EFFECTS OF FOREIGN DIRECT INVESTMENT ON EMPLOYMENT IN VIETNAM
Vol. 130 No. 5B (2021), Original Article
Vol. 130 No. 5B (2021)

EFFECTS OF FOREIGN DIRECT INVESTMENT ON EMPLOYMENT IN VIETNAM

Original Article
https://doi.org/10.26459/hueunijed.v130i5B.6251
Published 2021-10-26
Nguyen Thị Mai Phuong
Foreign Trade University
Tran Thi Thanh Suong
Vo Thi Dieu Ai
Hoang Phuong Uyen
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Keywords

foreign direct investment
employment
Vietnam

Abstract

The paper assesses the interconnections between foreign direct investment (FDI) and employment in Vietnam over the period 2010–2019. The analysis uses employing panel data of all 63 Vietnamese provinces from the General Statistics Office of Vietnam and Pooled OLS method to determine effects of FDI on employment. Findings reveal that FDI affects employment. In particular, FDI has a positive impact on employment in Vietnam in the short run and negative effects in the long run. However, the benefits of FDI on employment are considered limited. Effects of FDI are discrepant across economic sectors, in which FDI has the strongest impact on the foreign-invested economic sector. Results also show that the effects of FDI on employment in the 6 key economic regions are different.

https://doi.org/10.26459/hueunijed.v130i5B.6251
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