The influence of foreign direct investment on Vietnamese provincial competitiveness

Abstract

This paper investigates the influence of Foreign Direct Investment on the Vietnamese Provincial Competitiveness over the period 2017 - 2020. This paper also studies the effects of Geographical Characteristic on the relation between FDI inflows of provinces and Vietnamese Provincial Competitiveness. We find that an increase in FDI is associated with a higher level of provincial competitiveness, and the coefficient is higher for provinces witnessing significant growth in FDI recently. Our study also demonstrates that geographical characteristics do not create a profound impact on provincial competitiveness, as proved by previous studies.