Identifying the Economic and Non-Economic Determinants of Foreign Direct Investment Inflowsin Vietnam: An Extreme Bounds Analysis
Since the "DoiMoi" reform launched in 1986, Vietnam’s economy has been one of the fastest growing countries
in ASEAN region. Vietnam stands out as a nation with a high political and social stability, which attracts investors from
various partner countries. Foreign direct investment (FDI) inflows play a significant factor that stimulates economic growth
and development in any developing country. Hence, it is crucial to examine the determinants that attract FDI in Vietnam,
while highlighting their both positive and negative effects to govern the prospects. The results of this research confirm that
Becoming official member of WTO, Exchange rate, Foreign direct investment outflows and Mobile cellular subscriptions
are robust driven factors of FDI inflows in Vietnam. Amongst those four, joining WTO is the factor that has the strongest
positive impact on incoming FDI of Vietnam from 2000 to 2016. Other explanatory factors are proved fragile to determine
incoming FDI of Vietnam in this period.
Keywords - Foreign Direct Investment, Vietnam.