| Author | Cu Thi Cam Ly |
| Call Number | AIT RSPR no.SM-26-02 |
| Subject(s) | Investments, Foreign--Vietnam--1988-2024
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| Note | A research study submitted in partial fulfillment of the requirements for the Degree of Master of Science in International Finance |
| Publisher | Asian Institute of Technology |
| Abstract | This thesis examines the determinants of Foreign Direct Investment (FDI) in Vietnam over the period 1988–2024. By applying time-series regression models, the study evaluates the role of four major groups of factors: corporate tax rates, labor market conditions, institutional quality, and macroeconomic indicators. It contributes to the existing literature by providing a comprehensive analytical framework that allows for a direct comparison of the relative impacts of these groups of factors within a unified model. The results indicate that policy-related factors exert a significant influence on FDI, with the corporate income tax rate showing a strong and consistent negative relationship with net FDI inflows. Labor market conditions reveal a multi-dimensional impact: low unemployment rates and higher levels of urbanization contribute positively, while labor costs exhibit a more nuanced relationship between the short and long term. Within the institutional group, economic freedom emerges as the most influential factor, whereas corruption indices do not display clear statistical significance. Among macroeconomic variables, only trade openness demonstrates a positive and statistically significant effect. The hierarchical regression analysis further confirms that among the four groups, corporate tax rate exerts the strongest influence on FDI, thereby rejecting the hypothesis that institutional quality is the foremost determinant. These findings provide important empirical evidence for policymakers, underscoring the central role of maintaining competitive corporate tax rates, improving labor market conditions, and strengthening international economic integration in order to attract and sustain high-quality FDI. |
| Year | 2026 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Science in International Finance (M/Msc IF) |
| Chairperson(s) | French, Joseph J. |
| Examination Committee(s) | Endress, Tobias;Khan, Syed Shurid |
| Scholarship Donor(s) | AITCV Scholarship |
| Degree | Research Studies Project Report (M. Sc.) - Asian Institute of Technology, 2026 |
