Why can’t Mekong Delta provinces attract foreign direct investment capital?

• Main Author: Nguyễn Kim Phước
• Format: Article
• Language: Vietnamese
• Published: TẠP CHÍ KHOA HỌC ĐẠI HỌC MỞ THÀNH PHỐ HỒ CHÍ MINH 2020-08-01
• Series: Tạp chí Khoa học Đại học Mở Thành phố Hồ Chí Minh - Kinh tế và Quản trị kinh doanh
• Subjects: đầu tư trực tiếp nước ngoài; đồng bằng sông cửu long.
• Online Access: https://journalofscience.ou.edu.vn/index.php/econ-vi/article/view/734

Applying the Harrod -Domar model and the development model of Hecksher -Ohlin (H -O), this study describes the movement of foreign capitals as compared with previous studies. Twelve independent variables were used to determine the factors affecting FDI in the Mekong Delta in the country’s context. The study aims to find out why the Mekong Delta cannotattract foreign direct investment capital. The findings reveal that under-developed infrastructure, and low capitals of the state and private sectors are the major causes. Besides, the aperture of economy and the labor force also affect FDI. Foreign investors are interested in GDP when they decide to invest in local areas, but that does not mean provinces / cities with high GDP will attract more FDI.