The research identified a system of scales for quantifying factors affecting investor satisfaction, including tangible, reliability, responsiveness, assurance, and empathy. The results show that three factors that affect investor satisfaction are reliability, empathy and assurance, in order of importance. | ECONOMIC DEVELOPMENT No. 208, December 2011 FACTORS AFFECTING FOREIGN INVESTOR SATISFACTION WITH VIETNAMESE INDUSTRIAL PARKS: A QUANTITATIVE MODEL AND POLICY RECOMMENDATIONS by Assoc. Prof., Dr. ÑINH PHI HOÅ* & MEcon. HAØ MINH TRUNG** Foreign direct investment (FDI) has accounted for a large share in Vietnam’s gross investment and played an important role in its economic growth in recent years. Industrial parks (IPs) are considered as a key to sources of FDI. Up till now, there have been 254 IPs where investment realized by foreign-invested enterprises (FIEs) amounted to some US$17 billion providing jobs for million direct workers and some million indirect laborers. To encourage stronger inflows of capital, incentives should be given to FIEs in IPs. To achieve this aim, it is necessary to grasp FIE estimation of services supplied by IPs. Policy makers and IP management boards should identify and quantify factors affecting their satisfaction. Based on theories of economics and current conditions in Vietnam, we develop an exploratory factor analysis and regression analysis model to quantify influential factors. A direct survey of 175 FIEs in two Vietnam – Singapore IPs in Bình Döông was conducted to apply and test the model in practice. The research identified a system of scales for quantifying factors affecting investor satisfaction, including tangible, reliability, responsiveness, assurance, and empathy. The results show that three factors that affect investor satisfaction are reliability, empathy and assurance, in order of importance. Keywords: Industrial park (IP), investor satisfaction, foreign direct investment (FDI), exploratory factor analysis (EFA). 1. Introduction Foreign direct investment (FDI) has accounted for a large share in Vietnam’s gross investment and played an important role in its economic growth in recent years. Industrial parts (IPs) are considered as a key to sources of FDI. Up to the present time, there have been 254 IPs .
