China’s FDI attraction experience:
Insights and lessons for Vietnam

China, as a global leader in attracting foreign direct investment (FDI), has implemented a series of progressive policies to enhance its appeal to investors. Key milestones include the promulgation of the Joint Venture Law (1979), the establishment of special economic zones (1980), WTO accession (2001), amendments to investment regulations (2002–2012), the piloting of free trade zones (2013), and the enactment of the Foreign Investment Law (2019). These policies have significantly contributed to China’s socio-economic development. Economically, FDI has supplied high-quality capital and advanced technology, driving an average annual GDP growth of 9.4% from 1978 to 2002 and increasing GDP per capita by 8%. Socially, FDI has generated substantial employment opportunities, both directly and through inter-industry linkages. Given Vietnam’s similar characteristics and development goals, it stands to benefit from studying China’s FDI strategies. This study examines the implementation of China’s FDI policies and distills lessons applicable to Vietnam’s efforts to attract foreign investment.