversion in thermal power plant

The fuel used to burn the furnace is coal, peat, gas, heavy oils, bamboo, etc. The thermal energy evaporates water at high temperature and pressure (about 550 0 C, 250at/cm2 ) acting on the turbine blades, this mechanical energy rotates the generator shaft and the generator generates electricity. There are two types of thermal power plants: steam extraction thermal power plants and condensing thermal power plants. Thermal power plants have the following characteristics:

 Usually built near fuel sources.

 Most of the electricity produced is transmitted to the high voltage grid.

 Poor operational flexibility.

 Slow start-up and load increase.

 Large fuel consumption, fuel transportation is quite expensive and emits smoke that pollutes the environment.

 The efficiency of a thermal power plant is about 30% - 40% for a condensing thermal power plant, 60% - 70% for an extraction thermal power plant with optimal heat load.

2.2. Hydroelectric plant

In a hydroelectric plant, water energy is converted into electrical energy by hydraulic turbines that rotate the rotors of generators. The power of a hydroelectric plant is proportional to the height of the water column and the flow of water through the turbine. The hydraulic turbine is located downstream, where there is a channel to lead water into a spiral chamber and into the rotor blades of the hydraulic turbine, which is coaxially mounted with the generator rotor on the upstream side. Thus, the hydroelectric energy through the hydraulic turbine is converted into mechanical energy and then converted into electrical energy.

Figure 2: Principle of energy conversion in hydroelectric power plant

Hydroelectric plants have the following characteristics:

 Uses water energy so it does not pollute the environment.

 The equipment is relatively simple and almost fully automatic.

 Few operators (only about 1/20 of thermal power plants with the same capacity).

 The cost of producing 1 kWh of electricity is the cheapest compared to other types of power plants (only 0.08 to 0.2 times the cost of electricity of a thermal power plant).

 The load receiving time of hydroelectric power plants is very fast. Therefore, hydroelectric power plants ensure to receive the fluctuation of electricity load during the day very well.

In addition to the conventional hydroelectric power plant, there is also a pumped storage hydroelectric power plant. This plant has two reservoirs (one upstream, one downstream) located at two different heights. The plant operates in two modes: power generation mode and power consumption mode. When the power system has a minimum load, the plants operate in motor mode, and the turbine is in pump mode, meaning the generator consumes power from the power system to pump water from the downstream reservoir to the upstream reservoir. This operating mode is called the stored storage mode. Conversely, when the load of the power system is at its maximum, the system needs electricity, water flows from the upstream reservoir to the downstream, rotating the turbine, rotating the generator, producing electricity and supplying it to the system. Thus, pumped storage hydroelectric power contributes to flattening the load curve of the power system, improving economic efficiency in operating thermal power plants.

2.3. Nuclear power plant

Nuclear power plants use nuclear reactors to provide heat to turn water into steam with high temperature and pressure, this steam rotates the turbine generator and generator to produce electricity. Nuclear fuel has the ability to generate very high heat, for example, the decomposition of 1 kg of U235 produces heat equivalent to burning 2,900 tons of coal. Therefore, nuclear power plants are very important in areas where coal, oil, and gas are scarce and in areas where it is difficult to transport raw materials. To produce electricity, nuclear reactors use Uranium. In its natural state, this ore is 99.3% Uranium 238 and 0.7% Plutonium. The heat obtained