International investment is not only an important financial resource but also a driving force for the comprehensive development of the national economy. In particular, in the context of globalization, attracting foreign investment has become an indispensable factor for economic growth, job creation, income improvement, and improvement of people’s quality of life. However, the impact of international investment on the economy and people’s lives can be seen more deeply through specific factors and the relationships between them.
1. International Investment: A Catalyst for Sustainable Job Creation
When foreign investors enter a country, they often implement large-scale projects, especially in manufacturing industries, high-tech services, or infrastructure. These projects require a large workforce from many fields, creating job opportunities not only in direct industries but also in supporting fields.
Technology transfer and labor skills enhancement: When international companies enter the market, they bring advanced production processes, new technologies, and modern management models. This not only creates jobs but also helps improve labor skills and qualifications. Through working at these companies, workers have the opportunity to learn, improve their skills, and become familiar with new technologies, thereby developing their careers in the long term. This is not only beneficial for individual workers but also contributes to the development of high-quality human resources for the national economy.
Creating new occupations: International investment not only creates jobs in traditional industries but can also lead to the development of new occupations, especially in the fields of technology, research and development, finance, and services. The development of these new occupations creates more job opportunities for highly skilled workers, thereby improving the country’s employment structure.
2. International Investment and Its Impact on People’s Income
The income level of the people is a decisive factor in the quality of life and sustainable development of society. One of the most obvious impacts of international investment is raising income for workers by increasing the demand for highly skilled labor and improving working conditions.
Creating higher income opportunities: Foreign companies often apply higher salaries and better benefits compared to domestic companies. This not only attracts skilled workers but also helps improve the income of ordinary workers in manufacturing or service jobs. Competition between companies also creates positive pressure on domestic businesses, forcing them to improve salaries and benefits for workers to maintain a stable workforce.
Income from supporting industries: In addition to creating direct jobs in foreign companies, international investment also promotes the development of supporting industries, such as supplying raw materials, transportation, retail, and logistics services. These industries also create additional job opportunities and increase income for people, especially workers in rural or remote areas where job opportunities may be lacking.
3. Increased Consumer Demand: A Powerful Effect on the Economy
Once people’s income increases, it not only improves the quality of personal life but also boosts consumer demand in the economy. This is an important factor in creating sustainable economic development and overall growth.
People’s ability to spend: As income increases, people will be able to spend more on essential needs and high-end services. This increase in spending not only includes consumer goods but also extends to areas such as education, health care, tourism, and financial services. This promotes the development of domestic manufacturing and service industries, creating a cycle of economic growth.
Creating opportunities for domestic businesses: The increase in domestic consumer demand increases the production of goods and services domestically, while helping domestic businesses expand their scale and improve product quality. Domestic manufacturing companies will have the opportunity to improve and innovate technology to meet market needs, creating strong competition in the economy. This helps the economy maintain stable development without relying too much on external factors.
4. Sustainable Economic Growth
International investment creates a strong spillover effect, not only promoting production and consumption but also contributing to strengthening national infrastructure, thereby promoting the economy in the long term. When foreign companies expand production, they need to improve infrastructure such as transportation, electricity, water, and other public services. This not only creates jobs in these fields but also helps the economy develop sustainably.
In addition, countries receiving foreign investment will attract financial and technological resources from international investors, helping to enhance global competitiveness and international economic integration. This also creates opportunities for the country’s traditional industries to transform, keep up with the development trends of the world, and attract more investment resources.
Conclusion
International investment plays a decisive role in promoting job creation, raising income, and improving people’s quality of life. The increase in income leads to an increase in consumer demand, promotes domestic production, and contributes to the comprehensive development of the national economy. To achieve sustainable benefits from international investment, countries need to have rational management strategies and a favorable investment environment, thereby not only ensuring economic development but also bringing long-term benefits to people and the community.
