Yaroslavl, Russian Federation
Yaroslavl, Yaroslavl, Russian Federation
The article analyzes the relationship between wage levels and foreign direct investment (FDI) inflows into Vietnam’s economy in the context of its structural transformation from a labor-intensive to a more technology-oriented development model. The empirical basis of the study covers the period from 2005 to 2024 and includes data on average wages (in VND) and FDI volumes, derived from World Bank and national statistical sources. Methodologically, the paper relies on correlation analysis and linear regression modeling, which allow for a quantitative assessment of the nature and strength of the relationship between the variables under study. The results obtained indicate the presence of a statistically significant and stable positive correlation between wage growth and FDI inflows: an increase in labor costs is accompanied by a rise in foreign investor activity. This points to the strengthening of Vietnam’s competitive advantages as a host country for labor-intensive production. At the same time, the identified dependence is interpreted with consideration of the model’s limitations, which does not include institutional, macroeconomic, and sectoral factors.
wage levels in Vietnam; foreign direct investment in Vietnam; labor–capital substitution; correlation and regression analysis
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