Promoting The Linkage Between Foreign Direct Investment And International Trade In The Context Of New Free Trade Agreements In Vietnam

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Authors: Nguyen Minh Tuan, Pham Thi Hong Hoa
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Abstract

This study analyzes the linkage between Foreign Direct Investment (FDI) and Vietnam’s international trade in the context of new-generation Free Trade Agreements (FTAs) such as CPTPP, EVFTA, and RCEP. Using a qualitative approach based on secondary data, the study highlights that FDI plays a pivotal role in expanding production capacity and exports, contributing to Vietnam’s consistent trade surplus over multiple years. However, heavy reliance on the FDI sector, low domestic value-added, and limited linkages between FDI enterprises and domestic firms pose challenges to sustainable development. The study proposes selective FDI attraction, strengthening FDI-domestic enterprise linkages, maximizing FTA benefits, promoting technological innovation, and improving institutional frameworks to enhance long-term competitiveness.

Fields of Study & Subjects

International Business and FDI Global trade and economics Economic Zones and Regional Development

Publication details

Journal / source
ACR North American Advances
Publication date
17 January 2026