A study on factors affecting foreign direct investment in Vietnam

Foreign direct investment (FDI) is a crucial source of capital for the economic development of host countries, particularly developing ones like Vietnam. Faced with increasing competition among countries in attracting FDI, it is necessary for Vietnam to constantly improve its investment environment to attract more FDI. This study uses ordinary least squares analysis to explore the impacts of seven factors on the FDI attraction of Vietnam. The study’s results show that Vietnam should focus on stabilizing its macroeconomic environment and increasing its market size and trade openness to be more attractive to FDI.