Sample Essay on:
Vietnam and Difficulties in Attracting FDI

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Essay / Research Paper Abstract

This 3 page paper reviews an article published in BusinessWeek in 2010, examining why Vietnam is having difficulties in attracting foreign direct investment. The contents of the article are discussed and a view on the article is given regarding its accuracy and insightfulness. The bibliography cites 1 source.

Page Count:

3 pages (~225 words per page)

File: TS14_TEFDIviet.rtf

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Unformatted sample text from the term paper:

at way the country has not been able to replicate the successes that nearby China has seen in attracting foreign direct investment and put much of it down to the volatility within the Vietnamese economy and lack of reform which are further hampered by cultural differences. It is noted that in 2009 the volatile financial markets resulted in two investment funds withdrawing from the market; Indochina Capital Advisors Ltd withdrew following losses of 50% value and un-invested capital belonging to Passport Capital LLC that was to be invested in Cambodian and Vietnamese property was returned. The overall poor performance and volatility is seen with the way that in the Ho Chi Minh City Stock Exchange VN Index was Asias Best Performing Index in 2006, but in 2008 there was a loss of 66% of the value, this was then followed by the global credit crunch and recession which helped to destroyed the faith in the Vietnamese economy. There have been some positive trends in 2009 with the index increasing by 57% and in 2010 up until March 24th there was a further 3.5% increase, however the problems is the way that there have been very short cycles of growth followed by inflation and then a decline in the past as well as currency depreciation. This indicates that there may still be opportunities, but when looking at the political conditions in the country there are barriers. There have been promised made regarding privatization of many state owned enterprises, but this has not yet emerged and as such major companies, such as Vietnam Airlines Corp., all remain in state hands. Interestingly in Vietnam there is only one aircraft that is in private hands, and this may be seen as supporting the argument that there is the potential for ...

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