Foreign direct investment (FDI) has taken a crucial role in Vietnam’s development process since the launch of
Renovation in 1986. After Vietnam’s accession to the World Trade Organization (WTO), a large amount of FDI capital
flowed into country, up to 140 billion USD, due to the openness of country’s economy; more transparent, predictable
investment environment; and several national advantages. There was a switching of FDI capital from industrial sector
to service one together with a downward trend in agriculture. Like previous period, Vietnam’s FDI capital sources
came mostly from Asia-Pacific region and European economies (net capital, technology exporters). This is probably
owing to Vietnam’s integration with emphasizes on dynamic Asia-Pacific region. Another interesting finding was that,
geographical allocation of FDI was characterized by concentration on three main key economic regions: the Red
River Delta (surrounding Ha Noi, Hai Phong, and Quang Ninh), the Central region (surrounding Da Nang), and the
Southeast region (surrounding Ho Chi Minh City) owing to better infrastructure, abundance of skillful labor force, and
bigger market size. To use/attract FDI capital more effectively and to enhance the role of FDI in Vietnam’s
development process, some suggestions were proposed.