This paper is based on the theoretical framework of Low-carbon FDI developed in the World Investment Report 2010 to examine the trend of Low-carbon FDI in Vietnams manufacturing sector. The result of a survey on FDI enterprises awareness of and motivation for their Low-carbon Performance in Vietnam reveals that Low-carbon FDI may enter the country. | Low-carbon FDI in the Manufacturing Sector in Vietnam: A Stable Trend or Only a Temporary Phenomenon Nguyen Thi Kim Anh Tran The Lan1) Abstract Climate change requires the world turning toward green/low-carbon economic development. Likewise, it brings about a new generation of FDI policies at both the international and national levels. As a result, inward Low-carbon FDI (LCF) is encouraged by many host countries. Vietnam received a large amount of FDI in 1988-Aug. 2014, with over 50% of the total registered projects and capital flows in the manufacturing sector. Though some research shows that there is a footprint of LCF flow in this sector, still it is the major source of CO2 emissions in Vietnam. This paper is based on the theoretical framework of Low-carbon FDI developed in the World Investment Report 2010 (UNCTAD) to examine the trend of LCF in Vietnamʼs manufacturing sector. The result of a survey on FDI enterprisesʼ awareness of and motivation for their Low-carbon Performance (LCP) in Vietnam reveals that LCF may enter the country. However, this trend is not stable as most foreign affiliates consider “production cost saving” and “Air/water pollution treatment” as the major locational determinants and there are not yet stringent LCP requirements by Vietnam government. Those foreign affiliates are aware of LCP, and spontaneously apply Low-carbon technology (LCT) in their core production process, require/support LCT implemented by their input suppliers or industrial customers, and are possibly participating in certain LCP value/supply chains. In switching to the new generation of “quality” inward FDI promotion policy, LCF locational determinants in Vietnam should be taken thoroughly into consideration. Key words: Low-carbon FDI (LCF), LCF determinants and drivers 1．Introduction In this millennium, the world is coping with climate change as well as energy and food security. Natural ───────── 1) Faculty of International Business and Economics, University of .
