TAILIEUCHUNG - Factors affecting foreign direct investment attraction a case study of Thai Nguyen province

The objectives of the study is to analyse the factors affecting FDI attraction to Thai Nguyen Province. The study was conducted in August 2013 in Thai Nguyen. The data utilized in the research included primary data obtained through a questionnaire survey with 32 FDI investors in Thai Nguyen Province in August 2013 and secondary data from statistical yearbook and reports of the provincial and central government. The results obtained from exploratory factor analysis and multivariate regression analysis showed that factors affecting FDI attraction to Thai Nguyen Province included: Policy, Confidence of Investors, Infrastructure. In which, Policy has the highest fluence on FDI attraction. | Trịnh Việt Hùng và Đtg Tạp chí KHOA HỌC & CÔNG NGHỆ 118(04): 185 - 190 FACTORS AFFECTING FOREIGN DIRECT INVESTMENT ATTRACTION A CASE STUDY OF THAI NGUYEN PROVINCE Trinh Viet Hung1*, Tran Anh Vu, Quan Thai Ha, Nguyen Tuan Anh, Đoan Quang Duy2 1 Office of Thai Nguyen Provincial Government, International School of Thai Nguyen University 2 SUMMARY The objectives of the study is to analyse the factors affecting FDI attraction to Thai Nguyen Province. The study was conducted in August 2013 in Thai Nguyen. The data utilized in the research included primary data obtained through a questionnaire survey with 32 FDI investors in Thai Nguyen Province in August 2013 and secondary data from statistical yearbook and reports of the provincial and central government. The results obtained from exploratory factor analysis and multivariate regression analysis showed that factors affecting FDI attraction to Thai Nguyen Province included: Policy, Confidence of Investors, Infrastructure. In which, Policy has the highest fluence on FDI attraction. Key words: FDI, sustainable, Thai Nguyen Province, factors Introduction* In recent years, a big change in trend of FDI inflows with a remarkable growth in FDI to developing countries has been witnessed. Especially in 2012, developing countries have surpassed their developed counterparts in attracting FDI with 9 developing countries ranked in top 20 FDI attractive countries (UNCTAD, 2013). As reported by the United Nations Conference on Trade and Development (UNCTAD, 2012), developing countries in Asia are the leadings to attract FDI during the period from 2008 to 2012. Despite the decrease of 7% in FDI inflows in the whole region in 2012, some countries including Vietnam were bright spots for labor-intensive FDI. Vietnam was also considered one of most FDI attractive among low-income host countries (together with Combodia, Myanmar and Philippines). UNCTAD (2012) forecasted that Vietnam would be one of the potential attractive hosts for .

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