Cooperation among local governments in attracting foreign direct investment: The case of Binh Dinh province in the Key Economic Zone of Central Vietnam.

Abstract

Based on the data from a survey of the administrators whose jobs are involved with FDI attraction in Binh Dinh province, this study examines the scope, extent,benefits, costs, risks, operating environment and governance of the cooperation that Binh Dinh province’s government has with others in the Key Economic Zone of Central Vietnam from the perspective of the insiders. Research results imply that the cooperation is still of a narrow scope with low intensity. The factors underlying this performance are diversion in perception about the benefits, costs and risks of the cooperation among the people involved; inherent existence of some unfavorable environmental conditions; as well as current lack of professional cooperation governance. To support the expectation of the government to intensify the cooperation, some implications of policies are raised with an emphasis on the necessity to determine appropriate priorities to promote cooperation activities.