The paper analyzes factors affecting decisions on investment in HCMC municipal bonds for infrastructure projects. This serves as a basis for policy recommendations that aim at enhancing the mobilizing power of municipal bonds for infrastructure project in particular and socioeconomic development in HCMC in general. | An Analysis of Factors Affecting Decisions JED January 2014| 93 An Analysis of Factors Affecting Decisions on Investment in HCMC Municipal Bonds Nguyễn Thị Mỹ Linh Industrial University of Hochiminh City mylinhdhcn@ Phùng Thị Cẩm Tú Industrial University of Hochiminh City phungcamtu@ Đào Thị Minh Huyền University of Economics HCMC minhhuyen@ ARTICLE INFO Article history: Received: May 30, 2013 Received in revised form Sep. 24, 2013 Accepted: Dec. 31, 2013 Keywords: bonds, municipal bonds, affecting factors, investment decisions. Dương Thị Bình Minh University of Economics HCMC dbminh@ Vũ Thị Minh Hằng University of Economics HCMC vuhangngoc16@ Diệp Gia Luật University of Economics HCMC gialuat@ ABSTRACT The paper analyzes factors affecting decisions on investment in HCMC municipal bonds for infrastructure projects. Results of EFA and regression analysis show that decisions on investment in HCMC municipal bonds depend on five factors with adjusted R2 equaling 72,1%: (1) government’s policies; (2) bonds and issuers; (3) infrastructure projects and socioeconomic conditions; (4) economicfactors; and (5) impacts of relevant markets. This serves as a basis for policy recommendations that aim at enhancing the mobilizing power of municipal bonds for infrastructure project in particular and socioeconomic development in HCMC in general. 94 | Dương Thị Bình Minh et. al. | 93 - 108 1. INTRODUCTION Investments in infrastructure projects play a crucial role in the local socioeconomic development in particular and generate motivation for socioeconomic development in general. The issue is that demand for capital is huge, calling for the mobilization of various sources, among which issuing municipal bonds is one of the effective methods, offering low-interest and long-term capital for infrastructure and other social welfare projects. However, although HCMC has been the first city to issue municipal .
