Parker, Steve and Phan, Vinh Quang and Nguyen, Ngoc Anh (2005): Has the U.S.-Vietnam Bilateral Trade Agreement Led to Higher FDI into Vietnam? Published in: International Journal of Applied Economics , Vol. 2, No. 2 (2005): pp. 199-223.
Download (250kB) | Preview
In December 2001, a Bilateral Trade Agreement (BTA) came into effect that normalized economic relations between the United States and Vietnam. The resulting surge in trade surpassed most expectations. The impact of the BTA on FDI, however, has been less visible, especially with regard to U.S. FDI into Vietnam. This paper uses new data that accounts for FDI by U.S. subsidiaries resident in third counties to show that U.S. firms have been much more aggressive investors in Vietnam than normally reported in typical bilateral FDI data using Balance of Payments definitions of capital flows. While the U.S. is widely reported as the 11th largest investor into Vietnam, the new data shows that U.S.-related FDI exceeded all other countries in 2004. Although a formal model is not developed, descriptive data supports strongly the conclusion that the BTA has had a major impact on FDI into Vietnam, especially with regard to FDI from U.S. multinationals.
|Item Type:||MPRA Paper|
|Institution:||DEVELOPMENT AND POLICIES RESEARCH CENTER|
|Original Title:||Has the U.S.-Vietnam Bilateral Trade Agreement Led to Higher FDI into Vietnam?|
|Keywords:||FDI; Trade Agreement|
|Subjects:||F - International Economics > F0 - General > F00 - General|
|Depositing User:||Anh Nguyen|
|Date Deposited:||03. Mar 2007|
|Last Modified:||12. Feb 2013 00:12|
Center Institute for Economic Management and STAR-Vietnam. 2003. “An Assessment of the Economic Impact of the United States-Vietnam Bilateral Trade Agreement: Annual Economic Report for 2002,” National Publishing House, June. Center Institute for Economic Management and STAR-Vietnam. 2003. “An Assessment of the Economic Impact of the United States-Vietnam Bilateral Trade Agreement: Economic Report for the First Six Months of 2003”, National Publishing House, December. Center Institute for Economic Management and STAR-Vietnam. 2004. “An Assessment of the Economic Impact of the United States-Vietnam Bilateral Trade Agreement: Trade Update Report for 2003,” National Publishing House, June. Ministry of Planning and Investment’s Foreign Investment Agency and STAR-Vietnam. 2005. “The Impact of the U.S.-Vietnam Bilateral Trade Agreement on Overall and U.S. Foreign Direct Investment in Vietnam,” forthcoming in September. Multilateral Investment Guarantee Agency. 2002. Foreign Direct Investment Survey, January. Otexa.ita.doc.gov/#IMPORTQUOTAS. United Nation Conference on Trade and Development. 2004. World Investment Report. U.S.-Vietnam Trade Council. 2004. “The U.S-Vietnam Bilateral Trade Agreement: A Survey of U.S. Companies on Implementation Issues,” May 10. Vietnam Business Forum On-Line. Vietnam Chamber of Commerce and Industry, www.vibonline.com.vn. Vietnam Business Forum. International Finance Corporation, www.vietnambusinessforum.org. Vietnam Economic Times. 2005. May 18.