Factors affecting foreign direct investment: Evidence at foreign technology enterprises in Vietnam

Abstract

The objective of this paper is to test the theoretical model of the factors affecting the attraction of foreign direct investment (FDI) into businesses in Vietnam. The author collected information about 100 foreign technology enterprises with 360 surveys in Hanoi, Da Nang, and Ho Chi Minh City. The author uses SPSS software version 20.0 for analysis. The research results show that: investor's decision is directly affected by eight factors: (1) infrastructure; (2) human resources; (3) quality of public services (CLDV); (4) Advantage of investment sector (LTDT); (5) national brands (THDP); (6) investment policy (CSDT); (7) living and working environment (MTS); (8) competitive input cost (CPDT); of these eight factors, human resources and infrastructure are the two factors that have the most impact on the decision to attract investment from foreign technology enterprises in Vietnam. From the results of the analysis, the author recommends that the Government should promulgate supporting policies and services to attract foreign technology enterprises to invest in Vietnam in the context of Industry 4.0.