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How Does the Competitiveness Index Promote Foreign Direct Investment at the Provincial Level in Vietnam? An Integrated Grey Delphi–DEA Model Approach

Author

Listed:
  • Phi-Hung Nguyen

    (Research Center of Applied Sciences, Faculty of Business, FPT University, Hanoi 100000, Vietnam)

  • Thi-Ly Nguyen

    (Faculty of Management, Hanoi School of Business and Management, Hanoi 100000, Vietnam)

  • Hong-Quan Le

    (Research Center of Applied Sciences, Faculty of Business, FPT University, Hanoi 100000, Vietnam)

  • Thuy-Quynh Pham

    (Research Center of Applied Sciences, Faculty of Business, FPT University, Hanoi 100000, Vietnam)

  • Hoang-Anh Nguyen

    (Research Center of Applied Sciences, Faculty of Business, FPT University, Hanoi 100000, Vietnam)

  • Chi-Vinh Pham

    (Research Center of Applied Sciences, Faculty of Business, FPT University, Hanoi 100000, Vietnam)

Abstract

Foreign direct investment (FDI) is an important factor in building a strong economy for a country, particularly in developing and emerging markets. Both domestic enterprises and policy makers have been motivated to attract FDI for the benefits of FDI, such as technological transfers, spillover benefits, and rising competition. There is a need for a functional model to assess how the competitive index affects FDI attractiveness. Therefore, in this study, the authors use an integrated model of Grey Delphi, the Data Envelopment Analysis Super Slack-Based Measure Model (DEA–Super SBM), and the Malmquist Model (DEA–Malmquist) to evaluate the FDI attractiveness of Vietnamese provinces from 2017 to 2021. Firstly, ten critical dimensions of the provincial competitive index (PCI) affecting the number of FDI by cases and amount of FDI capital were validated via the Grey Delphi method. Secondly, the Super-SBM model is applied to assess the FDI efficiency of 63 provinces in Vietnam from 2017 to 2021. Then, the DEA–Malmquist model is employed to analyze the total change in the productivity of 63 provinces’ FDI performance in Vietnam. The findings of this study revealed that the efficiency of FDI in Vietnam’s provinces is relatively low, and there is a significant variation in the attractiveness of FDI among the provinces. This study can provide valuable insights for policy makers and other stakeholders in developing effective strategies to attract FDI and foster economic development.

Suggested Citation

  • Phi-Hung Nguyen & Thi-Ly Nguyen & Hong-Quan Le & Thuy-Quynh Pham & Hoang-Anh Nguyen & Chi-Vinh Pham, 2023. "How Does the Competitiveness Index Promote Foreign Direct Investment at the Provincial Level in Vietnam? An Integrated Grey Delphi–DEA Model Approach," Mathematics, MDPI, vol. 11(6), pages 1-30, March.
    • Handle: RePEc:gam:jmathe:v:11:y:2023:i:6:p:1500-:d:1101637
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    References listed on IDEAS

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    2. Marvin Ruano & Chien-Yi Huang & Phi-Hung Nguyen & Lan-Anh Thi Nguyen & Hong-Quan Le & Linh-Chi Tran, 2023. "Enhancing Sustainability in Belize’s Ecotourism Sector: A Fuzzy Delphi and Fuzzy DEMATEL Investigation of Key Indicators," Mathematics, MDPI, vol. 11(13), pages 1-29, June.
    3. Phi-Hung Nguyen, 2023. "A Fully Completed Spherical Fuzzy Data-Driven Model for Analyzing Employee Satisfaction in Logistics Service Industry," Mathematics, MDPI, vol. 11(10), pages 1-34, May.

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