The Study On China's FDI In Vietnam And Bilatarel Trade

Since the 1950s,the world economy has shown an important feature:foreign direct investment(FDI)and international trade are simultaneously developed on a global scale.The two promote each other and complement each other and make a common structure to promote the development of the world economy.Foreign direct investment(FDI)is the most active and important factor in the development of the world economy.Foreign direct investment(FDI),with the help of cross-border flows of international capital,has achieved global optimization and allocation of capital,labor,technology and management;greatly enhanced the international research,financial,production and trade links,and promote the process of world economic integration.As a result,governments are deeply aware of the role of attracting forging direct investment(FDI)in promoting the development of their economies and have taken various measures to attract FDI from transnational corporations,thus reducing or eliminating international investment barriers,enlarge market around the world.In recent years,Vietnam has become the world's major direct investment market in Southeast Asia.Its stable investment environment,good natural conditions and low labor force have become the driving force for attracting countries' direct investment.China,as an important neighbor of Vietnam,has many similarities with Vietnamese customs and cultural traditions;the political system and economic development model.China has become Vietnam's largest trading partner for many years,reached and exceeded the goal of 2015 that the bilateral trade volume would increase to 600 billion US dollars.With the all-round development of Sino-Vietnamese friendly relations,China's direct investment in Vietnam is increasing.In this paper,the use of Sino-Vietnamese trade and direct investment empirical and economic basic principles,FDI theory to study:China-Vietnam foreign direct investment,and bilateral trade interaction.This paper mainly selects the data of China's FDI,import and export volume in Vietnam from 1995 to 2015 quarterly database,which is based on cointegration test.This study found that traumatic direct investment has a significant effect on promoting the import and export of China-Vietnam.This paper proves the fact that Vietnam's import and export oriented policy is attractive to Chinese investors.It also recognizes that the growth of foreign direct investment can promote the growth of import and export.This means that the import and export of Vietnam is a powerful catalyst for Chinese investors to invest in Vietnam.In the context of economic integration,Vietnam should make full use of China's foreign direct investment,especially the investment of developed countries,increase the import and export volume of Vietnam,the interaction between the two sides trade relations.