A Comparative Study On Chinese And Japanese Direct Investment In Vietnam

It has been 30 years since Vietnam first opened the country's door to encouraging foreign direct investment in 1988.In these thirty years,the contribution of foreign direct investment to Vietnam's economic development is undeniable.Among them,as the first Asian economic miracle,Japan's FDI has always been an important part of Vietnam's growth;on the other hand,being the new emerging Asian country,China's FDI is also increasing year by year and has huge potential.Therefore,strengthening Vietnam's attraction of direct investment from China and Japan would have a major impact on the future economic development of Vietnam.This paper compares the characteristics of the two,explains the reasons for their different characteristics,and understands the economic effects they have brought to Vietnam.At the same time,it puts the two countries' direct investment in Vietnam in the context of the recent changes in economic strength of China and Japan as well as their foreign investment policy,and give policy recommendations for Vietnam.Through the research process,this paper believes that:1.Japan's direct investment in Vietnam is earlier,large-scale,and more into high-tech industries;while China's direct investment in Vietnam growth faster,have a great potential,and wider geographical distribution.2.Both China and Japan's FDI have positive and negative effects on Vietnam's economy.Among them,Japanese investment brings a greater structural improvement in the economic industry,while China's investment brings a reduction in the regional economic gap;Japan's investment has a great technology spillover effect,but also is making Vietnamese economic development become more and more dependent on foreign companies;while the major problem of China's investment is backward technology transfer.3.Japan's economic stagnation,China's economic boom,and the competition for influence of the two countries is making such tremendous changes in their outward FDI policy,which gave developing countries such as Vietnam a great opportunity.Finally,from the above background,suggestions are given to enhance Vietnam's attraction of direct investment in China and Japan.