The relationship between fdi and the three pillars of esg: A solution to the sustainable development challenge?

Abstract

Governments of Asia-Pacific economies are implementing numerous policies to develop their economies, with sustainable development goals always being a primary concern. Development aimed at promoting ESG is considered a top priority in many countries, while economies in the Asia-Pacific region are also adopting policies to attract FDI for easier access to foreign capital. However, policies promoting ESG present significant challenges for foreign investors in the region, as temporary changes may lead to losses in investors' profits. Therefore, the research team analyzed the three pillars of ESG in combination with macroeconomic factors to identify which factors affect FDI, and proposed policies and strategies to address the issues raised, aiming to promote both FDI attraction and sustainable development policies in parallel. Additionally, the research team extended the analysis to Vietnam, searching for key economic factors in the process of self-sufficiency and internal development to propose a development direction that optimally utilizes FDI capital without becoming overly dependent on it. By promoting internal economic strength, along with rapid advancements in technology and diplomacy, the research team proposes a sustainable economic development solution with the goal of strengthening Vietnam's internal economic capabilities.