Foreign direct investment andthe export-oriented industrializationm Vietnam (original) (raw)

This paper aims at analyzing the contribution of the foreign-invested sector (FIS)to Vietnam's export-oriented industrial production during 2001 -2006. By analyzing some key industries of Vietnam, it is found that the FIS's participation in domestic production increased in export-oriented industries. However, currently, the FIS's export production is mainly concentrated in labor-intensive industries in order to take advantage of Vietnam's cheap labor resource ;and their production relies heavily on import of the production inputs. Based on the regression model which examines the determinants of Japan's outward foreign direct investment(FDI)into higher value-added industries in some Asian countries in 1985 -2005, the paper gives some recommendations for Vietnam in realizing its FDI-led transformation into a higher development stage of industrial production.