FDI Policies of Vietnam Since 1977

Abstract FDI plays an important role in promoting the economic development of a country. In the globalization, the FDI wave has grown rapidly and become an essential source of capital for developing countries. In Vietnam, FDI contributes 20.13% of GDP, accounts for 72% of total export value, about 50% of industrial output (Central Economic Committee). Vietnam is the third-largest destination for foreign direct investment (FDI) in Southeast Asia, driven by its strategic location, competitive labor costs, and rapidly growing consumer market. The FDI policies in Vietnam has undergone many modifications and upgrade to be suitable with the new context of the international condition. FDI has contributed a large proportion to the completion of socio-economic development plan targets and is one of the most important external resources of Vietnam in the process of industrialization and modernization of the country.