• The Journal of Asian Finance, Economics and Business
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• v.7 no.6
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• pp.117-125
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• 2020

This paper aims to investigate FDI attractive factors, which are important to formulate policies to attract Korean direct investment into Vietnam. Based on the literature review and the results of interview with 27 Korean investors in Vietnam, we determined the model of variables attracting Korea's FDI into Vietnam. It is used to assess the impact of attractive factors belonging to three groups of variables to support investment decision; they are macroeconomics variables (including market size factor, labor cost factor, and market openness factor), policies variables (including monetary policy factor and tax rate gap factor), and microeconomics variables (geographic advantage factor representative by location). This research also utilized a relatively new quantitative research method based on the Autoregressive Distributed Lag model (ARDL) with the time data chain from 1995 to 2017 of Korean FDI into Vietnam. It analyzes long-term relationships between dependent variables and independent variables. The result of this study indicates that there are three positive factors (low wages, trade openness and government policy) explaining the FDI flows in the long term. The result also shows that incentive tax policy has had a positive impact on Korean FDI, which has satisfied the aim of seeking efficiency of Korean investors.

• The Journal of Asian Finance, Economics and Business
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• v.5 no.3
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• pp.43-50
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• 2018

The paper aims to investigate the impact of trade cost on export: A Case Study Vietnam. The study conducts a static linear panel data analysis on annual data covering bilateral export between Vietnam and 70 major importers of Vietnam from 2001 to 2013. The gravity model has been one of the most successful applications in empirical trade. In this paper we apply the gravity model to estimate the impact of trade cost on Vietnamese bilateral export value. The paper uses gravity model to estimate the impact of trade cost on Vietnamese bilateral export value. The empirical results derive from a static linear panel data analysis (fixed effects model) indicates that trade cost plays a crucial role in determining the export value that occurs between Vietnam and trading partners. Besides, population of importing country, trade openness of importing country, gross domestic product of importing country and gross domestic product of Vietnam are also significant determinants of Vietnamese bilateral export value. The main findings indicates that trade cost plays a very important role in the Vietnamese bilateral export performance. This suggests that the Vietnamese government should attempt to improve domestic trade costs to enhance competitiveness and increase export growth sustainably.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.1
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• pp.123-129
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• 2020

Intra-industry trade (IIT) has played an important role in international trade of Vietnam as a result of rapid growth of the country. This article investigates the level of IIT between Vietnam and 11 trading partners in Trans-Pacific Partnership (TPP) over the period 2000-2014. Although there have been a large number of empirical researches contributed to the determinants of IIT, most of them only pay attention on developed countries where the trade flows are similar due to similar demand structure and production technology. Until now, there is no study on intra-industry trade between Vietnam and countries in TPP that Vietnam recently signed a trade agreement in early 2016. IIT is measured by the Grubel-Lloyd index. The index shows that the extent of intra-industry trade between Vietnam and the trading countries is not high due to the level of economic development and the market size. The determinants of IIT are examined using a panel regression model. In the empirical analysis, the results indicate that Vietnam's intra-industry trade is positively correlated with country size, while it is negatively correlated with income dissimilarity, the trade openness, and geographical distance. This study contributes to the new theoretical trade theory on the evidence of developing country's IIT.

• Journal of Distribution Science
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• v.20 no.4
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• pp.77-83
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• 2022

Purpose: This study aims to find the impact of international trade cooperation and distribution on foreign direct investment (FDI). The study also tests the impact of lag variables of trade cooperation and distribution on FDI in the future. Research design, data, and methodology: Autoregressive Distributed Lag model is applied to analyze the impact of chosen variables such as total trade (TRADE), trade openness (OPEN), the exchange rate (EXR), inflation (INF), and gross domestic growth (GDP) on FDI. Quarterly data is collected from Vietnam General Statistic Office, Vietnam General Department of Customs, International Monetary Fund, and The World Bank from 2006 to 2020. Stata 14 software is used to analyze the regression and test variables. Results: The findings indicate that TRADE, OPEN, INF, GDP, and their lags affect both positively and negatively on FDI in different periods. While OPEN still expresses an unclear impact on FDI. Moreover, this study proves that the FDI of a nation is influenced by international cooperation. Conclusions: This study indicates the importance of international trade cooperation and distribution in not only attracting foreign investment sources but also developing the economy. Findings are necessary bases for governments or authorities in signing international trade agreements in the future.

• Korea Trade Review
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• v.44 no.6
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• pp.217-230
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• 2019

This study investigates the impacts of international trade and foreign direct investment (FDI) on income distribution both nationally as well as provincially in Vietnam. This study uses panel data of 63 provinces in Vietnam for the period of 2008-2016 and a time series dataset from 1992 to 2016. We found the following results. First, the income distribution is significantly affected by per capita income. When we consider the Kuznets hypothesis, the intra-provincial income inequality of Vietnam's 63 provinces follows a regular U-shaped relationship. In contrast, the income distribution in Vietnam exhibits an inverted U-shaped relationship between the Gini coefficient and per capita income. Second, the inward FDI tends to reduce income gaps in each province through the employment of predominantly low-skilled workers. FDI, however, seems to increase income inequality throughout Vietnam. This result is potentially due to the strong concentration of FDI into a very few areas. Third, the effect of trade openness exhibits a decrease in inequality both within each province and in the whole country of Vietnam.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.771-780
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• 2021

The study assesses the impact of tariffs on Vietnam's trade in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Research data was conducted between 2001 and 2018 on the official website of the Uncomtrade and the World Bank. This paper uses the gravity model to estimate the relationship between data series and considers the impact of factors on Vietnam's trade with CPTPP countries. The results have proven that tariff reductions have a positive effect on Vietnam's trade. Besides, the trade openness of Vietnam and CPTPP countries has positive impacts on Vietnam's trade. The study also shows that Real Effective Exchange Rate (REER) between Vietnam's and CPTPP countries' currencies has no strong effect on Vietnam's trade. Based on these findings, the article also suggests a number of policies to promote Vietnam's trade in future. In order to support businesses to better utilize opportunities and promote exports to CPTPP countries, the government of Vietnam should: (1) focus on reducing costs and time to participate in the market for production and business investors; (2) improve business investment environment to mobilize resources for production; and (3) continue to organize information campaigns to raise businesses' awareness of how to take advantage of CPTPP preferences.

• International Commerce and Information Review
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• v.15 no.3
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• pp.225-243
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• 2013

This paper analyses the effects of innovation and openness on productivity in Korean firms using company innovation index which issued by STEPI in 2012. The data contains 296 companies which are registered in Korean stock market. I observed that the effect of past R&D investments on innovation is significant than current R&D investment. The regression results show that company innovation index has significantly positive effects on the firm's revenue. The firm size and the openness also have an important effect on the firm's revenue.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.7
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• pp.17-26
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• 2022

This paper analyzes the comparative advantages and development prospects of the China (Anhui) Pilot Free Trade Zone. Based on a SWOT analysis method, this study finds that the Anhui Pilot Free Trade Zone has a set of comparative advantages, including location advantage, rich resources, industrial transformation and new industries, technological innovation capabilities, new patterns for development, and policy support. In recent years, by leveraging its key resources, Anhui Province has been committed to developing an open economy. Furthermore, its economic vitality has increased significantly under preferential policies such as the Belt and Road Initiative, the China-Europe International Freight Shuttle, and the Yangtze River Economic Belt Development Plan. As a result, the total foreign trade has continued to grow. The findings of this study highlight that the comparative advantages are of great significance to the development of the Anhui Pilot Free Trade Zone, which helped expand the scope and openness of the regional economy and foreign investment. However, to achieve the development objectives of the Anhui Pilot Free Trade Zone as planned, these comparative advantages must be developed and converted into a set of sustainable competitive advantages for the regional economy. Therefore, a few development suggestions are put forward.

• Journal of Labour Economics
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• v.37 no.4
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• pp.25-57
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• 2014

Analysing the effects of expanded trade liberalization on the domestic labor market such as the flexibility of employment adjustment and the wage elasticity of employment etc. with industry base data, we get some important results as follows. The speed of employment adjustment in whole industries is turned out to be more rapid on the employee basis than on the whole worker basis. And the speed of employment adjustment is more rapid in the industries with high level of import ratio than those with high level of export ratio. In sum, viewing on the employee basis, the expanded trade liberalization makes the speed of employment adjustment slower slightly in individual industry level, and it is led mainly by the effects of export ratio rising. In case of the wage elasticity of employment, it becomes to be much higher as rates of openness or export ratios go higher, so the environment of jobless growth seems to be much more strengthened in this country.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.3
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• pp.295-302
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• 2020

The paper aims to investigate the impact of foreign direct investment (FDI) on private investment with a sample having 49 developing countries in Asia (17 countries) and Africa (32 countries) during the period of 1990-2017. Unlike previous studies, we split the data into three groups for further analysis, including the Asian, African and the full-panel samples. The results confirm a crowding-in effect which shows that foreign direct investment promotes private investment on all three research samples. Besides, the lagged private investment has a positive and significant effect on itself in the next period which reflects the inertia in the trend of private investment in recipient countries. In the full-panel sample, there are some macro factors such as GDP per capita, trade openness, and electricity that also have a positive and statistically significant impact on private investment. Besides, when more deeply estimate with smaller samples, we find that trade openness and labour force have a positive and significant in Africa, on the other hand, not in Asia. However, the domestic credit variable has a negative and significant effect on private investment only in Asian developing countries. Furthermore, there is only a positive and significant impact of the electricity variable on private investment in Asia.