FDI and growth in Vietnam: A critical survey. More than ever, countries at all levels of development seek to leverage FDI for development and adopt measures aimed at improving their investment climate. Despite the exhaustive literature on the topic however, results on growth effects of FDI still remain controversial. | Journal of Economics and Development Vol. 15, , December 2013, pp. 91 - 116 ISSN 1859 0020 FDI and Growth in Vietnam: A Critical Survey Tran Thi Anh Dao Rouen University, France Institute of Research for Development Email: Dinh Thi Thanh Binh Foreign Trade University, Hanoi, Vietnam Email: dinhdieubinh@ Abstract More than ever, countries at all levels of development seek to leverage FDI for development and adopt measures aimed at improving their investment climate. Despite the exhaustive literature on the topic however, results on growth effects of FDI still remain controversial. Notwithstanding the absence of any robust conclusions on the direction of causality between FDI and growth, most developing countries continue however to pursue policies aimed at encouraging more FDI inflows. This paper provides an overview of economic reforms related to foreign investment in Vietnam as well as the main trends and patterns of FDI inflows. It discusses the literature on FDI, summarizes the main studies which have analyzed the impacts in Vietnam and suggests some research directions. Keywords: Foreign Direct Investment, exports, growth, causal relationship, Vietnam. Journal of Economics and Development 91 Vol. 15, , December 2013 1. Introduction ty of the production process, has made the entrance of Transnational Corporations (TNCs) in manufacturing and services the key vehicle of international integration. On the other hand, trade and FDI have given a specific dimension to the rapidly growing East Asian countries by contributing to the acceleration of industrial growth and structural change along their development process. Such a successful experience has reinforced policy prescriptions of the international organizations in favor of trade liberalization and the opening of domestic markets to foreign capital. From the point of view of developing countries, globalization has thus been perceived as a process .
