The Impacts Of Foreign Direct Investment

In the period of modernization and industrialization, globalization is developing strongly, which leads too many results. Foreign Direct Investment is one of the results of its. Foreign direct investment has grown at a rate since the early 1980s, and the world market has become more competitive. Developing countries are becoming increasingly attractive investment destinations and are influenced a lot by Foreign Direct Investment. The impacts of Foreign Direct Investment are to transfer the technology; to supplement the capital for the economy, to be impulse to export and expand the scope of the market; to develop the manpower and create the job.

Foreign Direct Investment is an investment made by a company or individual in one country in business

Technology is one of the factors which determine the capability to develop of one country. None of country has all technologies to make all modern equipment; machines that they want. Due to the different growing between countries, some developing countries cannot afford to create equipment, so they are forced to buy from the others country. Consequently, growing and developing technology are the two priority task which each country must do first. Partly or completely the objective of transferring machinery includes the tips of its, the knowledge about machinery which is handed over. Transferring the technology means internally transferring between branches of the transnational corporations. The internal enterprises learn how to make from the original and to change to be suitable with their nations’ conditions. Transferring including two ways, they are from externally available machinery and the increasing from the institute of researches. By contrast, the technology will be obsolescence, old or the condition of one country who receives the technology cannot use that. For example, in Vietnam, the project The Polytex Far Eastern Limited Company in Binh Duong is invested by Taiwan that are to produce polyester product with the capital more than 485,8 million USD. Furthermore, the industrial park Vietnam Singapore III which are invested 284,75 million USD by Singapore in Binh Duong to provide,

Improving the manpower and creating the job are the two tasks to boost the economist. The foreign investments always want to receive much more revenue, maintain the position, after that they always use the labor cheap in the invested country. Foreign Direct Investment makes the good impact through some projects. Some individuals working in many enterprises have the choice to approach the higher technology, to learn the higher leadership management and the best science technology. Moreover, the nation has the choice to enhance the level of the labor, to train the labor to use effectively the modern machine, then it can impulse the economist develops fast, the company can receive much more revenue and more reputations. Vietnam is a well – known country which attracts the capital from Foreign Direct Investment. Many years ago, the percentage of labor working in the transnational corporations occupied approximately 0,04%, now in 2017, this percentage increases to 1,6%. In 2010, Foreign Direct Investment sector has attracted 1,7 million direct employees, 80% of those work in industrial zone. In 2015, the amount of labor is 2,2 million, which occupies 4,2% compared to the whole country. In addition, Foreign Direct Investment also creates job for 2,5 million for indirect employees. Foreign Direct Investment sector is as training outsourcing, enhance the level of the workers,