This thesis analyses the determinants of Foreign Direct Investment in Vietnam from 1988-2009. It examines the nature, motivation and impact of FDI upon the Vietnam economy and its contribution to the subsequent leap forward in economic growth. The focus is on developing Dunning’s eclectic theory through case study analysis of Honda-Vietnam Motorbike Company and ANZ-Vietnam Bank. The prominent theories on FDI generally used in the thesis focus on Vernon’s Product Life Cycle (PLC) model, the Market Imperfection Theory (MIT), the Transaction Cost (TC) or internalisation approach and Dunning’s Eclectic Theory. Dunning is the clearest methodology for understanding the Vietnamese case as its method is to take account of a countries particular FDI characteristics and their impact on economic growth. The addition of an emphasis on the impact of culture upon the development of FDI in Vietnam provides this thesis with evidence of its originality and legitimacy to the claim of filling a gap in the literature on FDI in developing countries and the advancement of economic theory. The main focus in the case studies is demonstrating how foreign invested enterprises altered production, management, service and marketing processes to adapt their traditional, organisational and locational advantages to suit the local environment, and give them both foreign and domestic comparative advantages, ensuring the maximum possible capital return on their investments.