Factors affecting Foreign Direct Investment (FDI) attraction in QuangNam Provine

Abstract

This article studies the factors that affect the attraction of Foreign Direct Investment (FDI) in Quang Nam province, and proposes some measures as well as strategies to enhance the attraction of Foreign Direct Investment (FDI) to Quang Nam.A research model of the factors is built on the basis of building a scale by means of Confirmatory Factor Analysis (CFA), The model is tested by the method of Structural Equation Modelling (SEM) based on the data of a survey from 200 FDI enterprises in Quang Nam province. Research results show that the local advantages and the international environment advantages have great impact on the province\'s FDI inflows. The factors that make up the local great advantage to attract FDI such as institution, human resources, natural resources, supported industry and technology, infrastructure and markets play important roles.Therefore, they should be improved to increase FDI inflows.