Study Of Foreign Direct Investment's Effect On Foreign Trade Competitiveness In Vietnam

The development of economic globalization enhances the flow of all elements around the world. As the colligation investment, foreign direct investment (FDI) attracts more attention. Foreign trade reflects a country' s competitiveness in the international market. The effect of FDI on host country' s foreign trade is remarkable. It means that FDI can expand host country' s foreign trade and impel host country' s products to go into the international market, without exception of Vietnam. The relationship between FDI and Vietnam' s foreign trade is deep and far. FDI has affected both the quantity and the quality of Vietnam' s foreign trade. The paper analyzes the status of the development of FDI in Vietnam. Based on the definition of foreign trade competitiveness, it analyzes the realities of Vietnam' s foreign trade competitiveness. This paper focuses on analyzing the FDI' s effect on Vietnam' s foreign trade competitiveness. It expounds the mechanism which is how FDI affects foreign trade competitiveness and testifies the interrelation between FDI and Vietnam' s foreign trade competitiveness by using statistical data. The conclusion is that FDI' s effect on Vietnam' s foreign trade competitiveness is significant. It also describes the trend of the effect discussed. Finally this paper expounds the strategy by which Vietnam uses FDI to improve its foreign trade competitiveness.