The Impact of Foreign Direct Investment on Economic Growth in Vietnam

Objective: This article examines the relationship between foreign direct investment (FDI) and Vietnam's economic growth in the period 1991-2023. Theoretical Framework: Based on the theory of foreign investment and economic growth of economists such as Mankiw, Romer, and Weil (1992), Jones (1995), Binh & Lang (2008), and Tung & Duong (2019), the research team built the regression model that shows the relationship between FDI and GDPr. Method: The author collected data on FDI, and GDPr (variable representing economic growth) in the period 1991-2023 from GSO, International Financial Statistics, WB. The collected data was analyzed by software Eviews12. Results and Discussion: the results showed GDPR of one previous year and GDPR of the year under consideration has a positive relationship when last year's GDP fluctuated by 1%, GDPR of the year under consideration will fluctuate by 0.381721%. Between FDI and GDPR, there is a positive relationship, when FDI fluctuates by 1%, GDPR will fluctuate by 0.020825%. Research Implications: Research results support the view that foreign direct investment (FDI) plays an important role in promoting economic growth (g) in Vietnam. Originality/Value: From the research results, the author makes a number of recommendations to promote the attraction and effective use of foreign direct investment capital, supporting economic growth.