US Direct Investment in Vietnam

3.2.4 Some specific solutions

3.2.4.1 Improving the quality of human resource training to meet the requirements of investors from the United States

When foreign investors invest in the production and business process, they must consider the input factors in their operations. In particular, human resources are the factor that foreign investors expect in the country receiving investment. At the same time, it is also the basic factor to bring benefits to investors. Therefore, human resources can be considered one of the factors that make up the investment attraction environment. Human resources reflect the exploitable potential of investors, at the same time, the quality of human resources will affect the health or unhealthiness of the investment environment. When countries and localities have a rich and good quality human resource, they will have conditions to attract investors.

In the investment process, US investors in particular and foreign investors in general always calculate the scale and structure of their investment capital. Human resources are also one of the conditions for investors to calculate the scale and structure of investment. Depending on each different industry, the demand for human resources is different. Therefore, the structure of human resources will directly affect the structure of investment capital. Therefore, to attract investment capital towards the goal of developing the socio-economic structure of a country or a locality, it is necessary to first prepare human resources in that direction, only then can attracting investment capital achieve the set goals.

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It can be said that the efficiency and ability to attract investment capital of a country are relatively highly affected by human resources. Therefore, human resource development is a solution to ensure the sustainability of economic development, while also creating attractive conditions for attracting FDI capital from the United States. The United States is a country that can be strong in engineering and technology. To take advantage of that strength

Vietnam needs to have a qualified workforce to adapt. Therefore, in order to attract more investment capital from the United States in the future for human resource development, it is necessary to implement the following solutions:

- Linking education and training with production labor and scientific research. Linking schools with production and scientific research facilities will create favorable conditions for implementing the requirement of learning closely linked to life.

- Expand and develop vocational training centers, coordinate with foreign investors to provide vocational training for workers right at joint venture enterprises, 100% foreign invested capital. Diversify forms and methods of training technical workers, to create flexibility and creativity in education and training.

- Strengthen international cooperation in the fields of education and investment, especially investing in a team of business managers, high-level experts, and skilled technical experts, ensuring international standards in capacity and qualifications.

- For managers working in US enterprises, different measures should be taken: Organize short-term courses taught by foreign experts, organize training on expertise, profession, and law for Vietnamese officials working in US enterprises. Joint venture companies should have a plan to send employees to the US for internship. This is an effective way to have a highly qualified team.

3.2.4.2 Expanding multi-faceted cooperation to create a favorable environment to attract FDI from the United States

- Expand and strengthen trade relations on the basis of the Vietnam - US Trade Agreement signed in 2001. Maximize the benefits from the implementation of this Agreement and minimize negative impacts.

- Negotiate and sign a framework agreement between the US investment bank and the State Bank of Vietnam to facilitate access to financial resources to implement US investment projects.

- Strengthening trade cooperation between Vietnam and the United States. There is a close relationship between investment and trade. Increasing US investment will lead to increased imports of machinery and equipment from the United States, and increased exports to the United States. With the orientation of production for export, when two-way trade between Vietnam and the United States increases, US investment in Vietnam will increase accordingly and US investment will supplement and support trade. Therefore, strengthening trade cooperation with the United States will have the effect of supporting the attraction of investment from the United States.

3.2.4.3 Building domestic partnerships.

Recently, the number of joint ventures between the United States and Vietnam has decreased sharply, mainly due to the limitations of Vietnamese partners in management and operation capacity.

To conduct business investment in a country, in addition to searching for markets, security, political and social situations, investors are very interested in the investment partners of the host country. Therefore, to create domestic investment partners with sufficient capacity in joint ventures and effective investment cooperation with US investors, we need to continue to consolidate and develop enterprises, especially continue to reorganize and innovate to improve the efficiency and competitiveness of state-owned enterprises, build strong economic groups based on state-owned corporations, with the participation of economic sectors, encourage investment from all economic sectors and improve the production and business capacity of enterprises.

The 10th Party Congress pointed out: "Promote the formation of a number of strong economic groups and state-owned corporations operating in multiple sectors and fields,

in which there are major industries with many owners, state ownership plays a dominant role" [5, p232]

In order to create competitive partners and enhance the country's position and strength in international economic integration, it is necessary to build and develop strong state-owned economic groups as the core. These economic groups must be large-scale, internationally competitive and operate effectively. The organizational structure follows the model of a parent company - multi-owned subsidiary, conducting multi-industry, multi-field and international business activities. The formation of state-owned economic groups will contribute to ensuring that state-owned enterprises play a key and core role so that the state can promote its leading role in the national economy; that is, to create a strong state economic force, playing a leading role in the process of achieving the goal of rapid economic growth, improving business efficiency and competitiveness, and promoting technological innovation. In the immediate future, it is necessary to consolidate and develop corporations 90 and 91, focus on increasing capital and advanced technology, implement a strategy to diversify production and business towards multi-field, multi-product and scope of operations, promote equitization of member enterprises towards equitization of the whole company, carry out specialization of activities of member enterprises, encourage linkages between them, create a satellite network of small and medium-sized enterprises, clearly define the functions, tasks, powers and relationships between the board of directors, general director, and board of supervisors in each specific field.

Currently in our country, there are enterprises in the private economic sector that are tending to expand production and business, forming independent business groups with legal status, but under the management of a group of owners that has become clear. If supported by the state, this is also a path to forming a corporation, although slow but sure, creating strength.

strong domestic and foreign businesses. These businesses will be able to form joint ventures and partnerships with US companies.

3.2.4.4 Continue to upgrade and build physical and technical infrastructure

Experience from countries in the region shows that places with good facilities and technical infrastructure are more attractive to investors and vice versa. Therefore, infrastructure construction must be considered a prerequisite, mandatory not only for immediate and long-term requirements, not only creating a premise for attracting investment but also for sustainable economic development. As analyzed in Chapter 2, US investors often invest mainly in locations with favorable infrastructure, so it is necessary to pay attention to upgrading investment to make it more attractive to investors.

For infrastructure serving the general development needs of the economy such as: Transportation system, roads, railways, waterways, seaways, aviation, ports, etc., there needs to be a plan to focus on investment to complete a complete, synchronous and convenient transportation network for transporting goods between localities, regions in the country and internationally. The transportation system must ensure safety and convenience, contributing to minimizing transportation costs to the maximum extent, improving production and business efficiency, complying with the plan, avoiding dispersion and waste. In addition, there needs to be a plan to implement investment in infrastructure directly serving production and business such as warehouses, yards, electricity, water, waste treatment, fire and explosion prevention, etc., especially infrastructure for concentrated industrial parks, export processing zones, paying attention to infrastructure to encourage supporting industries, places that need to strongly attract foreign investment.

For industrial zones, it is not advisable to build industrial zones on a small scale, scattered and with inadequate investment. To do this, it is necessary to have a specific strategy and plan for both the short and long term, focusing on

Key projects, avoid spreading out. To attract TNCs, it is necessary to focus on building a number of large-scale high-tech zones.

In addition to infrastructure serving production, attention should be paid to social infrastructure such as entertainment areas, housing for experts and workers, medical examination and treatment conditions, etc. to create favorable conditions for production and business and attract investors.

CONCLUDE

The United States is the most developed country in the world and the world's economic and political center with a large market. With its prominent role in the world's economic life, FDI capital from the United States has made important contributions to international investment activities in general and foreign direct investment in Vietnam in particular.

The practice of FDI activities in Vietnam over the past 20 years shows that FDI capital from the United States has made positive contributions to the socio-economic development of Vietnam, creating the initial material foundation for the country's industrialization and modernization process. With investment focusing on important areas of the economy such as telecommunications, oil and gas, heavy industry, transportation, finance and banking, hotels and tourism, etc., it has contributed to shifting the structure of Vietnam's economy towards progress. Through FDI capital from the United States, Vietnam has the opportunity to learn from the experience of the world's most developed countries; solve difficulties in capital, technology and production techniques; improve technology, etc. At the same time, it also allows Vietnam to solve some of the jobs for workers, train abundant and quality human resources to create high efficiency in labor.

In addition to certain advantages, there are still difficulties and shortcomings in the picture of US investment in Vietnam, although the Vietnam-US relationship is getting better and better, marking many successful steps in the economic relationship between the two sides. FDI capital from the US to Vietnam in recent times has not really been commensurate with the potential of the US and the diplomatic relations between the two countries. Therefore, Vietnam needs to have positive measures to further attract FDI capital from the US in the coming time.

LIST OF REFERENCES

VIETNAMESE DOCUMENTS

1. Dinh Van An (2006) , “Analysis of foreign direct investment policy from the perspective of sustainable development”. Journal of Economic Management, No. 8.

2. Le Xuan Ba (2006) “The impact of Foreign Direct Investment on economic growth in Vietnam”. Science and Technology Publishing House.

3. Electronic newspaper - Vietnam business forum - FDI from the United States to Vietnam will increase sharply (updated June 25, 2007) Website: http://dddn.com.vn

4. Ministry of Planning and Investment, website: www.mpi.gov.vn/fdi/

5. Ministry of Planning and Investment (2005) “The impact of the US - Vietnam bilateral trade agreement on overall and US foreign direct investment in Vietnam” = The impact of the US - Vietnam bilateral trade agreement on overall and US foreign direct investment in Vietnam Publishing House: National Politics.

6. Communist Party of Vietnam - Documents of the 10th National Congress of Delegates, National Political Publishing House, Hanoi.

7. Nguyen Sinh Cuc (2005) “Prospects for attracting foreign direct investment from the United States.” Numbers and Facts Magazine, No. 7.

8. Nong Viet Cuong (2005) “Successful experience in attracting foreign direct investment in China.” Journal of Southeast Asian Studies, No. 2.

9. Hoang Thi Chinh (2001), “US direct investment in Vietnam: Current situation and prospects”, Economic Development Journal, No. 28.

10. Pham Manh Dung (2004) “Investment regulations in the Vietnam - US Trade Agreement and their impact on the foreign investment environment”