The relationship between official development assistance and economic growth: A case of Vietnam

Abstract

This research uses the ordinary least-squares regression method to study the impact of official development assistance (ODA) on economic growth of Vietnam in the period 1993-2019. The method also assesses the impact of foreign direct investment (FDI) on Vietnam economy. Statistical data is collected from the General Statistics Office of Vietnam and Ministry of Planning and Investment of Vietnam. The results of statistical tests show the significantregression method, meaning that ODA and FDI have relationship with the economic growth of Vietnam. However, upon testingof each variable, FDI has a positive influence and promote Vietnam's economic growth, while there has not been sufficient evidence to confirm that the ODA has relationship with economic growth of Vietnam. Vietnam needs to apply practical measures to promote the effectiveness and efficiency of using ODA.