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MASTER THESIS OF
MPPM
Some solutions for further attracting
Foreign Direct Investments in
Binh
Dinh
province in the coming time
Auilwrs:
- Nguyen
Thanh Vinh
'
Nguyen
Thi Lun
Anh
- Do Thi
Thuy
Van
Superviors:
- Lars
Torsten
Eriksson^
MSc,
PhD
- Nguyen Tien
Dung«
PhD
Class: MPPM Intake
2,
group 14
Hanoi,
September
2011
UPPSALA UNIVERSITY
UPPSALA UNIVERSITY OF ECONOMICS & BUSINESS, VNU
UNIVERSITET
EP*^
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MASTER THESIS OF MPPM
Some solutions for further attracting
Foreign Direct Investments in Binh Dinh
province in the coming time
Authors: -
Nguyen
Thanh Vinh
- Nguyen Thi Lan Anh
- Do Thi Thuy Van
Superviors: - Lars Torsten Eriksson, MSc, PhD
- Nguyen Tien Dung, PhD
Class: MPPM Intake 2, group 14
Hanoi,
September
2011
THESIS SUMMARY
1.
Title of thesis:
"Some
Further Solutions for Attracting Foreign Direct Investments (the
"FDI")
in
Binh Dinh Province in the coming time".
2.
Academic level: Thesis of Master Program in Public Management.
3.
Author: Nguyen Thanh Vinh, Nguyen Thi Lan Anh, Do Thi Thuy Van
4.
Instructors: Vietnam supervisor: Nguyen Tien Dung, PhD
Uppsala supervisor: Lars Torsten Eriksson, MSc, PhD
5. Date of completion: August
20n.
6. Purpose
Capital is a very important resource for development, and it is particularly needed in developing
countries to tackle the cycle of poverty: low income
—*•
low accumulation
-^ low
technology
—>•
low
productivity
-^
low income, etc Hence, the fast and efficient attraction of domestic and foreign capital
resources, especially the foreign direct investment has significance for the development of a country,
particularly developing countries like Vietnam.
Binh Dinh Province is a potential area in the key economic zone in the Central Part of Vietnam.
Seeing the importance of the
FDI
for the development, Binh Dinh has actively attracted the
FDI
by
various measures but the results of attraction are too modest compared to its
potentiality;
therefore,
it
is required to find solutions to overcome through research of the situation of FDI attraction and causes
of achievements and limitations in attracting the FDI in Binh Dinh.
7.
Method
- Using the model of Nguyen Manh Toan in respect of factors affecting the FDI attraction as a
theoretical basis for assessing causes of success and limitations in attracting the FDI in Binh Dinh.
- Using the method of analysis-synthesis, the method of qualitative and quantitative analysis to
analyze and evaluate collected statistics, reports and other data.
- Using the method of interview of some related objects for gathering more data.
8.
Results
and conclusions
Through the thesis analysis we come to a conclusion that the FDI that has increased
rapidh
in
Binh Dinh in recent years compared to previous periods is mainly because of:
-
Having a favorable geographic location.
- Having a synchronous infrastructure system.
- Having advantages of setting up the Nhon Hoi Economic Zone, 8 industrial zones and 37
industrial groups.
1
- Having plentiful resources and potentiality.
- Quite strong development of the provincial economy in recent years with the GDP growth on
average of 12%.
- Issuing many policies with investment incentives, rendering administrative reforms actively;
simultaneously paying more attention to investment promotion activities. Political security and social
order is stable.
- Enjoying benefits from the results of expanding foreign relations between Vietnam and other
countries around the world, as well as increasing improvement of
the
law system,
mechanisms,
general
policies of Vietnam with respect to encouraging direct foreign investments
However, the amount of attracted capital is little, not corresponding with the potentiality of Binh
Dinh and not contributing much to the development of
the
area because of:
* Objective reasons
- The impact of the global financial crisis and economic slowdown. Limited capacity of some
investors
- The strong competition of some localities with comparative advantages better than those of Binh
Dinh
* Subjective reasons
- Binh Dinh is not really ready for planning and sites for investors.
- The infrastructure of Binh Dinh is not really convenient to attract investments.
- Administrative procedures in several areas relating to in\eslment remain cumbersome,
troublesome, causing delays and congestions
- The location declaration is not clear
- The
investment
promotion is inefficient.
- The analysis results of the thesis as stated above show why Binh Dinh is a province with
potential in attracting the FDI but the attraction results are modest. Those are the basis for seeking
solutions to o\ercome this situation. According to us the two factors namely the unclear location
declaration statement and inefficient investment promotion are the two causes of most powerful
impacts which need deeper research
9.
Recommendations
for future study
The most fundamental limitation of the thesis is only focusing on the assessment of the FDI in
Binh Dinh. hardly considering impacts of this capital resource on the economy and society of
Binh
Dinh, especially negative ones. This can affect the firmness of the subject significantly because
although the FDI is essential for the development, it is not because of which the attraction is made at
all
costs regardless of its negative impacts. The FDI attraction also requires a selection and prudent
strategies to both attract this capital resource quickly and limit its negative impacts
10.
Contribution of the thesis
- The thesis adds two factors of clear positioning messages and effective investment promotion to
improve the theoretical model of Nguyen Manh Toan in respect of factors affecting the FDI. In our
opinion, in a current globalization age with increasingly fierce
competition,
these two factors are
important in fast FDI attraction of
a
region, a nation.
- The thesis has raised some measures to promote the FDI attraction as a basis for policy-makers in
Binh Dinh to refer in the course of making their decisions.
