Assessing Effects of FDI on Economic Growth Via Impact on Domestic Firms in Vietnam

In this paper, we will describe the selection of variables, model, and determinants of economic performance in Vietnam. The presence of FDI has created competitive pressures on domestic enterprises. This study uses panel data for Vietnamese enterprises in the industry from 2000 to 2018, which quantifies the impact of FDI on the industry leaving domestic enterprises. The results show that in addition to factors such as import and export status, industry concentration, income, age of enterprise, and number labor in enterprise, the emergence of FDI in the same industry increases the ability of domestic firms’ exit.