Impact of foreign direct investment on employment: A case study of Vietnam

Tóm tắt

Vietnam is an attractive destination for foreign direct investment (FDI), with job creation a significant benefit. This study utilizes data from the 2007 and 2011 Vietnam Enterprise Survey (VES) to explore the empirical relationship between FDI and employment in Vietnam. The findings reveal diverse impacts of FDI on employment. Specifically, the horizontal spillover effect of FDI positively influences employment, whereas the forward and backward vertical spillover effects show a negative impact. These results underscore the heterogeneous nature of FDI's impact on employment dynamics. Drawing from these insights, the study proposes several policy recommendations to optimize the benefits of FDI for Vietnam.