Determinants Influencing the Investment Decision of Large Firms in Vietnam

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Abstract

Attracting investment is currently a top issue for Vietnam in general and localities in particular, especially attracting capital flows from large firms in high-tech, eco-friendly industries, toward a green economy and sustainable development. So, this research is conducted to attract investment effectively from large firms, based on the determinants that influence business investment decisions. The study carried out 226 survey samples of large non-state firms in Vietnam, using the EFA test and linear regression. The results reveal that investing in Vietnam is the right decision, and supporting services have the largest influence, followed by human resources, geographic infrastructure, input costs, and market, respectively. Based on the findings, some recommendations are proposed for localities to improve their investment environment and efficiency in order to attract strategic investors and meet the province's sustainable development orientation.

About the authors

Minh Phuong Nguyen

National Economics University

Author for correspondence.
Email: Phuongntm@neu.edu.vn
ORCID iD: 0000-0002-5888-4772

Ph.D. (Economics), Senior Lecturer

Viet Nam, Hanoi

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