Abstract
This study examines the relationship between capital account liberalization and Vietnam’s economic growth during the 2006–2019 period. It systematizes the theoretical foundations of foreign direct investment (FDI), foreign portfolio investment (FPI), and official development assistance (ODA), while analyzing their effects on key macroeconomic variables such as exchange rates, interest rates, and inflation. A distinctive contribution of the study lies in its combination of qualitative and quantitative methods to highlight the importance of a phased liberalization approach, with priority given to long-term capital flows, particularly FDI, over short-term capital flows such as FPI. The study also proposes measures for managing capital flows and strengthening financial institutions to optimize the use of foreign resources for sustainable economic growth.
