Details for Viet Nam Industrial Investment Report 2011

Understanding the impact of foreign direct investment on industrial development

The UNIDO Industry Investor Survey 2011 and the resulting Viet Nam Industrial Investment Report 2011 constitute an integral part of the first output of the project ‘Platform for Investment Monitoring and Supplier Development Phase I’. These outputs have sought to unearth important aspects of the investment impact of FDI in Viet Nam’s industry. They reveal an industrial sector which is striving to succeed in increasingly competitive global markets. The unprecedented inflows of FDI have had a positive impact on the economy in terms of growth in employment, exports, injection of capital and technology and the attainment of certain spillover effects. Simultaneously, however, increased FDI performance has also magnified the inherent structural economic challenges faced by the Vietnamese economy. The underlying fundamentals of an industrial sector based on labour-intensive, capital and material imports point to a need for a reassessment of the FDI-led export growth model as well as to a heightened urgency to move the country up the industrial upgrading ladder.