FDI and Labor: A Dynamic Duo for Vietnam’s Provincial Exports

Authors

Keywords:

FDI, export performance, Vietnam, labor force, labor quality, FGLS

Abstract

This study investigates the interconnected roles of foreign direct investment (FDI) and labor in driving provincial export performance in Vietnam. Employing the Feasible Generalized Least Squares method and secondary data covering 63 provinces from 2017 to 2022, the research reveals a nuanced relationship between FDI and labor indicators. The result indicates that FDI, skilled labor, and labor size individually boost exports. Furthermore, the impact of FDI on exports might be amplified when combined with a skilled labor force; however, the interaction between FDI and labor size may negatively impact provincial exports due to resource constraints and skill mismatches. These findings underscore the importance of strategic FDI policies and investments in human capital development to foster sustainable and competitive provincial export growth in Vietnam.

Author Biographies

Nguyen Thi Thanh, Faculty of International Business and Economics, Thuongmai University, Hanoi, Vietnam.

Nguyen Thi Thanh is currently a lecturer at the University of Commerce in Hanoi, Vietnam (or Thuongmai University). The author is interested in in-depth research in the fields of: international economics, international trade, green growth and sustainable development.

Nguyen Thi Tinh, Faculty of Law, Thuongmai University, Hanoi, Vietnam.

Nguyen Thi Tinh is currently the dean of the Faculty of Law, University of Commerce in Hanoi, Vietnam (or Thuongmai University)

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Published

2025-11-28

How to Cite

Nguyen, T. T., & Nguyen, T. T. (2025). FDI and Labor: A Dynamic Duo for Vietnam’s Provincial Exports. SOUTHEAST ASIAN JOURNAL OF ECONOMICS, 13(3), 191–218. retrieved from https://so05.tci-thaijo.org/index.php/saje/article/view/273037

Issue

Vol. 13 No. 3 (2025): Southeast Asian Journal of Economics, Vol.13 No.3 (December 2025)

Section

Original Articles

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