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INTERNATIONAL AMERICAN UNIVERSITY

DOCTOR OF BUSINESS ADMINISTRATION


PROPOSAL FOR DBA THESIS

FOREIGN DIRECT INVESTMENT INTO VIET NAM

Submitted in Partial Fulfillment of the Requirements


for the Degree of Doctor of Business Administration (DBA)

Submitted by
LE XUAN LAM
ID: 100820
May 2010

RESEARCH PROPOSAL
Foreign direct investment into Viet Nam
Abstract :
Foreign direct investment (FDI) is a long-term investment of an individual or a
foreign company into another country by establishing an enterprise who is taking in
charge of managing the business.
Foreign direct investment is one of the most vital and concerned question
recently all over the world, not only in the developed industrialized countries, but also
in the third developing countries.
It plays an important role to stimulate the economic growth and has the good
impacts on the economics of not only receiving- FDI countries but also investing FDI
countries.
I.RESEARCH INTRODUCTION
Researching all essential reports on FDI in order to solve some major problem /
so that we find out the best solutions to attract more FDI into Viet Nam
This research report consists of ten major sections as described below.
1. Introduction:
Offering the overview of FDI in Viet Nam
2. Problem Statement:
Offering the base reasons and theories for researching FDI in Viet Nam
3. Research Objectives:
Pointing out the objectives to find the effective solutions on attracting FDI into
Viet Nam
4. Research Question:
Bringing out the questions and finding out the answers for those questions to
stimulate FDI inflows into Viet Nam
5. Literature Review:
Overviewing the real situation in attracting, managing and developing FDI in Viet
Nam, then detailing in Ho Chi Minh citty experiences
6. Research Methodology:
In this section the author explains how the research was conducted, sampling
selection, data collection and analysis.
7. Comparative Analysis:
The authors put into perspective of the literature review, collected data
xperience to attract and use foreign investment in some
countries in relation to the research uestion.
8. Research conclusion:
In conclusion, the author of quantitative analysis to explain the findings of the
study and propose solutions to effectively attract FDIinto Vietnam.
9. Appendix.

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10. Bibliography.

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II.PROBLEM STATEMENT
2.1. Rationale for the research:
The prime Minister brought out couple of problems that affected FDI into Viet
Nam.
1. The administrative procedure is too complicated
2. The project is divided in too many stages which is taking years to fulfill it.
In order to compete with countries in attracting FDI, we do neet to reform our
administration system, so that will taking shorter time for all FDI projects to be finish
Ho Chi Minh city is the leading city in receiving and using FDI inflow. Its
experience is so important for others provinces in attracting FDI as well as improving
the FDI policies of Viet Nam in the future
3. Research objective:
All the research objectives are listed below:
a. The necessities of attracting FDI in to VN
b. All factors effecting FDI inflow
c. Experiences of some countries in attracting FDI that could be appled for VN
d. Some solutions to attract FDI inflow
4. Research question:
The question for research focused on the objectives of exploratory research, the
authors hope to find the answer or answers to this question will allow Vietnam
to attract FDI inflows in the future effectively.
5. Literature review:
5.1 Overview of the topic.
The topic is setting up a panel to study the real situation of attracting, managing
and developing the FDI flows in Ho Chi Minh city – learning the experiences of some
other countries based on research documents, articles, magazines & newspapers
related to FDI topic
5.2 Scope and limitation of the review.
The scope of the review encompasses the following:
a.FDI based on Wikipedia (Vietnamese version)
b. The outstanding features in Vietnamese economy
c. The experiences of some countries in attracting FDI such as China, Rumani,
Korea, Taiwan, Singgapore, hongkong and some countries in Asean group
d. Studying research document, articles, magazines and books of FDI
e. No concern over some fields such as education, health care system, real
estate services and some others
This review is limited to the literature mentioned above, although there are
plentiful of other literature available

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5.3 Discussion:
5.3.1 Historical studies:
Studying history of FDI, we learn that Vietnamese economy has the same intial
basis as some countries such as Korea, Taiwan, Singapore and Hongkong (NiCs).
In the 50s- 60s, those countries were devastated by wars (such as Korea)
especially they are short of natural resources, high populations. They mostly tool
advantages of their cheap labor to attract more investment into their countries.
In China direct investment was launched by the economic and financial policies
sustained by Deng Xiao Ping which is "using cheap labor to exchange for technology".
This was happening in the late 1970s- by the early 1980s- China has continued its
massive growth and is the leader among all developing nations in terms of FDI.
In general, one of the succesful ways to attract FDI is that every country has to
base on their own economic features to figure out their appropriate policies to
stimulate FDI inflows into their countries
5.3.2 Review recommendation:
5.3.3 Literature review summary:
6. research methodology:
6.1 Theoretical framework

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6.2 Hypothesis:
Lack of research and analysis in a systematic factors attract foreign direct investment
into Vietnam to attracting investors inefficient.
6.3 Research intrument:
Author shall use a questionnaire designed to record the subjects surveyed in
order to find out their perception of on matters related to factors attract foreign direct
investment into Vietnam in the levels:
Rating: 1 = Strongly Disagree, 2 = disagree, 3 =do not know, 4 = Agree, 5 = Strongly
Agree.
6.4 Sampling size
Due to limited budget and time, sampling is limited to the manufacturing
sector in the Export Processing Zone & Industrial park Ho Chi Minh City, Vietnam.
Questions for managers
Expected to survey the FDI enterprises in the following locations:

Ordin The area of Total sample


al Export Processing Zone & Industrial land
Positions
park planned
(ha)

1 Export Processing Zone Tan Thuan 300 Dist 7

2 Export Processing Zone Linh Trung 1 62 Dist Thu Đuc

3 Export Processing Zone Linh Trung 2 61.75 Dist Thu Đuc

4 Industrial Park Tan Tao 373.33 Dist Binh Tan

5 Industrial Park Vinh Loc 203 Dist Binh Tan

6 Industrial Park Binh Chieu 27.34 Dist Thu Đuc

7 Industrial Park Hiep Phuoc 311.40 District Nhà Bè

8 Industrial Park Tan Binh 129.96 Dist Tan Phu

9 Industrial Park Tân Thoi Hiep 28.41 Dist 12

10 Industrial Park Le Minh Xuan 100 District Binh


Chanh

11 Industrial Park Tay Bac – Cu Chi 208 District Cu Chi

12 Industrial Park Cat Lai 124 Dist 2

13 Industrial Park Tan Phu Trung 542.64 District Cu Chi

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6.5 Research result
7.Comparative analysis:
As many other developing countries, Viet Nam expects to attract more FDI to
get more foreign capital, market technology and management experiences in order to
stimulate the industrialization and modernization process.
In aspect of foreign investor, the benefit from their investments is the first to be
considered when a company wants to invest in a foreign country.
Thus, they pay attention to the advantages of the country so that they could
minimize their expenses and maximize the profits. Mostly those are cheap labours,
natural resources and advantageous policies in FDI.
8. Conclusion
9. Appendix
10. Bibliography
- Wikipedia: Foreign direct investment
- The law on Foreign Investment in Vietnam november 1996
- Law amending and supplementing some articles of the Law on Foreign
Investment in Vietnam, june 2000
- Government's Decree No. 24/2000/ND-CP detailing the implementation of
foreign investment law in Vietnam
- Vietpartners, be your firt- Vietnam Economy Highlights
- Hepza City HCM
- Foreign direct investment into China, the real situation and some lessons
learned
-Google Scholar:
. Attracting fdi experiences of Asean country
. Globalization, fdi and employment in Viet Nam (Rhys Jenkins)
. A framework for fdi promotion (Henry Loewendahl)
. Restructuring through fdi is Rumanian manufacturing (Gabor Hunya)

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INFORMATION ON RESEARCH

Surveying in topic the research of doctoral students


Invites you to participate in my research on “Foreign direct investment intoViet
Nam ”
The objective of the survey is to understand your priorities in attracting and of
capital use of foreign direct investment into EZ & IP in Ho Chi Minh City
This survey is part of the Doctor thesis of Mr. Le Xuan Lam at the Department
of Technology - Administration American International University (IAU), LosAngeles
USA ,under the direction of Prof. Ian M . Mackechnie.
You could contact Prof. Ian M. Mackechnie email: ianmac2004@yahoo.com.au
or telephone +6013 3897989 and research students via email: xuanlamct@gmail.com
or phone 84 913 715. 891
The questionnaire required 30 minutes to complete.
I would like to invite you to participate in this survey. The answer is voluntary
completely .You may withdraw at any stage. Only the research student and professor
are entitled to see and use the answers.
I do not ask you to sign the questionnaire and will have no way to connect the
answers with the respondents. This document will be destroyed after 5 years. If you
have any questions please contact me at the address above.I would like to thank so
much for agreeing to answer the survey.
Res
earch student
Le Xuan Lam

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Questionnaire Survey
(Questions for managers)

Question 1: Could you please let us know the main business of your company in
Ho Chi Minh city?
(Please mark X where applicable)

Business Operating

a. Machinery, automation 

b. Car production and assembly 

c. Production of marine transport


d. Machine for agriculture and processing industries 

e. Electrical equipments and industrial robots 

f. Manufacturing electronic equipment 

g. Manufacturing computer, Telecommunications 

h. Developing software 

i. Electricity supply 

k.Manufacturing pharmaceutical, herbal, medicine 

l.Manufacturing plastics, chemicals and technical rubber 

m. Biotechnology 

n. New materials 

o. Oil Exploration 

p. Highway construction 

q. Aviation 

r.Project environmental management and technology 

s. Human resource development 

Other (Please specify):


…………………………………………………………………………………………

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…………………………………………………………………………………………
…………………………………………………………………………………………

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Question 2: Could you please evaluate your satisfaction with the laws environment
and the policies to attract FDI in Ho Chi Minh city?
(Please mark X where applicable)

Unsatisfied Satisfied
Comments 1 2 3 4 5

a.The legal system and administrative rules


(administrative rules are loose, overlapped and     
conflict)

b. The investment preferential and support policy


(business income tax, import and export tax, value     
added tax, local subsidy…)

c.The equality in law implementation (biased


    
implementing, unfair competition)

d. The uniformity(locality, federal, states…)     

e. The legitimate environment     

f. Administrative procedures (prolix, slow progress…)     

g. Practicing laws (negative, harassment, bribery…)


    
(negative, harassment, bribery…)

Please indicate a factor that you consider the most satisfying? Why?
....................................................................................................................................................
....................................................................................................................................................

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Question 3: Please evaluate how these following factors effect the decisions on
investment locations in EZ- IP Ho Chi Minh city ?
(Please mark X where applicable)

High-
Factors Uneffected effected

1 2 3 4 5

a. Accidentally     

b. The existing of IP group     

c. Competitiv salary for workers.     

d. Available skilled workers     

e. Young human resource     

f. Diversified forms of investment     

g. Opportunities in selling products at domestic


    
market and exporting to foreign countries

h. Preferential policies of states and central


    
government

i. Reduce transaction costs     

k. Close to clients.     

l. Close to suppliers.     

m. Close to universities, colleges and research


    
institutes…

Other (Please in details)

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Question 4: Please evaluate the important role of infrastructure into the
investments decision in EZs and IPs
(Please mark X where applicable)

Less Very
important important
Factors
1 2 3 4 5

Technical infrastructure

a.Traffic:The roads, railways and airways systems.     

b. Water supply electricity system     

c. Telecommunications system and other services     

d. Banking system, auditing and consulting company     

e.The operation of local industries     

Social infrastructure

a. Eduction and training system     

b. Entertainments and other services     

c. Tradition, religions and cultures.     

Other (Please specify):


…………………………………………………………
…………………………………………………………

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Question 5: What are your obstacles when you decide invest in Ho Chi Minh
City?
(Please mark X where applicable)

Not at all Extremely


Problem
1 2 3 4 5

a. Finding partners and investment locations     

b. Arranging/manage finance for investment     

c.Land arrangement for investment projects     

d. Finding skilled and educated labor sources     

e. Employees retaining (quit rate)     

f. Short of electricity and power shutdown suddenly     

g. The effect of waste on nature and society     

h. Workers strike     

i. The conflict between management regulations and


    
laws system

k. Problems language     

l.The differences in working manners     

Other (Please specify):


…………………………………………………………………………………………………….
…………………………………………………………………………………………………….

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Question 6: Please select one or maximum two of the following issues that you consider
are the weakest points in attracting FDI in Ho Chi Minh City?
(Please mark X where applicable)

Issues Your select

a. Legal and policy framework 

b. The schemes (or projects) for attracting FDI. 

c.The list of invested projects. 

d. The support and preferential investment policies 

e. Infrastructure "outside fences" of EZs - IPs 

f.The shorted of educated worker. 

g. The clearance of land and land allocation for the project. 

h.The treatment process of waste in industrial parks and export



processing zones.

i. The abroad promotional activities. 

k. Communication document and guideline. 

l. Online information updating. 

Question 7: Futures
Please let us know your company's future plans?
(Please mark X where applicable)

Plan Yes No

a.Do you still have the plan for investing into Ho Chi Minh
 
city in the next 2-3 years

b. If yes, which activities you will plan to invest? (Please …………………….


specify if possible) …………………….

c. The amount of capital estimated for next 2-3 years for ………………………
investment (please details) ………………….

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In case you want to know the results of this survey, please to contact with me.
- Email: xuanlamct@gmail.com
- Phone: 84.913.715.891
- Or please give us your contact information
- Email: ……………
- Phone:……………..
- Fax:……………..
Thank you for your time for questionnaire

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WORK SCHEDULE

Index Tasks Deadline Note

1 Section I: FDI general researching 6/2011

2 Section II: Actual situation of FDI 6/2011


attracting in VietNam

3 Section III: FDI attracting experiences in 7/2011


other countries

4 Section VI: Solutions for FDI attracting 7/2011

5 Section V: Survey 8-9-10/2011

6 Section VI: Collect results 11-12/2011

7 Section VII: Summarize the thesis 1/2012

8 Section VIII: Conclude the thesis 2/2012

9 Finish and submit the thesis 5/2012

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