Impacts of FDI on the economic growth of Ho Chi Minh city : The period 1988-2010
Abstract
FDI has been an important source of capital for the development of Vietnam, especially in Ho Chi Minh City. The city is considered one of the most attractive destinations for FDI. This thesis will cover the impacts of FDI on the economic growth of Ho Chi Minh City. To understand about this issue, the study will look into the facts about FDI inflows into Ho Chi Minh City. In detail, the structure of FDI into the city will be researched and analyzed. The contributions of FDI to the economic growth of the city will be reviewed. For example, the good influence of FDI
on the employment of Ho Chi Minh City is a very important benefit that will be examined. How many jobs that FDI directly and indirectly creates is one issue to be looked into. Moreover, this study will also investigate the positive effect of FDI on industrial growth, export, and GDP of Ho Chi Minh City. After that, the negative influence of FDI on the economic growth will also be considered to have the whole picture about FDI into Ho Chi Minh City. From the analysis conducted, recommendations on FDI policies will be given to improve the process of controlling FDI inflows to the city.
Statistical analyses will be conducted several times to understand more exactly about the FDI capital inflows into Ho Chi Minh City. Most of the numbers are from the statistical yearbooks published by the Ho Chi Minh City Statistical Office. There are also data from the World Bank and other sources used in this thesis study.
In general, many factors will be considered to help us comprehend about the relationship between FDI and economic growth in the case of Ho Chi Minh City. In this study, the descriptive statistical approach, comparisons, and cointegration and causality tests will be applied to test the relationships between the variables in
question.