IS VIETNAM THE NEW ASIAN TIGER? SCOREBOARD ANDMACROECONOMIC EVALUATION OF THE ATTRACTIVENESS FORFOREIGN DIRECT INVESTMENT

• Main Authors: Nathalie Homlong, Elisabeth Springler
• Format: Article
• Language: English
• Published: Social Sciences Research Society 2012-07-01
• Series: International Journal of Economics and Finance Studies
• Online Access: http://www.sobiad.org/eJOURNALS/journal_IJEF/archieves/2012_no_2_new/nathalie_homlong.pdf

Followingeconomies like China and India,alsoVietnamhas managed toincreaseits attractiveness for foreign direct investmentsin recent years. In contrast tomany European economies Vietnam had overcome the financial and economiccrisisin 2008 quicklyand turned back to high growth rates already in 2010/11.Nevertheless many European economies and companies still regard Vietnam as anunstable and fragile economy. Therefore the questions arisewhich generalinvestment conditions are of importance for companies that are investing abroad,and which factors make Vietnam attractive asa business locationfor foreigncompanies? After a presentation of stylized facts about Vietnam and a discussionof location theories and location factors, we develop a scoring method to evaluategeneral investment conditions. Eight of the member states of the European Unionin Central and Eastern Europeare used as reference groups to test the scoreboardrating tool, before it is applied for Vietnam.