Research on the Influencing Factors of Chinese Direct Investment in Vietnam

Abstract

Vietnam has become a popular destination for direct investment in Southeast Asia. With China-ASEAN Free Trade Area and the “Belt and Road” Initiative, Chinese direct investment in Vietnam has been increasing. This paper describes present situation of Chinese direct investment in Vietnam. Then the paper uses OLS regression to conduct empirical research on influencing factors. The findings reveal that Chinese investment flows to Vietnam are affected by Chinese economic development, Chinese exports to Vietnam, the pool of Vietnamese young labor, Vietnamese labor cost, Vietnamese business environment and trade openness. Finally, the paper provides some suggestions for Chinese investment in Vietnam.