The negative impacts

- Foreign companies often tranfer technology obsolete and old machinery.

- Foreign direct investment is often mainly due to the transnational corporation, raises fear that the economy’s dependence on industrualized countries.

- To attracting FDI, the HCM city must adopt a number of incentives for investor such as tax reduction or tax examption for companies FDI

- The companies FDI, only invest in the most profitable areas.

Difficulties in attracting FDI

- Having many difficult policies- Labor quality and infrastructure are not synchronized- There is intense competition in attracting FDI from other provinces