Factors Affecting the Decision to Increase Foreign Direct Investment: The Case in Thai Nguyen Province

Thai Nguyen has emerged as a "bright spot" in attracting Foreign Direct Investment (FDI) in Vietnam due to the presence of numerous appealing factors for foreign investors. This paper aims to analyze the determinants influencing the decision to increase FDI capital by employing quantitative methods Exploratory Factor Analysis (EFA) and Multivariate Regression Analysis. Data for the study were obtained from a survey of 206 FDI enterprises and analyzed using SPSS 22.0 software. The findings reveal seven factors that positively influence investors' decisions to expand FDI capital, ranked from most to least significant: infrastructure and support services; market purchasing power; investment incentive policies of the host country; economic, political, and social stability; investor's capacity; investor's motivation; and human resources. The research model accounts for 64.3% of the variation in decisions to increase FDI capital. Based on these findings, several recommendations are proposed to further enhance FDI inflows into Thai Nguyen province.