Labor and infrastructure factors affecting provincial distribution of foreign direct investment in Vietnam
Abstract
The study assesses the influence of labor and infrastructure on attracting foreign direct investment (FDI) to the provinces of Vietnam in the period of 2009 - 2020. Research results from linear regression model and random effects estimation method have confirmed the importance of human capital and infrastructure in attracting FDI. The labor-related aspects in this study confirm that tendency of MNEs focusing on labor-intensive industries in Vietnam has not changed. The study also provides policy implications as building and improving the quality of infrastructure with the main goal of reducing inequality in attracting more FDI inflows to Vietnam's provinces in the near future. In addition, the workforce needs to have a plan to prepare themselves with solid knowledge and necessary skills to hone and absorb the know-how transferred from foreign investment companies, to have an ability to contribute to the development of the quality of our country's human resources.
Moraref