Position of Vietnam, Indonesia, and Malaysia in the Competition for Attracting FDI

DOI

10.2991/aebmr.k.200324.135How to use a DOI?

Keywords

FDIs, economic growth, value chains, China, Vietnam, Indonesia, Malaysia, Southeast Asia

Abstract

Features of modern world development are associated with a changing role of developing countries in the competition for foreign direct investment. This article shows that the transformation of China’s domestic policy and its transformation into a new regional leader in Asia has led to a change in the position of Vietnam, Malaysia, and Indonesia as recipients of foreign direct investment. Characteristics of China’s economic development in recent years, namely the high growth rate of urbanization, “building a middle-class society” and the elimination of rural poverty, fundamental changes in environmental policy at the state level, the introduction of universal modernization of production, and so on - all this has led to an increase in cost placement of value chains in China. The purpose of this article is to show how Vietnam, Indonesia, and Malaysia has become the leading recipients of foreign direct investment in Southeast Asia. The research methodology is based on the principles of system analysis and an interdisciplinary system approach. To achieve this goal, the study used empirical methods (collection, study, and comparison of data), methods of comparative analysis and generalization of statistical data, principles of formal logic. As the result of the research, following the successful example of China in adapting conditions for foreign direct investment, Vietnam and, to a lesser extent, Malaysia are ahead of most other Asian countries because it has always adhered to an export-oriented growth strategy, but Indonesia was not able to respond in a timely manner to the changing economic landscape.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Inna Andronova
AU  - Nikolay Gusakov
AU  - Olga Digilina
AU  - Nataliya Dyuzheva
AU  - Nadezhda Kuchma
PY  - 2020
DA  - 2020/03/30
TI  - Position of Vietnam, Indonesia, and Malaysia in the Competition for Attracting FDI
BT  - Proceedings of the “New Silk Road: Business Cooperation and Prospective of Economic Development” (NSRBCPED 2019)
PB  - Atlantis Press
SP  - 729
EP  - 735
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200324.135
DO  - 10.2991/aebmr.k.200324.135
ID  - Andronova2020
ER  -