Most of the least developed countries fall into the "vicious cycle" that is: low income leads to low savings, low investment and therefore the consequences of low income is recorded. The status of this vicious hard button is that the country must overcome to integrate into our modern economic orbit. Many countries falling into stagnation of poverty by not selecting and creating breakthrough point accurately. A chain of "vicious".The biggest obstacle to doing that for the less developed countries as capital and technology. The capital is the basis of creating jobs in the country, technological innovation, technique, increase labor productivity etc. From there create the premise, the cumulative increase in income increases for the development of society.However to generate capital for the economy rely on internal capital, the unavoidable consequences is going to lag in the development of the world. So that foreign capital would be a "kick" to donate ghần foray into the "vicious". Particularly important source of FDI to overcome lack of capital that does not cause the debt to countries receiving investment. Unlike the loan investment countries only get part of the profits appropriately when active investments effectively. Furthermore the amount of capital has advantages over capital in place. The repayment term of the loan is usually fixed and sometimes too short compared to a number of investment projects, while the time limit FDI, the more flexible.According to theoretical models, "two vulnerabilities" of Cherery and has two main obstruction Stront for the us of a country that is: not enough savings to meet the investment needs are called "savings gap". And the income of export activities do not meet the needs of foreign currency for import operations are called "trade gap".Most of the least developed countries, the two holes on the great. So FDI increase competitiveness in export expansion tranhvà of the country receiving the investment, collecting a portion of profits from foreign companies, income from activities for services FDI.
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