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IS IT DIFFICULT FOR VIETNAM TO ATTRACT CAPITAL FROM TNCS?. Group members. NGUYEN THI THANH TRA BAIU08076 LUONG KHANH NHU BAIU08102 DOAN THI HUONG THAO BAIU08155. Social & political stability.
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That is the basic condition to ensure the development of economic external and attract the attention of foreign investors in general and TNCs in particular.
promote the implementation of strategies toward the opening of export
With the motto "Vietnam would like to make friends and reliable partner of all countries in the international community", Vietnam was a 7th member of ASEAN from July 28, 1995, joined APEC in November 1998, the first member of ASEM and member of the WTO from July 11, 2006.
Currently, we have established diplomatic relations with more than 170 countries, trade relations with more than 100 countries and territories and receive investments of nearly 80 countries. Major expansion of economic relations of the Party and State have created necessary conditions to attract and facilitate foreign investment of TNCs.
- 97% Vietnam's enterprises are small and medium enterprises (SMEs), registered capital is no more than 10 billion and 300 employees scale
- The speed of technological innovation in most enterprises is still too slow:Ex: Thailand: 30% Malaysia: 51% Singapore: 73%Vietnam: 2% => too low
- Investment activities for science and technology of Vietnam’s enterprises are still low.
- Still use out of date technology. Most companies have been using the technology in the 80s of the last century and the research and technology innovation capacity are very limited- 80% - 90% of the technology is imported (lag from 2-3 generations)- Generally for the business, the level of equipment: 10% modern 38% average backward 52% very backward=> It is difficut for Viet Nam to attract capital from TNCS.
- Market with goods and services have established but still had so much negative phenomena (fake, smuggled goods, counterfeit brand goods make market turmoil).
- Labor market has appeared. Some referral centers for work and labor export appears leading to the arising negative phenomena and many crises. A highlight of this market is the supply of skilled labor is smaller than demand.
- Monetary market and capital market have been set up but still a lot monitoring.
- High inflation
Transparency, consistency and stability of law is the greatest disadvantage, and also the requirement of foreign investors
It has been improved in recent years still level average in the area
Traffic density in Vietnam only equal 1% of average one of the world
------ > to attractive FDI capital of TNCs-----> Vietnam needs global and consistent solutions.
YOUR ATTENTION ^.^