The role of transnational companies and foreign direct investment in the development of the modern Vietnamese economy

Abstract

The modern tendencies of development of economy of Vietnam are considered in the article. The special attention is paid to the foreign economic line. The increased presence of transnational corporations and increased foreign investment are noted. Contrary to the prevailing before assumptions on the unconditional empowerment of the country as the recipient of foreign direct investment, the authors, following the development of the empirical research in recent years, believe that the situation with foreign investment does not only bring a country-recipient some benefit and development but also threatens with certain long-term negative effects. The situation with the influx to Vietnam of direct and portfolio investment is analyzed by the authors. There is an active support of foreign investment by the state; that has led to record investments into the economy of the country. The prospects of the national program of privatization of state-owned enterprises and IPO of large companies are considered. The Vietnamese leadership intends to use these tools to solve the problems of budget deficit and high public debt. The article also reveals the role of transnational corporations in the GDP formation and export of Vietnam. Due to its geographical position and support of the state in investment activities, Acknowledgment: The article has been prepared with the financial support of the Russian State Russian Federation.