Green foreign direct investment: a systematic review of measurement approaches and implications for Viet Nam

MAI HUONG GIANG

Email: [email protected]

Dr, Banking Academy of Viet Nam

BUI HUY TRUNG

Email: [email protected]

Dr, Banking Academy of Viet Nam

Abstract

The paper reviews existing approaches to measuring green foreign direct investment (FDI) in the context of the global transition toward low-carbon growth. Building on a systematic synthesis of the FDI-environment literature and a critical examination of current measurement practices, the study identifies key gaps, particularly the lack of an operational definition and the absence of an integrated index framework capable of capturing the “green” attributes of FDI flows. The analysis of the Vietnamese context shows that while FDI plays a significant role in economic development, the current statistical system does not incorporate environmental indicators, limiting the ability to identify and assess green FDI in a consistent and quantitative manner. In response, the paper proposes directions for developing a multidimensional measurement framework for green FDI, aimed at supporting evidence-based policymaking and aligning investment attraction strategies with sustainable development objectives.

Keywords: Green foreign direct investment, FDI measurement framework

(This article was published in the Vietnam Economic&Financial Review, Vol 2, Issue 2, April 2026)

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