ASSIGNMENT COVER SHEET

STUDENT DETAILS

Student name: Tran Hoang Anh Duong Student ID number: 31211024702

UNIT AND TUTORIAL DETAILS

Unit name: IB09 Unit number:

Tutorial/Lecture: Class day and time:
Lecturer or Tutor name: NHI LINH TRAN (MS.LYNN)

ASSIGNMENT DETAILS

Title: Extra point

Length: Due date: 18/8/2023 Date submitted: 18/8/2023

DECLARATION

I hold a copy of this assignment if the original is lost or damaged.

I hereby certify that no part of this assignment or product has been copied from any other student’s work or
from any other source except where due acknowledgement is made in the assignment.
I hereby certify that no part of this assignment or product has been submitted by me in another
(previous or current) assessment, except where appropriately referenced, and with prior permission
from the Lecturer / Tutor / Unit Coordinator for this unit.
No part of the assignment/product has been written/ produced for me by any other person except
where collaboration has been authorised by the Lecturer / Tutor /Unit Coordinator concerned.
I am aware that this work may be reproduced and submitted to plagiarism detection software programs for
the purpose of detecting possible plagiarism (which may retain a copy on its database for future
plagiarism checking).

Student’s signature: Duong

Note: An examiner or lecturer / tutor has the right to not mark this assignment if the above declaration has not
been signed.
Article: Industrial real estate developers thrive
thanks to FDI
Link: https://vietnamnet.vn/en/industrial-real-estate-developers-thrive-thanks-to-fdi-2156504.html

1. Briefly describe your article and what it says about FDI. Make sure to include
information about any trends that you find in your article. Is FDI on the rise or
decline? Is it shifting from one country to another?

The article titled "Industrial Real Estate Developers Thrive Thanks to FDI" discusses the
success of the Kinh Bac Urban Development Corporation (KBC) in the context of foreign
direct investment (FDI) in Vietnam. The article notes that KBC benefits from its application of
production costs from a decade ago and its strategic infrastructure development, giving it a
competitive edge in offering reasonable leasing fees. Many investors, including large
international companies like Apple, are interested in leasing land from KBC for their
production facilities, indicating a positive trend in FDI attraction.

The piece acknowledges a steady influx of FDI into Vietnam, attributed to the government's
favorable policies for foreign investment. However, it also points out a potential challenge in
the form of the Global Corporate Minimum Tax, set to be implemented in 2024. Despite this,
industrial real estate firms like KBC have responded by engaging in social housing projects
for factory workers, strengthening ties with foreign corporations.

Regarding the overall trend of FDI in Vietnam, the article doesn't explicitly mention whether
FDI is on the rise or decline. However, it highlights the continuous inflow of FDI into the
country, underscoring Vietnam's attractiveness to foreign investors due to its supportive
policies. As for whether FDI is shifting from one country to another, the article doesn't
provide information on specific shifts in FDI from other countries to Vietnam. It primarily
focuses on KBC's success, its engagement with foreign investors (including Apple), and its
efforts to meet the demands of foreign corporations.

2. Why is FDI such a good option for businesses that want to go global? What does your
article or research say that supports your position?
- Access to Resources and Infrastructure: The article mentions that KBC benefits from using
infrastructure built a decade ago and applies production costs from the past, which gives
them a competitive advantage in offering reasonable leasing fees. This underscores how
 FDI can provide businesses with access to existing resources and infrastructure in foreign
markets, enabling them to operate efficiently.
- Market Demand and Customer Base Expansion: The fact that KBC receives offers from big
international companies like Apple indicates that FDI can open doors to a broader customer
base and larger market opportunities. This demonstrates how FDI can help businesses
expand their reach beyond their home markets.
- Cost and Pricing Advantages: The article highlights KBC's ability to offer reasonable leasing
fees due to its cost advantage. FDI can allow businesses to benefit from lower production
costs in certain regions, which can translate to competitive pricing and enhanced market
positioning.
3. What do you think the future is for FDI?

I think the future of FDI is expected to be transformative, with a reshaping of global value
chains and a significant impact on the global trade and investment landscape by 2030. FDI
plays a crucial role in driving sustainable economic growth and prosperity for nations. FDI
may increasingly flow into countries and regions that excel in technology, innovation, and
research and development. Investments in high-tech industries such as artificial intelligence,
biotechnology, and renewable energy could become more prominent.