COMPARATIVE STUDIES OF FOREIGN DIRECT INVESTMENT (FDI) POLICIES BETWEEN VIETNAM AND MYANMAR

Foreign Direct Investment (FDI) has been recognized as an important driver for economic growth and development. Myanmar also highly appreciates FDI as a key solution for the economic growth. Thus, it is important to analyze the changes in FDI policies of Vietnam and Myanmar, and of their FDI policies. Both countries have favorable investment environments, offering abundant cheap labour, natural resources and investment friendly policies. This paper intends to analyze how both countries strive to attract FDI, and which variables determine the inflow of FDI into Myanmar and Vietnam during the period 1989 to 2017 by using the descriptive method. According to our analysis for Myanmar, the economic growth, changes of FDI Laws, changes of FDI polices and taxation system relating to FDI. For Vietnam’ FDI policies have a positive effect in attracting FDI.A rapid development during the last two decades is the continuous growth of FDI in the global economic landscape. This unprecedented growth of global FDI in 1990 around the world makes FDI an important component of development strategy in both developed and developing nations and required policies are designed in order to stimulate inward flows. The possible reason could be unstable investment, trade and banking policies and uncertain governance.Vietnam has experience a sufficient long process of FDI promotion, with notable success and failures