The foreign direct investment of overseas Chinese (from Taiwan, Hong Kong, Singapore, and Malaysia) in Vietnam: magnitude, reasons, trend and implication

The surge of the overseas Chinese entrepreneurs' or capitalists' foreign direct investment (FDI) from Taiwan, Hong Kong, Singapore, and Malaysia in Vietnam was only noticeable in the early 1990s, especially from 1991 to 1995. Their investment in Vietnam had grown by leaps and bounds, from U.S.$ 1.06 billion to U.S$ 7.81 billion in 1995. By pouring this massive investment into Vietnam, these overseas Chinese entrepreneurs had out-invested other investors from the countries, such as Japan, South Korea, United States of America, France, and Switzerland. In view of this, it does seem clear that this overseas Chinese investment is heading the way to become one of the most dynamic and influential forces in transforming Vietnam's economy. Arguably, an unfavourable sudden change of political and economic circumstances in Vietnam or in the Asia-Pacific region could dash this promising outlook of these overseas Chinese entrepreneurs' increasing substantial investment, and growing economic significance and influence. Nonetheless, by examining the pull and push factors, the extensiveness and penetrability of these overseas Chinese investments into various aspects of Vietnam's economy, and Vietnam's expanding trade ties with East Asian nations and recent accession to ASEAN, the afromentioned argument cannot be established.