Study of Triple Bottom Line Framework to Determine the Ofdi Pattern of Vietnam

Abstract

This study investigates Vietnam’s Outward Foreign Direct Investment (OFDI) spanning from 1990 to 2022, utilizing the Triple Bottom Line (TBL) framework alongside the Fully Modified Ordinary Least Squares technique. The observed positive correlation between CO2 emissions and foreign investment underscores the importance of corporate sustainability. Vietnam’s extensive forested land, comprising 41.89% of its total area, emerges as a pivotal factor in attracting environmentally conscious investors. On the social front, the population size demonstrates a negative impact on OFDI due to heightened competition within the domestic labor market. Regarding economic variables, the Consumer Price Index and patent applications exhibit minimal effects, whereas a growing Gross Domestic Product (GDP) substantially boosts foreign investments. The proposed practical policies for promoting OFDI include reinforcing environmental regulations, incentivizing the adoption of eco-friendly technologies and prioritizing the conservation of forested areas.