The impact of economic globalization on foreign direct investment flows into Vietnam

of the Second Millennium. Most scholars agree that globalization takes place in all fields, the most prominent of which are: economic globalization, political globalization, ecological and environmental globalization, cultural globalization and information globalization.

The manifestations of globalization are also very diverse. In particular, a global infrastructure based on knowledge, science and technology and a superstructure are gradually being formed through the establishment of more and more international institutions and organizations specializing in different fields. In the economic field, globalization is specifically manifested in the following aspects: First , the capital market including foreign direct investment (FDI), official development assistance (ODA), bilateral and multilateral loans, investments through the stock market, etc., is expanding in scale, moving rapidly in a more liberal direction; Second , the goods and services markets of economies are expanding and shifting strongly in structure, becoming more interconnected and interdependent; Third , global human resources have matured in quality, mobilized and used in many new and more diverse forms with the support of information technology and new methods of production management and product distribution; Fourth , science and technology have achieved outstanding and superior achievements, have been transferred, applied and are playing an increasingly important role as an input factor of production, initially creating the foundation for a global knowledge economy; Fifth , a global economic architecture is being formed with many international economic links and institutions continuing to be consolidated, perfected, or newly established to meet the requirements of management and regulation of new economic relations that are increasingly intertwined and more complex between countries.

Some authors or organizations such as IMF, WB or WTO also focus on research on the impact of globalization on the world economy . For example, IMF wrote in the 1997 World Economic Outlook report as follows:

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Globalization means the growing economic interdependence of the world's nations through greater cross-border trade in goods and services, international capital flows, and the rapid diffusion of technology. Globalization presents both challenges and opportunities for economies and policymakers. At a broad level, the welfare benefits of globalization are essentially similar to those of specialization and the expansion of markets through trade, as classical economists have emphasized. By creating greater international division of labor and more efficient allocation of savings, globalization raises average productivity and living standards, while access to foreign products allows consumers to enjoy a wider range of goods and services at lower costs. Globalization also brings benefits, for example by allowing a country to mobilize a larger financial value (as investors have wider access to a range of financial instruments in different markets) and by increasing the level of competition between firms [71, p.45].

The above impacts of globalization are not equal for developed and developing economies. Developed capitalist countries, with strong economic potential, abundant capital, technology, management experience and highly skilled human resources, will be able to influence and influence the global economy at a larger level and scale. Meanwhile, developing countries, due to limited resources, will be less able to influence the international economy, but on the contrary, will be more affected and dependent on the world economy. This also means that the profits and risks from globalization will certainly be at different levels among these economies.

On the impact of economic globalization on foreign direct investment flows , based on classical economic theories, combined with practice

In the process of economic globalization in the past two decades, some authors have tried to develop some theoretical models of FDI in the globalization period; research on the movement of global FDI in relation to human resources, natural resources, and the trend of liberalization of trade in goods and services... According to the OLI model developed by author John Dunning and some other researchers, factors such as capital ownership, investment location and localization process are emphasized as decisive factors for FDI flows. Some other authors tend to favor the "attraction" and "push" models for FDI. Meanwhile, according to the authors He Liping of the National Institute of Finance, Banking and Economics of China (Impact of Globalization on China: An Accession with regard to China's Reforms and Liberalization) and Deepack Nayyar (2000) of the World Institute for Development Economics (Cross-border movements of people), FDI flows operate under the influence of the trend of global unification of production factors. Some other studies emphasize the impact of science and technology, of TNCs, of international economic and financial institutions or of macroeconomic policies on FDI.

Regarding the impact of economic globalization on FDI flows into Vietnam , authors such as Nguyen Van Dan (Issues of Economic Globalization. 2001); Vo Dai Luoc (Current foreign economic relations of our country: situation and solutions. 2004); Tran Van Tho (New opportunities for FDI in Vietnam. 2005) emphasized the impact of improving the investment environment and Vietnam's policy of international economic integration on FDI. Meanwhile, authors Nguyen Nhu Binh and Jonathan Haughton (Trade Liberalization and Foreign Direct Investment in Vietnam. 2002) emphasized the impact of market opening and WTO accession on FDI flows. According to the two authors, with Vietnam increasingly integrating more deeply into the world economy and becoming a member of the

As a member of the WTO, FDI flows into Vietnam will increase significantly.

Although the above studies have mentioned some separate aspects of economic globalization and their impacts on the world economy in general, as well as on FDI flows into Vietnam in particular, they have not yet been able to comprehensively and systematically reflect the movement of globalization as well as their impacts on FDI flows, especially the impacts of globalization on FDI flows into Vietnam in recent years. Therefore, the topic of the thesis chosen by the author is completely new and does not overlap with previous studies.

3. Purpose and research tasks of the thesis

The purpose of the thesis is: To study the impact of economic globalization on the movement of FDI flows into Vietnam and to suggest some solutions to exploit the favorable impacts, while minimizing the adverse impacts of economic globalization on FDI flows into Vietnam.

To achieve the above purpose, the thesis needs to solve the following tasks:

- Research the theoretical and practical basis of economic globalization; Identify some basic characteristics of economic globalization in relation to the movement of FDI flows;

- On that basis, determine the impact mechanism of economic globalization on FDI flows;

- Analyze the impact of economic globalization on FDI flows in the world;

- Analyze the impact of economic globalization on FDI flows into Vietnam;

- Draw some conclusions about the shortcomings in attracting FDI to Vietnam in the context of economic globalization.

- Recommend some directions and solutions to take advantage of the positive impacts and minimize the negative impacts of economic globalization on attracting and using FDI in Vietnam; Accordingly, it is necessary to proactively adjust

investment environment, control market factors to attract optimal FDI value to effectively promote the use of comparative advantages of investment attraction factors such as human resources and natural resources.

4. Research object and scope

The research object of the thesis is the process of economic globalization and the impact of this process on the movement of FDI flows in the world and in Vietnam. Although the globalization process can impact many aspects of FDI, from the value, structure of FDI to the use of attracted FDI sources, with the ability to allow and within the framework of a doctoral thesis, the author of the thesis would like to limit the scope of the thesis to the impacts of economic globalization on the value and structure of FDI flows into Vietnam in the period from the mid-1980s to the end of 2006 - when the process of economic globalization began to take place strongly and when Vietnam began to implement the policy of Renovation and opening the economy.

5. Research methods and sources of materials

- Methodological basis : The author takes the dialectical materialism and historical materialism of Marxism-Leninism as the methodological basis of the arguments in this study.

- Theoretical basis : Classical and modern economic theories , FDI theories and some economic models that have been practically tested in the development process of the world economy over the past few centuries will be used in the arguments of the article.

- Practical basis : Figures, data, analysis and arguments from economic and trade organizations of the United Nations, international credit and trade organizations such as the World Bank (WB), International Monetary Fund (IMF), World Trade Organization (WTO), a number of non-governmental organizations (NGOs), from research facilities of countries in the region and around the world, combined with statistical data.

Official data from Vietnamese agencies and organizations will be used to illustrate the thesis's arguments. Due to the statistical system, some figures are only updated to the end of 2004 or 2005. However, to the extent possible, the author will try to find and use the latest figures, in some cases updated to the end of 2006 or to the end of June 2007.

Research method : The author will use the method of comparison, contrast (mainly qualitative), analyze databases to learn about the impact channels of globalization on FDI flows, model this channel and use this model to evaluate the impact of globalization on FDI flows in the world in general and FDI flows into Vietnam in particular. Based on the conclusions drawn from this assessment, the author will suggest some solutions to create conditions for attracting an optimal FDI flow into Vietnam.

6. New contributions of the thesis

o On the theory and practice of the globalization process: The author has systematized the theoretical and practical basis of the economic globalization process and affirmed that economic globalization is an objective trend, both systematic, inherited, and mutative of the world economy. The economic globalization process has a number of basic characteristics related to the movement trend of FDI flows in the world.

o From the characteristics of economic globalization, the author discovers the channels of impact of economic globalization on the movement of FDI flows and on that basis builds a model of the impact mechanism of globalization on FDI flows. Accordingly, FDI flows will be affected by: (1) Global legal environment on FDI; (2) Global market for goods and services; and (3) Production factors, especially human resources globally as well as within the investment-receiving country.

o Based on the model of the impact mechanism of globalization on FDI flows, the impact

The author analyzes the trends, values and structures of FDI flows globally. Accordingly, the process of economic globalization has increased the total value of FDI globally; contributed to gradually shifting a part of FDI flows from developed economies to developing and transitional economies, especially in Asia; shifting the FDI structure towards the service sector and industries that use knowledge and technology.

o Analyze Vietnam's international economic integration process and opportunities for Vietnam in accessing international capital markets, including FDI sources.

o Analyze the impact of economic globalization on improving Vietnam's FDI environment, on the value and structure of FDI into Vietnam through the channels of investment environment, market and production resource factors. Under this impact, the value of FDI has increased relatively stably for nearly 20 consecutive years; the FDI structure has initially shifted towards the service and science and technology sectors.

o Analyze some shortcomings in the process of attracting FDI in Vietnam, emphasizing that Vietnam has not been successful in using internal factors to attract and orient FDI flows into desired fields and to promote its comparative advantages.

o Based on the analysis of the impact of economic globalization on the movement of FDI flows into Vietnam in the past and some forecasts on the movement trend of FDI flows in the world in the coming time, the author suggests some solutions to promote the attraction of FDI into Vietnam through improving the FDI environment, market and production resources. Accordingly, the environment creates the legal basis and infrastructure for investment activities; the market creates the driving force for attracting investment; and resource factors, especially human resources, will play a key role in

Mobilizing and directing FDI flows into Vietnam's desired sectors. Thus, the combination of all three factors above, in appropriate doses and proportions, will be the key to success in attracting FDI in Vietnam.

7. Structure of the thesis

In addition to the introduction, conclusion, table of contents, appendix and references, the entire main content of the Thesis is divided into the following 3 chapters:

Chapter 1: The impact of economic globalization on global FDI flows presents an overview of economic globalization, analyzes the theoretical and practical foundations and characteristics of globalization; identifies the impact channels and analyzes the impact of globalization on the movement of global FDI flows.

Chapter 2: Impact of economic globalization on FDI flows into Vietnam analyzes the impact of globalization on FDI flows into Vietnam in the context of an economy gradually integrating with the world economy.

Chapter 3: Development trends of global FDI flows - some solutions to improve the efficiency of attracting FDI into Vietnam; forecasting the development trends of global FDI flows; Analyzing some advantages and difficulties of Vietnam in attracting FDI capital in the coming time, the effectiveness of exploiting input factors of production to attract FDI and then proposing some solutions to promote the positive impact and minimize the negative impact of globalization on FDI flows into Vietnam.

The impact of economic globalization on foreign direct investment flows into Vietnam - 2

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