National Economics University School of Advanced Education Programs International Economics

NATIONAL ECONOMICS UNIVERSITY
SCHOOL OF ADVANCED EDUCATION PROGRAMS

INTERNATIONAL ECONOMICS
INDIVIDUAL ASSIGNMENT OF INTERNATIONAL

ECONOMICS
TOPIC: FDI OUTFLOW OF BRAZIL IN THE PERIOD OF 2015-

2021 & SUGGESTIONS TO VIETNAM
Name : NGUYỄN HÀ MY
Student ID : 11206183
Major : International Economics
Class : International Business Administration 62C
Instructor : Associate Professor Ph.D Nguyễn Thường Lạng
Email : langnt@neu.edu.vn, langnguyen3300@gmail.com
Mobile : 0983478486
Study time : Semester 1 of the academic year 2022-2023
Student Mobile : 0982963692
Student Email : nguyenhamy6702@gmail.com
HANOI, 8/2022
Bài tập học phần Kinh tế quốc tế GVHD: PGS. TS. Nguyễn Thường Lạng
GUARANTEE
I hereby declare that I have completed this assignment entirely on my own. To the
best of my knowledge, the statements and materials used in the exercise are 100
percent accurate, have been cited, and are guaranteed to be precise to the highest
degree. If the assignment is not performed as specified above, I will accept full
responsibility.
Hanoi, August 28, 2022

Prepare by
Nguyễn Hà My
THANK YOU
First and foremost, I would like to express my sincere gratitude to all of the
instructors at the National Economics University and, in particular, to the lecturers
at the Institute of International Trade and Economics, who have diligently taught
and connected with us. valuable expertise and information.
I want to express my gratitude to Associate Professor Dr. Nguyen Thuong Lang in

particular since she helped me out in the exercise. Working with you has allowed
me to continue learning and gain a wealth of knowledge that will be very helpful to
me in the future. I have also developed a serious and productive work ethic, both of
which will be essential for my career path.
Hanoi, August 28, 2022

Prepare by
Nguyễn Hà My
Student: Nguyễn Hà My Class: International Business

Administration
TABLE OF CONTENTS
OPENING................................................................ Error! Bookmark not defined.
CHAPTER 1: OVERVIEW OF DIRECT ........... Error! Bookmark not defined.
1.1 POSITIONS AND TRANSACTIONS ........ Error! Bookmark not defined.
1.1.1. The total FDI position ............................... Error! Bookmark not defined.
1.1.2. FDI net applications ......................................................................................
1.1.3. Capital participations flows....................... Error! Bookmark not defined.
1.2 DECOMPOSITION OF EDI POSITION VARIATIONS ...........................
1.2.1. The variation in the FDI position ....................................................................
1.3 INVESTING REGIONS AND INVESTED ...................................................
1.4 SECTOR OF ECONOMICS ACTIVITY ......................................................
1.4.1. Positions ..........................................................................................................
1.4.2. Transactions ....................................................................................................
1.4.3. Profitability .....................................................................................................
CHAPTER 2: TRADE RELATIONSHIP BETWEEN BRAZIL AND
ARGENTINA .......................................................................................................... 12
2.1 TRADE BETWEEN BRAZIL AND SOUTH AMERICA (2000 – 2021) 12
2.1.1 Brazil's intra-regional trade with South American countries ............ Error!
Bookmark not defined.
2.1.2 Growth continued to return ....................... Error! Bookmark not defined.
2.1.3 Argentina continues to be one of Brazil's main trading partners ....... Error!
2.2 TRADE BETWEEN BRAZIL AND ARGENTINA (2000 – 2020) ... Error!
2.2.1 Existing trade between Brazil and Argentina .......... Error! Bookmark not
defined.
2.2.2 Trade between Brazil and Argentina has remained concentrated in five
chapters .............................................................. Error! Bookmark not defined.
2.3 IMPACTS OF TEC REDUCTION ............ Error! Bookmark not defined.
2.4 MACROECONOMICS IMPACTS ............ Error! Bookmark not defined.
2.3.1 Statistics on FDI ....................................... Error! Bookmark not defined.
2.3.2 Why should we invest abroad? ................. Error! Bookmark not defined.
2.3.3 Most of Brazil's two investments in Argentina ....... Error! Bookmark not
defined.
CHAPTER 3: BNDES ............................................................................................ 18
3.1 OPENING ...................................................................................................... 18

Administration
3.1.1 Definition .................................................. Error! Bookmark not defined.

3.1.2 About BNDES .......................................... Error! Bookmark not defined.
CHAPTER 4: SUGGESTION TO VIETNAM.................................................... 18

4.1 SIMILARITIES AND DIFFERENCES...................................................... 18
4.2 COMMENT ................................................................................................... 18
CONCLUSION ....................................................... Error! Bookmark not defined.

LIST OF REFERENCES....................................... Error! Bookmark not defined.
APPENDIX 01.............................................................................................................
APPENDIX 02.............................................................................................................
APPENDIX 03: ...........................................................................................................

Administration

Administration
Chuyên đề thực tập GVHD: PGS. TS. Nguyễn Thường Lạng
INTRODUCTION
1. Inevitability of topic selection
The Foreign Direct Investment in Brazil Report presents statistical analyses of the direct
investment liabilities position in Brazil from 2010 to 2016. Direct investment is the most
important external investment category for the Brazilian economy. At the end of 2016, the
direct investment liabilities position was approximately equivalent to half of the country’s total
external liabilities. Direct investment liabilities registered net inflows over the entire series and
have been systematically less volatile than portfolio and other investment categories (loans and
trade credits, among others). According to international methodological standards, a direct
investment relationship occurs when an investor from one economy holds voting power of 10
percent or more in an enterprise of another economy.1 Under these conditions, the direct
investor effectively participates on the decisions and the strategy of the business, maintaining a
stable and long-term interest in the direct investment enterprise (enterprise that receives direct
investment). Direct investment has two components: equity and debt instruments. The equity
component refers to nonresidents’2 ownership of shares of enterprises resident in Brazil; the
debt instruments component comprises credit granted to enterprises resident in Brazil by
nonresident enterprises belonging to the same economic group. The major data source for the
compilation of direct investment liabilities statistics presented in this report is the Census on
Foreign Capital in Brazil (Census). As of 2010, the Quinquennial Census, performed for the
years ending in zero or five, is censitary, and encompasses all enterprises resident in Brazil that
have a nonresident investor owning part of its equity. For the remaining years, an Annual
Census collects data from a subset of these respondents, comprised of large corporations only.
Estimates for smaller enterprises that do not participate in the Annual Census are made for the
positions, for which there are complementary databases. The estimation process is described in
the methodological annexes. For this reason, some direct investment liabilities statistics are
presented only for 2010 and 2015.
SV: Nguyễn Thị Lành 1 Lớp: Kinh tế quốc tế 57B

CHAPTER 1: OVERVIEW OF DIRECT
- In 2019, the total FDI position increased by 8.9% compared to the previous year. Net flows
increased to US$22.8 billion.
1.1 POSITIONS AND TRANSACTIONS

1.1.1. The total FDI position
The total FDI position totaled US$416.6 billion in 2019, of which US$385.0 billion in
equity participation and US$31.5 billion in intercompany operations. The 2019 total position
increased by US$34.0 billion compared to 2018. Like the PDI, the FDI position in 2019 is the
highest value observed in the series, as illustrated in Figure 9
1.1.2. FDI net applications

FDI net applications totaled US$22.8 billion in 2019, a significant increase from the US$2.0
billion observed in the previous year. Figure 10 shows the recent evolution of FDI transactions
accumulated in twelve months.
SV: Nguyễn Thị 2 Lớp: Kinh tế quốc tế B

- In 2019, capital participation flows, excluding reinvested earnings, totaled US$9.7 billion and
once again contributed to increase total FDI, after generating net divestments of US$5.0 billion
in 2018. Reinvested earnings exceeded US$2 .7 billion in 2018 to US$11.1 billion in 2019. Net
grants from intercompany operations contributed US$2.0 billion to 2019 FDI. Figure 11
demonstrates the composition of FDI flows.
2. Decomposition of EDI position variations

- As with the FDI position, the variation in the FDI position is explained by transactions,
parities and prices, and other variations. Figure 12 shows the decomposition of changes in FDI
positions – Equity participation between 2017 and 2019. From 2017 to 2018, the FDI position
decreased from US$358.4 billion to US$345.7 billion, or 3.5%, and all components contributed

to the setback. From 2018 to 2019, the FDI – Equity Equity position increased to US$385.0
billion, or 11.4%. While transactions recorded in the balance of payments reached US$20.8
billion, other changes in volume added up to US$18.9 billion.
2.1.1, Investing Regions and invested

Europe is the main investing region in the country; Caribbean and Europe are the main
regions invested.
- According to the immediate investor criterion, Europe remains the region with the largest
stock of PDI in Brazil in 2019, with 67.8% of the total of US$874.0 billion, as shown in Figure
20. There was a small increase compared to 66.1 % of the total of US$737.9 billion registered
in the previous year. North America is the region with the second largest stock of PDI, with
17.6% of the total.

- As shown in Figure 21, the Netherlands stands out as the main immediate European investors,
with 42.4%, followed by Luxembourg, 13.3%, and Spain, with 13.2% of the European total
(US$593.3 billion). . France, Switzerland and the United Kingdom are, in sequence, the other
main European investor countries.

The IDP position of North American immediate investors totaled US$153.7 billion, of which
80.9% comes from the United States, as shown in Figure 22.

Some countries hold significantly larger positions when compiled by the criterion of immediate
investor country, compared to the concept of final controller.
This is the case of the Netherlands and Luxembourg, host countries of intermediary companies,
which act in the channeling of direct investment from final controlling countries to the
destination countries.
Other countries exhibit higher IDP - Equity positions according to the final controlling country
criterion, such as the United States, Spain, Belgium, France and China. These countries are
home to companies that channel the IDP through intermediary countries.
Comparing the IDP positions in the immediate investor and ultimate controller criteria, the
Netherlands presents the biggest difference: the position by the immediate investor criterion is
US$149.8 billion and US$25.3 billion by the ultimate controller criterion, as shown Figure 23.
Belgium presents the biggest difference in the opposite direction: position of US$5.5 billion
according to the immediate investor criterion and US$41.0 billion according to the final
controller criterion

The FDI position reached US$416.6 billion in 2019. The highest positions according to the
criterion of immediate investment country are in the Caribbean and European regions, which
account for 47.0% and 37.7% of the total, respectively, as Figure 24 shows. In the Caribbean,
FDI positions stand out in the Cayman Islands, 44.2%, and the British Virgin Islands, 29.8%. In
Europe, the Netherlands, 55.9%, and Luxembourg, 16.0% stand out.
4, Sector of economics activity

4.1 Positions
One-fifth of IDP's position is in financial services and ancillary activities. One third of the FDI
position is invested in companies for the acquisition of financial assets.
In 2019, resident companies operating in financial services and ancillary activities, including
investment funds, accounted for 19.8% (US$116.5 billion) of the IDP – Equity Equity position,
followed by companies belonging to the commerce sector. (9.8%) and electricity and beverages
(7.9% each), as shown in Figure 28.

Almost a third (31.6%) of the FDI – Equity Equity position is invested in companies
incorporated to acquire financial assets, as shown in Figure 29. Then come companies that
operate in financial and auxiliary services activities, with 18.9%.
4.2 Transactions - Equity participation and operations intercompany
In 2019, the highlights were the gross inflows in IDP – Equity participation, excluding
reinvested profits, from the oil and natural gas extraction sector, responsible for 20.2% of the
total, as shown in Figure 30.

As for IDP transactions – Intercompany operations in 2019, the coke, oil derivatives and
biofuels, and agriculture and mineral extraction sectors stood out in both inflows and
amortizations. The vehicle sector showed significant inflows, while the financial services sector
was an important contributor to gross amortizations. Figure 31 depicts the transactions of
intercompany operations by sector of economic activity.
Gross investments of FDI – Equity participation, excluding reinvested earnings, totaled

US$14.2 billion in 2019. Companies in the financial services sector were the main destination
of these flows, as shown in Figure 32.

4.3 Profitability
The profitability of IDP – Equity Equity positions was quite different among the sectors of the
economy in Brazil in 2018, as shown in Figure 33.
The graph also shows significant differences in the behavior of profit between sectors. In the
period from 2010 to 2019, the beverage and financial services sectors showed positive results;
trade, oil and gas extraction, metallurgy and telecommunications alternated profit and loss; and

the vehicle sector went from profits, between 2010 and 2014, to losses as of 2015.
CHAPTER 2 TRADE RELATIONSHIP BETWEEN BRAZIL AND ARGENTINA

2.1 Trade between Brazil and South America (2000-2020)
- Over the last few decades, Brazil's intra-regional trade with South American countries has -
on the whole - shown a surplus.
Favorable for the Brazilian economy during the entire period analyzed (2003-2020). Brazil's
cumulative trade balance with South
The United States, over the past two decades, has totaled $148.68 billion, in nominal terms.
The peak of Brazil's exports to South America
occurred in 2011, the year that Brazil had a positive balance of 45.16 billion USD in exchange
with the region. As of 2012, exchange flow

Continuous trade with South American countries tends to decrease. In 2020, South America's
participation in Brazil's total exports
is 10.8% (22.7 billion USD); Compared to total imports, it only reached 11.4% (equivalent to
18.2 billion USD).
- Growth continued to return in the periods 2014-2016
and 2018-2020. A slight rebound is observed from 2017 to 2018, no less than relations with
China or the rest of the world
rest of the world.
- Argentina continues to be one of Brazil's main trading partners, as it reduces its share
from 12% in 2000 to 4.5% in 2020.
2, Trade between Brazil and Argentina (2000-2020)
- Between 2010 and 2020, existing trade between Brazil and Argentina has fallen sharply. In
2020, the current trade will receive 16.4 billion US dollars. According to the analysis, Brazil's
cumulative trade surplus with the neighboring country over two decades reached $47.9 billion
USD
- The same movement of emphasis signs still occurs with imports. Brazil's imports originating
from Argentina will decline from 12% to 5% between 2000 and 2020. During the same period,
purchases of Argentine products from Brazil will decrease from 25.6% to 20.4% .

- In the last twenty years, according to the classification of the Harmonized System (SH2).
When comparing the years 2000 and 2020, some important changes can be seen in the
composition of Brazilian exports to Argentina, even though the sets of goods have remained
around 55% of the total sold by Brazil over the period. In general terms, the greater expansion
of SH2 87 (vehicles and parts) and the retraction of SH2 84 (nuclear reactors, boilers,
machinery, apparatus and mechanical instruments) and SH2 85 (machinery and electrical
appliances), both both in nominal values and in relative terms. The shares of SH2 39 (plastics)
and SH2 48 (paper and cardboard) also increased.

- The automobile industry occupies a significant weight in Argentina and Brazil's exports to
each other.
3, Impacts of the TEC reduction
- Recently, the Brazilian government defended a linear reduction of 20% in the tariffs applied
by the bloc, with 10% at the end of 2021 and the other 10% in 2022.
3.1, Macroeconomic impacts
- Table 5 shows the results of the three CET reduction scenarios on the main macroeconomic
variables in Brazil and Argentina. The results are positive for both countries, with an increase
in GDP, investments, exports and imports, as well as a reduction in the general level of prices.
The results would be negative only in the countries' trade balance and terms of trade. In the
basic scenario, with a 20% reduction in the CET, the Brazilian GDP would grow 0.16%, more
than the Argentine GDP growth (0.09%). Also in investments, exports and imports, Brazil's
gains are greater than those of Argentina. In terms of trade balance, the reduction would be
much greater in Brazil, in absolute terms: US$ 3.9 billion against US$ 436 million in
Argentina.

- Statistics on FDI are notoriously lacking, especially when compared to statistics on foreign
trade, based on customs records.
- The measurement of two FDI stocks, accumulated over time, affected by changes in exchange
rates, as well as the appreciation or devaluation of the two assets in terms of national
currencies. This is especially problematic in countries like Brazil and Argentina, which are
subject to a lot of macroeconomic volatility.
- Published statistics also frequently lack standardization, or make longitudinal analysis and
comparison difficult with other countries, as well as cross-references with other databases. .
Why should we invest abroad? Among the reasons suggested by the documentation are:
i) to sell more
ii) better buy
iii) progress
iv) escape unfavorable conditions in their country of origin
- To:
+ search for new markets; access to supplies, such as raw materials and labor, at lower costs.
+ and access assets that can extend their competitive advantage, such as distribution networks,
universities and research centres.
+ Brazil and Argentina MNCs will tend to appear in sectors and industries where these
countries have a comparative advantage - natural or created - and Investment will tend to be
concentrated
- Brazilian investor participation in FDI into Argentina reached 5.7% in 2019, putting Brazil in
fourth place among the largest FDI suppliers to the country, after the United States, Spain and
the Netherlands.
- Argentina's share of Brazil's foreign investment has fallen from 2.9% in 2010 to 1.2% in
2019. In terms of Brazil's total foreign direct investment, it has increased 118%. , exceeding $

191.4 billion to $ 416.6 billion, investment in Argentina decreased by 12.4%, down from $ 5.5
billion to $ 4.8 billion.
→ because of the effect of the devaluation of the peso - in which case it has not been fully
balanced by the inflation of the two assets. And many Brazilian companies divest in the country
- According to data from the BCB, or concentrated industrial sector, in 2019, most of Brazil's
two investments in Argentina - about two-thirds of the amount involved non-equity
participation in companies. Other segments with notable involvement are commercial or
financial.
- According to chart 7, not in the industrial sector, the highlight is the auto industry (including

cars), which has a 27% share in Brazil. investment, or food, beverage and smoke segment, with
13%; and the chemical and plastic industry, with 10%.
CHAPTER 3: BNDES
3, BNDES
- The Brazilian Development Bank (BNDES) is the main financing agent for development in
Brazil
- BNDES has become the largest structuring of infrastructure concession projects among its
peers, according to a ranking by data provider Infralogic
- New funding approvals by the National Bank for Economic and Social Development
(BNDES) increased 27% from January to December 2018 compared to the same period in 2017

and totaled 94.9 billion BRL. During the period, disbursements were R$69.3 billion (-2%) and
consultations (first stage of funding request at the Bank) remained stable at most.
The standout area among the approvals in 2018 was infrastructure, with performance that was
60% higher than in 2017 and totaled 47.6 billionrl, hh. Next is the Agriculture and Industry
Sector, with an increase of l -10% and 5% respectively in 2017, and the Trade and Services
sector e.
Disbursement - Of the total BRL 69.3 billion issued by BNDES from January to December
2018, BRL 30.4 billion (43.9% of total disbursement) was earmarked for infrastructure
investment, an increase 13% compared to 2017. Next is the agricultural sector, with R$ 14.7
billion (21.2% of total disbursed capital) and 2% growth compared to disbursed capital) and 2%
growth. compared.
Disbursements to the industrial and commercial and services segments were respectively R$
12.3 billion (17.8% of the total) totaling 11.2% and 11.9 ng both cases, a decrease of 18 %
Compared with the last year.
Region - In 2018, the Midwest recorded the highest percentage growth in BNDES
disbursements. For the region, 9.4 billion r$ was issued, 12% higher than 2017. This figure
corresponds to 13.5% of total issuance a bndes and
On the other hand, approvals for new operations increased by 70% to R$12 billion, mainly
influenced by the approval of funding for the transmission system that will connect the Xingu
Switching Station (PA) to the Substation. Rio Terminal Conversion (RJ) for the energy
generated by the Belo Monte Hydroelectric Plant.
As for other regions of the country, the bank's disbursements were distributed as follows: the
Southeast region received R$ 26.5 billion (R$38.2 in the South, R$17.96 billion R$ (25.9%) );
Northeast region, R$ 11.9 billion (17.2%); and North, R$ 3.5 billion (5.1%). The Southeast
remains stable, fluctuating by 1% and -1% respectively, and for the North and Northeast, the
difference is -8% and -16%.
Approvals for the North, South and Southeast regions, respectively, have the following
increases compared to the previous year: 27%, 29% and 17% respectively. For the Northeast
region, after growing 70% in 2017 compared to 2016, approval levels ranged -9%.
MSMES - SUPER SMALL, SMALL AND SMALL ENTERPRISE (MSMES) RECEIVED

R$30.1 Billion, Equivalent to 44.7% of the Highest 201 T. finm Disbursement Amount
recorded in the Bank's history and the corresponding amount increased by 4% compared to
2017.
Capital Markets - In 2018, through BNDESPAR, BNDES invested BRL 412 million in a credit
fund, with a multiplier of 3 - that is: for every one million BNDES, 3 million BRL was invested
by other investors.

The role of the Bank as an investor in this type of fund, along with private investors and
development financial institutions, is to stimulate segmentation and increase the accessibility of
fundamental projects. infrastructure and SMEs for other forms of financing through capital
markets.
CHAPTER 4: SUGGESTION TO VIETNAM

FDI outflow of Vietnam and Brazil
Vietnam Brazil
Common are countries with developing economies
point
Different - GDP growth: 2,91% ( in 2020) - GDP growth: 1,3% (2018)

point - GDP per capita: $10,755 (PPP, October 1,1% (2019) − 4.1% (2020)[5]
2020 forecast). $3,500 (nominal, estimated 5.0% (forecast 2021)
October 2020 forecast, adjusted for numbers) - GDP per capita: $7,741
- GDP by sector: (nominal, 2021 estimate)
Agriculture: 14.85% $16,169 (PPP, estimated 2021)
Industry: 33.72% - GDP by sector:
Service: 41.63% Service: 76%
(estimate 2020) Industry: 18.5%
- Inflation (CPI): 2.8% (2016 estimate) Agriculture: 5.5%
(2016 estimate)
- Inflation (CPI): 3.6%
(estimated 2020)
Decrease in a positive direction
3.75% (2018)
→ In general, Vietnam's economy has some similarities with Brazil, but because it is located in
another continent, the economic characteristics are also clearly distinguished. The economy in
Brazil is more appreciated which leads them to have enough capital to be able to make foreign
investment (FDI). Although not having high statistics like Brazil, Vietnam still has a large
source of FDI outflow. However, Vietnam needs to step up economic and political factors to be
able to keep up with Brazil and become a large foreign direct investment country in the world.

CONCLUTION
Better-than-expected data for the final quarter of 2021 has contributed to the positive revisions
to the market's growth forecast in recent weeks. However, the economic activity indicators for
January were unexpectedly negative, in part due to the intense wave of covid-19 pollution that
occurred during the month. Although this wave had a much higher peak in new cases than the
previous wave, the human and economic consequences as well as the duration were much
shorter. After this negative shock, the improvement of the pandemic situation will significantly
contribute to the recovery of activities, such as services provided to families and others, with
positive effects. possible for the labor market, which has already recovered indexes from pre-
pandemic levels. The negative surprise was the outbreak of war in Ukraine, which ultimately
underpinned the deterioration of inflation forecasts and, therefore, of the monetary policy
scenario in Brazil and abroad. However, Brazil's one-year forward real interest rate is little
changed since the previous forecast was published in December 2021. These and other matters
are detailed in this note. , we maintain our GDP growth forecast of 1.00.1% in 2022 , albeit
with changes in the composition of this growth. The main cause, from the manufacturing
sector's point of view, is the expected slowdown in agricultural sector growth, from 2.8% to
1%, due to a deterioration in estimates for soybean production, down 8.8 %, even with a 3.7%
increase in planted area - which means that the total value of production decreases with an
increase in intermediate consumption. hence, the monetary policy scenario in Brazil and
abroad. However, Brazil's one-year forward real interest rate is little changed since the previous
forecast was published in December 2021. These and other matters are detailed in this note. ,
we maintain our GDP growth forecast of 1.00.1% in 2022 , albeit with changes in the
composition of this growth. The main cause, from the manufacturing point of view, is the
reduction in the expected growth of the agricultural sector, from 2.8% to 1%, due to a
deterioration in the estimate of soybean production, which fell by 8.8 %, even with a 3.7%
increase in intermediate consumption. hence, the monetary policy scenario in Brazil and
abroad. However, Brazil's one-year forward real interest rate is little changed since the previous
forecast was published in December 2021. These and other matters are detailed in this note. ,
we maintain our GDP growth forecast of 1.00.1% in 2022 , albeit with changes in the
composition of this growth. The main cause, from the manufacturing point of view, is the
reduction in the expected growth of the agricultural sector, from 2.8% to 1%, due to a
deterioration in the estimate of soybean production, which fell by 8.8 %, even with a 3.7%

increase in intermediate consumption. Brazil's one-year forward real interest rate has changed
little since the publication of its previous forecast in December 2021. Based on these and other
issues detailed in this note , we maintain our GDP growth forecast of 1.1% in 2022, despite a
change in the composition of this growth. The main cause, from the manufacturing point of
view, is the reduction in the expected growth of the agricultural sector, from 2.8% to 1%, due to
a deterioration in the estimate of soybean production, which fell by 8.8 %, even with a 3.7%
increase in intermediate consumption. Brazil's one-year forward real interest rate has changed
little since the publication of its previous forecast in December 2021. Based on these and other
issues detailed in this note , we maintain our GDP growth forecast of 1.1% in 2022, despite a
change in the composition of this growth. The main cause, from the manufacturing point of
view, is the reduction in the expected growth of the agricultural sector, from 2.8% to 1%, due to
a deterioration in the estimate of soybean production, which fell by 8.8 %, even with a 3.7%
increase in intermediate consumption. 1% in 2022, albeit with changes in the composition of
this growth. The main cause, from the manufacturing point of view, is the reduction in the
expected growth of the agricultural sector, from 2.8% to 1%, due to a deterioration in the
estimate of soybean production, which fell by 8.8 %, even with a 3.7% increase in planted area
- which means that the total value of production decreases with an increase in intermediate
consumption. 1% in 2022, albeit with changes in the composition of this growth. The main
cause, from the manufacturing point of view, is the reduction in the expected growth of the
agricultural sector, from 2.8% to 1%, due to a deterioration in the estimate of soybean
production, which fell by 8.8 %, even with a 3.7% increase in planted area - that is the total
value of production decreases with an increase in intermediate consumption.

LIST OF REFERENCES
1. Foreign direct investment, net outflows (% of GDP) – Brazil
2. 2021 Investment Climate Statements: Brazil – US department of state
3. Institutional Distance and Brazilian Outward Foreign Direct Investment - Bruno Thiago
Tomio, Mohamed Amal
4. Foreign Direct Investment Towards the Region Fell 9.1% in 2015 to Total $179.10 billion
dollars
5. Brazil capital outflows, weak real not a threat to credit outlook - Moody's
6. Brazil , Strategy for agricultural statistics for 2020 and beyond
7. https://ec.europa.eu/eurostat/documents/749240/749310/Strategy+on+agricultural+statistics
_Final/fed9adb7-00b6-45c5-bf2c-2d7dcf5a6dd9>.
8. Brazil, Agriculture, forestry and fishery statistics 2017
9. https://ec.europa.eu/eurostat/documents/3217494/8538823/KS-FK-17-001-EN-
N.pdf/c7957b31-be5c-4260-8f61-988b9c7f2316>.
10. Brazil, Total Agricultural output in the EU up by 6.2% in 2017 compared with 2016
11. https://ec.europa.eu/eurostat/documents/2995521/9380923/5-16112018-BP-
EN.pdf/86dc9faa-616d-43d0-9933-e2f5d0af6d42>.
12. World Trade Organisation (2019), Trade Policy Review Brazil Secretariat.
13. World Trade Organisation (2019), Trade Policy Review Argentina, Report by the
Secretariat.
14. World Trade Organisation (2019), Trade Policy Review South America, Report by the
Secretariat.
15. FDI report 2016.pdf
16. Foreign direct investment in Brazil in 2018, by country of origin(in billion U.S. dollars) –
Statista
17. Foreign Investment Into Brazil Hits 25-Year Low – Bloomberg
18. What is the difference between Foreign Direct Investment (FDI) net inflows and net
outflows?


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NATIONAL ECONOMICS UNIVERSITY

SCHOOL OF ADVANCED EDUCATION PROGRAMS

INDIVIDUAL ASSIGNMENT OF INTERNATIONAL

TOPIC: FDI OUTFLOW OF BRAZIL IN THE PERIOD OF 2015-

Hanoi, August 28, 2022

I want to express my gratitude to Associate Professor Dr. Nguyen Thuong Lang in

Hanoi, August 28, 2022

Student: Nguyễn Hà My Class: International Business

Student: Nguyễn Hà My Class: International Business

3.1.1 Definition .................................................. Error! Bookmark not defined.

CHAPTER 4: SUGGESTION TO VIETNAM.................................................... 18

CONCLUSION ....................................................... Error! Bookmark not defined.

Student: Nguyễn Hà My Class: International Business

Student: Nguyễn Hà My Class: International Business

SV: Nguyễn Thị Lành 1 Lớp: Kinh tế quốc tế 57B

CHAPTER 1: OVERVIEW OF DIRECT

1.1 POSITIONS AND TRANSACTIONS

1.1.2. FDI net applications

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2. Decomposition of EDI position variations

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2.1.1, Investing Regions and invested

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4, Sector of economics activity

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Gross investments of FDI – Equity participation, excluding reinvested earnings, totaled

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CHAPTER 2 TRADE RELATIONSHIP BETWEEN BRAZIL AND ARGENTINA

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MSMES - SUPER SMALL, SMALL AND SMALL ENTERPRISE (MSMES) RECEIVED

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CHAPTER 4: SUGGESTION TO VIETNAM

Different - GDP growth: 2,91% ( in 2020) - GDP growth: 1,3% (2018)

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1. Foreign direct investment, net outflows (% of GDP) – Brazil

2. 2021 Investment Climate Statements: Brazil – US department of state

6. Brazil , Strategy for agricultural statistics for 2020 and beyond

8. Brazil, Agriculture, forestry and fishery statistics 2017

15. FDI report 2016.pdf

17. Foreign Investment Into Brazil Hits 25-Year Low – Bloomberg

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