The factors affecting foreign direct investment at the industrial zones of Dong Nai Province

At present goods, technology, and capital are easily transferred in the global economy, especially from developed countries to less developed countries. Foreign direct investment (FDI) is a means which helps investors in developed countries to transfer them to developing countries. Therefore, FDI plays an important role in the economic development. | TẠP CHÍ KHOA HỌC - ĐẠI HỌC ĐỒNG NAI, SỐ 05 - 2017 ISSN 2354-1482 THE FACTORS AFFECTING FOREIGN DIRECT INVESTMENT AT THE INDUSTRIAL ZONES OF DONG NAI PROVINCE Nguyễn Thị Lý1 Trà Văn Trung2 ABSTRACT At present goods, technology, and capital are easily transferred in the global economy, especially from developed countries to less developed countries. Foreign direct investment (FDI) is a means which helps investors in developed countries to transfer them to developing countries. Therefore, FDI plays an important role in the economic development. In a developing country, FDI contributes a lot to the development of its economy: receiving modern technology from investors, creating jobs for laborers, improving labor skills,etc. The research aims are (1) identifying the factors affecting the FDI attraction in Dong Nai Province;(2) analyzing factors which affect FDI attraction at Dong Nai industrial zones in order to find out foreign investors’ satisfaction level; (3)proposing recommendations to improve FDI attraction in Dong Nai Province. Keywords: Foreign direct investment, factors affecting, economic, Dong Nai constant pressure to attract FDI for its 1. Introduction own national economic interest, and Since the issue of foreign since it is located within one of the most investment law of Vietnam in 1987, dynamic area in the world for FDI has remarkably contributed to international investors. Actually, supplementing the capital resource, “Vietnam has become an attractive host transferring technology, increasing country, been the third largest recipient of exportation and employment and FDI inflows in the ASEAN, behind become the important factor in speeding Singapore and Malaysia, and strengthened up the growth rate of economy of the its position as a significant investment country, strengthening the transfer of base” (Mirza and Giroud, 2007) [1]. economic structure towards Borensztein, E., et al. (2008) [2] industrialization and modernization. stated that “the .

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