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This paper attempts to identify the main factors affecting the process of foreign direct investment (FDI) in Thanh Hoa province in Vietnam. Forty one questionnaires were sent to foreign companies in many regions and ninety questionnaires were sent to government officials in Thanh Hoa province for observation. | VNU Journal of Science: Economics and Business, Vol. 31, No. 2 (2015) 26-37 Factors Affecting Foreign Direct Investment in Thanh Hoa Province Lê Hoàng Bá Huyền* Hồng Đức University, 565 Quang Trung 3 Str., Đông Vệ Ward, Thanh Hóa City, Thanh Hóa Province, Vietnam Received 14 April 2014 Revised 16 June 2015; Accepted 29 June 2015 Abstract: This paper attempts to identify the main factors affecting the process of foreign direct investment (FDI) in Thanh Hoa province in Vietnam. Forty one questionnaires were sent to foreign companies in many regions and ninety questionnaires were sent to government officials in Thanh Hoa province for observation. The survey results show that there are some factors that have been highly evaluated. Companies appreciate the value of shortening the time for investment licensing, the dynamics of provincial leaders and access to investment information and investment policies. However, many enterprises think some important factors such as compensation for land acquisition, land allocation and corruption control are not improved. Thus, these factors have negative effects on the implementation of investment projects in this province. The paper proposes some main policies that the local go vernment should implement in the coming time in order to encourage FDI to this province. Keywords: Foreign direct investment (FDI), economic, Thanh Hoa. 1. Introduction* economic policies and legal frameworks have contributed to open up the country. Trade barriers have been removed and FDI has now become a fundamental part of the economy. The foreign direct investment concept has come to play an important role in the economic development of a large number of countries in the world. It is now widely recognized that FDI can offer important advantages for the recipient economy. In addition to capital inflows, FDI can lead to transfers of technology and know-how, improve access to international markets and spur competition [1]. Thanks the decentralization .
