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Improving socio-economic efficiency of Ho Chi Minh City’s FDI enterprises towards sustainable development

Ho Chi Minh City (HCMC) is known as the economic leader of Vietnam. This city also makes a major contribution to Vietnam’s state budget revenue. The reality of the socio-economic development of HCMC reveals that the Foreign Direct Investment (FDI) sector has made important and effective contributions in terms of exports, state budget revenue, job creation and income. | VNU Journal of Science Economics and Business Vol. 35 No. 5E 2019 72-83 Original Article Improving Socio-economic Efficiency of Ho Chi Minh City s FDI Enterprises Towards Sustainable Development Nguyen Duc Hoang Tho Tran Quoc Tuan University Co Dong Son Tay Province Hanoi Vietnam Received 03 December 2019 Revised 27 December 2019 Accepted 27 December 2019 Abstract Ho Chi Minh City HCMC is known as the economic leader of Vietnam. This city also makes a major contribution to Vietnam s state budget revenue. The reality of the socio-economic development of HCMC reveals that the Foreign Direct Investment FDI sector has made important and effective contributions in terms of exports state budget revenue job creation and income. However the investment efficiency of this sector and technology transfer through FDI has not been as high as expected. Using secondary data this article analyzes and assesses the socio-economic efficiency of the FDI sector in HCMC according to some criteria namely investment efficiency export state budget revenue technology transfer job creation and income generation. On that basis some policy recommendations are proposed to improve the socio-economic efficiency of the FDI sector in HCMC in the direction of sustainable development including i enhancing to attract and use FDI consistently with the socio-economic development strategy of HCMC ii continuing to formulate and complete investment incentive policies and tax policies iii improving the effectiveness and efficiency of state management and iv developing human resources science and technology to create necessary prerequisites for absorbing positive spillover effects as well as limiting the negative impact of FDI inflows. Keywords FDI Ho Chi Minh City socio-economic efficiency. 1. Introduction development. These advantages contribute to bring HCMC to its position as the economic Compared to other cities and regions of leader the center of culture - education science Vietnam HCMC has the .