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The economic impact of foreign direct investment flows on Vietnam: 1988–98

Vietnam's economic transition towards a market-oriented economy, or doi moi, began in 1986 and has attracted international attention, including that of foreign investors. A large amount of foreign direct investment (FDI) has been committed in Vietnam and by 1996, Vietnam had become the second largest recipient of FDI in the world in terms of FDI as a percentage of gross national product (World Bank 1997a, 17). This article reviews the flows of FDI to Vietnam between 1988 and 1998, analyses the contribution of FDI flows to Vietnam's socioeconomic development, and discusses the role of government policies in promoting and making use of FDI flows.