Over the past 25 years, foreign direct investment (FDI) including FDI from China to Vietnam has been increasing. As of May 2014, China's FDI consecutively rose in position, size, form changes, fields and geographical expansion. Research suggests that in attracting FDI of China, Vietnam should follow procedures from theory to practice with national interest the priority, and improve capacity and manner for the authorities and businesses in Vietnam. | Vietnam Social Sciences, (170) - 2015 China FDI in Vietnam after Twenty Years Nguyen Dinh Liem * Abstract: Over the past 25 years, foreign direct investment (FDI) including FDI from China to Vietnam has been increasing. As of May 2014, China's FDI consecutively rose in position, size, form changes, fields and geographical expansion. Research suggests that in attracting FDI of China, Vietnam should follow procedures from theory to practice with national interest the priority, and improve capacity and manner for the authorities and businesses in Vietnam. Key words: Foreign direct investment; China; Vietnam. For the past 25 years since the Vietnam National Assembly passed the Law on Foreign Investment (December 1987), foreign direct investment in Vietnam has increased and become a breakthrough in the process of integrating international economy. Vietnam’ big market potential attracted international investors, including those countries implementing the embargo against Vietnam could not ignore. Typically, some US investors from 1989 through third countries implemented several FDI projects in Vietnam despite the fact that until 1994 President Bill Clinton lift embargo. According to Foreign Investment Department - Ministry of Planning and Investment, as of May 20, 2014, there were 16,589 valid FDI projects in Vietnam, with a registered capital of over 239 billion USD, operating capital was over 81 billion USD. Foreign direct investment in Vietnam has really made significant contributions to the socio-economic development Vietnam. However, there are still some concerns about obstacles against Vietnam regarding new challenges in receiving FDI to develop more effectively and sustainably. In the wave of FDI to Vietnam, China emerged to become a 20 potential partner with investment volume has continuously grown since 1991. 1. Reality of China direct investment in Vietnam China's FDI to Vietnam started in late November 1991 with a Guangxi enterprise (China) joint .
